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MP Materials (NYSE: MP) is set to become a crucial player in the U.S. rare-earth supply chain, supported by a $400 million investment from the Department of Defense (DOD). The company’s Mountain Pass mine in California is the only scalable rare-earth mine in the U.S. and is projected to begin shipping high-performance NdFeB magnets by late 2025.
As of late 2023, MP has already posted record output in NdPr-oxide and recorded nearly $22 million in magnet precursor revenue. The company anticipates turning a profit in the upcoming quarter and plans to commission a heavy rare-earth separation facility by mid-2026 to produce essential metals for high-performance magnets.
Despite the promising outlook, MP faces executional risks in scaling up its magnet factories, with current shares trading below $60 after previously peaking at $100 in October. Investors are advised to consider these factors when evaluating potential investments.
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