Rare earth elements are fundamental building blocks of the modern economy. They impact trillions of dollars in global gross domestic product through the enablement of end products across industries including transportation, clean energy, robotics, defense, and consumer electronics, among others.
MP Materials Corp is the largest producer of rare earth materials in the Western Hemisphere, owning and operating the only rare earth mine and processing facility of scale in Mountain Pass, California. The company currently produces a rare earth concentrate that it sells to Shenghe Resources, a leading publicly listed company in China, which, in turn, sells that product to refiners. However, it is undertaking a major optimization project, after which it anticipates producing separated rare earth oxides and selling these products directly to end-users, a move the company expects will create an enormous growth opportunity.
Once the company completes its development plans, it is envisaged the Mountain Pass site will be one of the largest, most advanced, and most efficient fully integrated processing facilities in the world. In doing so, MP is hoping to reinvigorate the industrial history of the rare earths supply chain that originated in the United States and provide a domestic alternative to both current and future users of rare earths.
MP believes that its focus on low-cost production gives it a unique competitive advantage. In particular, its location offers significant transportation and operational advantages that create meaningful cost efficiencies and risk mitigation, which should only improve further upon the completion of the planned expansion activities.
Thanks to rapid expansion in production volumes and sales, MP delivered a robust financial performance in 2021 and produced a record volume of rare earth oxides.
As electrification drives significant global growth in demand for rare earth elements, geopolitical factors and sustainability mandates are combining to form considerable tailwinds for MP Materials’ opportunity to create shareholder value.