MP Materials (NYSE:MP) executives told investors the company marked a “landmark year” in 2025, pointing to higher rare earth oxide output at Mountain Pass, progress toward commercial magnet production in Texas, and new long-term customer agreements as demand for NdPr accelerates.
Mountain Pass output ramps as NdPr production doubles
CEO Jim Litinsky said 2025 performance in the materials segment was highlighted by a doubling of separated NdPr oxide output to 2,599 metric tons. The company ended the year at an annualized run rate of nearly 4,000 metric tons of separated NdPr oxide, according to management, with Litinsky and COO Michael Rosenthal both citing December as a record month that supported the run-rate exit.
CFO Ryan Corbett noted upstream production of more than 50,000 metric tons of REO and concentrate was up 12% versus 2024. He added that, after eliminating third-party concentrate sales in mid-2025, MP will no longer report upstream sales volumes or realized pricing going forward.
Price protection agreement and higher pricing lift profitability
Management emphasized the impact of the company’s price protection agreement (PPA). Corbett said PPA income totaled $51 million in the fourth quarter and, when combined with reported revenue, “effectively reflects realization of the full $110 per unit purchase price floor for sold products,” along with contribution from stockpiled inventory in the quarter’s pricing environment.
Litinsky said higher realized prices, PPA benefits, and continued cost reductions drove a return to profitability in the materials segment, generating $40.3 million of adjusted segment EBITDA in the quarter.
Corbett also cautioned that MP’s contract structures can create a lag when market pricing rises quickly. He said the benefit to reported revenue usually appears with about a one-quarter to one-and-a-half-quarter delay. He added that PPA payments on stockpiled NdPr are calculated based on market pricing without a lag, and as NdPr pricing approached the $110 per kilogram level early in the first quarter, MP planned to elect not to take PPA payments on certain stockpiled NdPr materials, noting the decision to collect PPA is at the company’s discretion.
New NdPr offtake agreement and customer interest outside China
Litinsky said MP signed a “significant” long-term NdPr offtake agreement with a new strategic customer, described on the call as “one of America’s leading technology and industrial companies.” Corbett said the agreement supports near-term benefits for the materials segment, including working capital and sales cadence, while keeping a pathway to downstream magnetics growth.
Asked whether the customer was an auto OEM, Corbett declined to provide specifics beyond reiterating it was a leading U.S. technology company. Executives framed customer interest as linked to efforts to transition supply chains away from China, with Corbett describing MP as a “solutions provider” across the chain from raw materials to magnets.
Magnetics: first commercial-scale magnets and second-half delivery expectation
On the magnetics side, Litinsky said MP produced its first magnets on commercial-scale equipment at its Independence facility late in 2025 and is now optimizing the startup. The company is beginning qualification of commercial processes with its foundational customer and expects initial deliveries and revenue in the second half of 2026.
Rosenthal said Independence commissioned the complete oxide-to-finished-magnet process and is producing “on-spec, high-grade magnets” on commercial-scale equipment using oxide from Mountain Pass. He described the year ahead as focused on troubleshooting, optimization, ramping, and expansion of production.
Corbett said the magnetics segment generated $8.4 million of adjusted EBITDA in the fourth quarter, with full-year magnetics adjusted EBITDA of $26.4 million. He also said MP recorded roughly $74 million of deferred revenue in current liabilities and expects it to be recognized over the next four quarters at EBITDA margins “broadly consistent” with the fourth quarter.
Executives also highlighted progress in reducing heavy rare earth use. Litinsky said MP advanced grain boundary diffusion capabilities such that a magnet formulation and production process uses approximately 60% less heavy rare earth content than originally anticipated while still meeting specifications for high-performance, high-temperature EV-grade magnets.
10X facility site selection, incentives, and 2026 spending outlook
Litinsky said MP selected Northlake, Texas, for its new 10X facility and secured more than $200 million in incentives and grants. He said the company expects to break ground “imminently,” with engineering and long-lead equipment procurement underway.
In Q&A, executives reiterated they are targeting commissioning in 2028. Litinsky said the team is focused on accelerating the schedule, describing 10X as a “zero-based days project.”
Corbett guided to $500 million to $600 million in total capital expenditures in 2026, largely tied to accelerated 10X investment and other growth initiatives, including Independence expansion, recycling, and heavy rare earth separations. He said MP’s liquidity includes more than $1.8 billion of cash on hand.
Corbett also cited an “other receivables” balance of over $131 million, reflecting cash received in the first quarter or expected later in the year, including over $70 million from U.S. government tax credits and PPA payments and a $32 million progress payment related to Apple.
Operationally, Rosenthal said MP expects over 20% sequential NdPr oxide production growth in the first quarter, followed by slower sequential growth in the next two quarters and a re-acceleration late in the year. He said the company aims to exit 2026 approaching a target of 500 tons per month of NdPr oxide production, equivalent to a 6,000 metric ton annualized run rate, while noting maintenance outages and upgrades could affect cadence.
About MP Materials (NYSE:MP)
MP Materials Corporation operates as a vertically integrated producer of rare earth materials in North America. The company owns and manages the Mountain Pass Rare Earth Mine and Processing Facility in California, the only commercially viable rare earth mining and processing site in the United States. MP Materials extracts, separates and refines critical rare earth elements—such as neodymium, praseodymium, and cerium—which are essential inputs for permanent magnets used in electric vehicles, wind turbines, and various defense applications.
The Mountain Pass mine first began commercial rare earth production in the 1950s and was later operated by Molycorp until its bankruptcy in 2015.
