MP Materials Corp. is around 50% larger than Lynas, it operates the Mountain Pass mine in California, the only integrated rare-earth mining and processing facility in the U.S. The company’s main product is Neodymium-Praseodymium (NdPr), a vital input for high-performance permanent magnets used in electric vehicles, wind turbines, defence systems, and other advanced technologies. With the U.S. Department of Defence now its largest shareholder and a recent $US500 million magnet supply agreement with Apple, MP Materials is positioned as a strategic cornerstone in efforts to secure and diversify America’s rare-earth supply chain.
NB In July 2025, the U.S. Department of Defence (DoD) took a significant equity position in MP Materials Corp. The DoD invested $400 million in convertible preferred stock, making it the largest shareholder in the company. This investment grants the DoD approximately a 15% stake in MP Materials, with the support of the US government we believe investors should now adopt a “buy the dip” approach until further notice.
At this stage MP Materials Corp. is not profitable. In the second quarter of 2025, the company reported a net loss of $US30.9 million, marking a 9.3% improvement over the same period in 2024 but it was narrower than analysts’ expectations, which anticipated a $US19 million loss. However, despite the ongoing losses, MP Materials has demonstrated significant revenue growth: In Q2 2025, revenue surged 84% year-over-year to $US57.4 million, driven by record production and the commencement of magnetics production
- We like the risk/reward towards MP back below $US70 but like LYC it’s going to be a volatile ride.
