Rare earths miner MP Materials defied expectations with a strong quarterly profit announcement on Thursday, sending its shares on a slight uptick in after-hours trading. The company, which operates the Mountain Pass mine in California, reported a net income of $7.4 million in the second quarter, far surpassing analyst predictions.
Specializing in the extraction of rare earths, a crucial component in the production of magnets for electric motors, MP Materials has long been focused on processing its own resources in-house. In a significant milestone, the company recently began refining small amounts of rare earths on-site in California, a development years in the making.
While executives expressed confidence in the progress made so far, they acknowledged that further calibration of the refining equipment was necessary before forecasting production or revenue for 2024. Nevertheless, the successful initiation of domestic rare earths processing marks a significant step towards independence from reliance on Chinese partners for further refining.
“We feel comfortable that what we’ve designed is able to perform… and that with time, we’ll get to greater throughput, reliability, and performance yield,” said Michael Rosenthal, MP’s chief operating officer.
The news of MP Materials’ achievements is a promising sign for the rare earths industry, as companies seek to diversify supply chains and reduce reliance on China, the dominant player in the global rare earths market. With ongoing developments in domestic processing capabilities, MP Materials continues to position itself as a key player in the sector’s future.
