MP Materials Reports 84% Revenue Growth to $57.4 Million in Q2 2025

MP Materials Corp. reported significant financial results for the second quarter of 2025, with total revenue reaching $57.4 million, an increase of 84% compared to $31.3 million in the same period last year. For the first half of 2025, revenue totaled $118.2 million, up 48% from $79.9 million in the first half of 2024. The increase in revenue was primarily driven by a substantial rise in sales of neodymium-praseodymium (NdPr) oxide and metal, which surged by 283% year-over-year in the second quarter, contributing $25 million to the total revenue. However, the company also experienced a decline in rare earth concentrate revenue, which fell by 51% in the second quarter due to the strategic decision to cease shipments to China in response to tariffs and export controls.

Despite the revenue growth, MP Materials reported a net loss of $30.9 million for the second quarter, a slight improvement from a loss of $34.1 million in the prior year. The loss for the first half of 2025 was $53.5 million, compared to a loss of $17.6 million in the same period last year. The company attributed the increased losses to higher operating costs, including a rise in selling, general, and administrative expenses, which increased by 28% to $27.4 million in the second quarter. Additionally, the company incurred costs related to the ramp-up of its operations and investments in its Independence Facility, which is expected to enhance its production capabilities.

Operationally, MP Materials is advancing its strategic initiatives, including the development of its Independence Facility in Texas, where it plans to manufacture neodymium-iron-boron (NdFeB) permanent magnets. The company began generating revenue from magnetic precursor products in early 2025, marking a significant step in its downstream operations. In July 2025, MP Materials entered into a long-term supply agreement with Apple Inc. for the development and supply of magnets, which includes a $200 million prepayment from Apple, further solidifying its market position.

The company also announced a public-private partnership with the U.S. Department of Defense (DoD) aimed at establishing a domestic rare earth magnet supply chain. This partnership includes a $400 million investment from the DoD in convertible preferred equity and a commitment to purchase all magnets produced at the planned 10X Facility for ten years. The DoD will also provide a price floor for NdPr products, which is expected to stabilize revenue and mitigate market volatility. As of June 30, 2025, MP Materials had $753.7 million in cash, cash equivalents, and short-term investments, positioning it well for future growth and operational expansion.

Looking ahead, MP Materials anticipates continued revenue growth driven by its strategic partnerships and the ramp-up of production at its facilities. The company is focused on enhancing its operational efficiency and expanding its market share in the rare earth materials sector, particularly in light of increasing demand for clean technology applications. However, it remains cautious about potential market fluctuations and geopolitical risks that could impact its operations and financial performance.