By MP Materials’ stock climbed sharply on Friday after the rare earth miner reported improved second-quarter results, record production of a critical rare earth oxide, and transformative investment agreements with both the US Defense Department and Apple.
The developments have raised investor hopes that the company is moving closer to sustained profitability.
Improved financial performance on higher sales
For the quarter, MP Materials reported an adjusted net loss of $21.37 million, or 13 cents per share.
This marks a 24% improvement from the $28 million loss, or 17 cents per share, posted in the same quarter last year.
Sales surged 84% year-over-year to $57.4 million, compared with $31.3 million in the second quarter of 2024.
The jump in revenue was driven largely by record production of neodymium-praseodymium (NdPr) oxide, a key raw material used in permanent magnets for electric vehicle motors, robotics, and electronics.
The miner produced 597 metric tons of NdPr in the quarter, more than doubling last year’s output with a 119% increase.
The boost in production capacity highlights MP’s growing role in the rare earth supply chain, particularly as global demand for EVs and high-tech applications continues to climb.
Major defense department investment and agreements
MP Materials’ financial report comes on the heels of significant strategic agreements.
Last month, the US Defense Department agreed to purchase $400 million worth of MP’s preferred stock, making the federal government the company’s largest shareholder.
As part of the arrangement, the Pentagon set a price floor for NdPr and committed to purchasing 100% of the offtake from a new magnet production facility that MP will construct.
This move is seen as a step toward strengthening domestic supply chains for critical minerals, reducing reliance on foreign sources, and securing the materials necessary for defense and clean energy technologies.
The Defense Department’s investment not only provides MP with substantial capital but also offers a guaranteed buyer for its future production, potentially stabilizing revenue streams in the years ahead.
Apple partnership and rare earth recycling plans
In another high-profile deal, MP Materials announced that Apple will invest $500 million into its production through the purchase of rare earth magnets.
Apple’s commitment extends beyond procurement, as the technology giant will also partner with MP to help launch a rare earth recycling facility.
This collaboration underscores a growing trend among major corporations to secure sustainable and ethically sourced supply chains for critical materials.
It also positions MP at the center of both government and private-sector initiatives to expand domestic rare earth production and recycling capabilities.
Following the earnings release and deal announcements, MP’s shares surged 11% in morning trading on Friday.
The stock lost most of the gains and was trading 2.6% up at press time.
The combination of record production, narrowing losses, and long-term purchase agreements has strengthened investor confidence.
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