MP Materials Signs Rare Earth Agreement With Unnamed Car Manufacturer

MP Materials Secures Major Rare Earths Supply Agreement

MP Materials Corp. has entered into a significant rare earth supply contract with a prominent automaker, whose name has not been disclosed. The company is also seeking additional partnerships as it prepares to establish a new magnet production facility in Texas.

As the only US-based producer of rare earth minerals, MP Materials announced on Thursday that the deal involves providing neodymium-praseodymium oxide, an essential component for manufacturing electric motors. While the company did not reveal the contract's volume, the announcement coincided with quarterly earnings that surpassed market expectations.

This agreement highlights the growing urgency among manufacturers to secure rare earth elements, which are vital for automotive, electronics, and defense industries. Last year, MP Materials received a $400 million investment from the US Department of Defense to boost domestic production, aligning with government initiatives to strengthen the supply chain for critical minerals.

During a call with investors, the company described its new partner as a leading American industrial and technology firm.

CEO James Litinsky shared in an interview that MP Materials is also negotiating with other companies to provide magnets from its upcoming 10X manufacturing plant in Texas, which is expected to begin operations in 2028.

“There is currently a high level of activity in the supply chain, and we are engaged in numerous discussions,” Litinsky commented. “It’s reasonable to expect that several agreements will result from the 10X project.”

MP Materials already maintains a supply arrangement with General Motors for rare earth materials, alloys, and finished magnets.

Additional remarks from the CEO have been included throughout this update.

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