MP Materials Secures Major Aerospace and Defense Deal
MP Materials (NYSE: MP) has entered into a significant long-term agreement to supply gadolinium oxide to an undisclosed U.S. aerospace and defense manufacturer. The contract is expected to be worth nine figures over multiple years and will enhance the company’s separation capacity at its Mountain Pass facility in California.
In Q2, MP Materials produced 840 metric tons of neodymium-praseodymium (NdPr) oxide, marking a 41% year-over-year increase, and sold 1,006 metric tons, a 127% rise from the previous year. These efforts contributed to a quarterly revenue of $108.5 million, an 89% increase, while adjusted EBITDA improved by $41 million to $28.5 million.
The deal builds on previous commitments from major clients, including a $400 million investment from the Department of Defense and a $500 million deal with Apple for American-made rare-earth magnets, indicating a growing validation of MP Materials’ domestic supply chain strategy.
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