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MP Materials Delivers Record Production Levels: Is It Sustainable?
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Key Takeaways
MP Materials' NdPr output hit 597 MT in Q2, rising 119% year over year and hitting a new quarterly record.
First-half 2025 NdPr production reached 1,160 MT, already near full-year 2024 level.
MP shares have soared 362.9% in 2025, far outpacing the industry's 17.8% growth.
MP Materials (MP - Free Report) is demonstrating strong growth in rare earth production, with back-to-back record quarterly performances so far this year. Production of neodymium and praseodymium (NdPr) reached 597 metric tons in the second quarter, a 119% surge from the year-ago quarter. This even outscored MP Materials’ previous record NdPr production of 563 metric tons in the first quarter.
This brings the company’s NdPr production to 1,160 MT in the first half of 2025, 188% higher than the prior year. MP is close to its 2024 NdPr production of 1,294 MT. The company has been ramping up its NdPr production since it started production in the fourth quarter of 2023.
Rare Earth Oxide (REO) production increased 45% to 13,145 metric tons in the second quarter. It was the second-highest quarter on record in the company’s history. This was driven by higher recoveries from the continued implementation of Upstream 60K optimizations. MP Materials had reported REO production of 12,213 metric tons in the first quarter of 2025.
The Materials segment generates revenues primarily from the sales of rare earth concentrate and of NdPr oxide and metal, mostly to customers in Japan, South Korea and broader Asia. As the company ramps up production of separated rare earth products, it expects NdPr oxide and metal revenues to become a larger portion of its total revenues.
Lynas Rare Earth (LYSDY - Free Report) achieved record NdPr production at 2,080 tons in its recently reported fourth-quarter fiscal 2025 results (ended June 30, 2025), exceeding the 2,000-ton mark for the first time.
Lynas’ total REO production was 3,212 tons. The results reflect the progressive commissioning of the various assets constructed as part of the Lynas 2025 capital project. The company stated it remains on track to deliver its 2025 target capacity of 10.5 kt per year.
Energy Fuels (UUUU - Free Report) has been producing a mixed RE Carbonate from third-party sourced monazite sands at the Mill since 2021. In 2024, changes were made at the White Mesa Mill to install the capacity to produce up to 800 – 1,000 metric tons of separated NdPr per year from monazite. From this, Energy Fuels produced 38 tons of separated NdPr during the year.
Energy Fuels has sent samples of this NdPr product to permanent magnet manufacturers and other companies around the world for product qualification. Initial testing responses have been positive.
MP’s Price Performance, Valuation & Estimates
MP Materials shares have skyrocketed 362.9% so far this year compared with the industry’s 17.8% growth. During this time, the Basic Materials sector has risen 14.7%, while the S&P 500 has gained 9.6%.
Image Source: Zacks Investment Research
MP is trading at a forward 12-month price/sales multiple of 26.05X, a significant premium to the industry’s 1.15X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MP Materials’ 2025 earnings is pegged at a loss of 35 cents per share. However, the estimate for 2026 is pegged at a profit of 97 cents per share, indicating a solid improvement. The estimates for both 2025 and 2026 have moved up in the past 60 days, as shown below.
Image: Bigstock
MP Materials Delivers Record Production Levels: Is It Sustainable?
Key Takeaways
MP Materials (MP - Free Report) is demonstrating strong growth in rare earth production, with back-to-back record quarterly performances so far this year. Production of neodymium and praseodymium (NdPr) reached 597 metric tons in the second quarter, a 119% surge from the year-ago quarter. This even outscored MP Materials’ previous record NdPr production of 563 metric tons in the first quarter.
This brings the company’s NdPr production to 1,160 MT in the first half of 2025, 188% higher than the prior year. MP is close to its 2024 NdPr production of 1,294 MT. The company has been ramping up its NdPr production since it started production in the fourth quarter of 2023.
Rare Earth Oxide (REO) production increased 45% to 13,145 metric tons in the second quarter. It was the second-highest quarter on record in the company’s history. This was driven by higher recoveries from the continued implementation of Upstream 60K optimizations. MP Materials had reported REO production of 12,213 metric tons in the first quarter of 2025.
The Materials segment generates revenues primarily from the sales of rare earth concentrate and of NdPr oxide and metal, mostly to customers in Japan, South Korea and broader Asia. As the company ramps up production of separated rare earth products, it expects NdPr oxide and metal revenues to become a larger portion of its total revenues.
Lynas Rare Earth (LYSDY - Free Report) achieved record NdPr production at 2,080 tons in its recently reported fourth-quarter fiscal 2025 results (ended June 30, 2025), exceeding the 2,000-ton mark for the first time.
Lynas’ total REO production was 3,212 tons. The results reflect the progressive commissioning of the various assets constructed as part of the Lynas 2025 capital project. The company stated it remains on track to deliver its 2025 target capacity of 10.5 kt per year.
Energy Fuels (UUUU - Free Report) has been producing a mixed RE Carbonate from third-party sourced monazite sands at the Mill since 2021. In 2024, changes were made at the White Mesa Mill to install the capacity to produce up to 800 – 1,000 metric tons of separated NdPr per year from monazite. From this, Energy Fuels produced 38 tons of separated NdPr during the year.
Energy Fuels has sent samples of this NdPr product to permanent magnet manufacturers and other companies around the world for product qualification. Initial testing responses have been positive.
MP’s Price Performance, Valuation & Estimates
MP Materials shares have skyrocketed 362.9% so far this year compared with the industry’s 17.8% growth. During this time, the Basic Materials sector has risen 14.7%, while the S&P 500 has gained 9.6%.
MP is trading at a forward 12-month price/sales multiple of 26.05X, a significant premium to the industry’s 1.15X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MP Materials’ 2025 earnings is pegged at a loss of 35 cents per share. However, the estimate for 2026 is pegged at a profit of 97 cents per share, indicating a solid improvement. The estimates for both 2025 and 2026 have moved up in the past 60 days, as shown below.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.