MP Materials(MP.US)Q4 performance turns profitable, partners with a mysterious automaker to secure a big order, and U.S. rare earths localization soars

Mining company MP Materials (MP.US) recently signed a “huge” rare earth supply agreement with an unnamed automaker and is seeking more similar deals for its planned magnetic material factory in Texas. Additionally, MP Materials announced on Thursday that, benefiting from a price support agreement with the U.S. government and magnetic material sales, the company turned a profit in the fourth quarter, surpassing analyst expectations.

For the quarter ending December 31, MP Materials reported revenue of $52.69 million, down 14% year-over-year, missing market expectations; net profit was $9.4 million, or 5 cents per share, a significant improvement from a net loss of $22.3 million (14 cents per share) in the same period last year, exceeding market expectations.

Last year, the U.S. government set a floor price of $110 per kilogram for MP Materials’ rare earths; over the past seven months, rare earth prices roughly doubled, well above this floor. The company’s performance includes $51 million in revenue from a price protection agreement with the U.S. government.

Excluding stock-based compensation and one-time items, the company’s earnings per share were 9 cents. According to LSEG’s IBES data, analysts previously expected breakeven under this metric. As of press time, after-hours trading saw the stock fall 2.67% to $58.40.

Rare earths are minerals composed of 17 metals used to make magnets that convert electricity into motion. The industry is currently dominated by China. The U.S. has an agreement with MP Materials to break China’s control over materials essential for manufacturing weapons, electric vehicles, and many electronic products by 2025.

MP Materials controls North America’s only rare earth mine and processes these critical minerals in California, while also building a magnetic material factory in Texas.

Last year, MP Materials ceased shipments of rare earths to China for processing, cutting off a major revenue source, and has continued to expand processing capacity in California.

Over the past year, MP Materials has been advancing the production of its Texas magnetic material factory. This quarter, the company reported magnetic material business revenue of $19.9 million and an adjusted magnetic material profit of $8.4 million.

On Thursday, the company also announced that, under an agreement with the U.S. Department of Defense, it will build a second magnetic material factory to achieve an annual production of 10,000 tons of magnets.

Big deal with a mysterious automaker

This U.S. sole producer of rare earth minerals disclosed on Thursday that it signed an agreement with a mysterious automaker to supply key materials—neodymium praseodymium oxide—for motor manufacturing, but did not reveal specific contract details.

This deal marks a competitive race among companies to secure supplies of rare earth materials critical for automotive, consumer electronics, and defense technologies. As part of the Trump administration’s push for domestic production of critical minerals, MP Materials received a $400 million equity investment from the Pentagon last year to expand capacity.

In an investor call, the company described the signing automaker as “one of the leading industrial and technology companies in the U.S.”

CEO James Litinsky said in an interview that the company is in talks with multiple firms and plans to supply from its Texas-based 10X rare earth magnetic material plant, expected to start production in 2028. “There is high enthusiasm for supply chain participation, and we are engaged in numerous negotiations,” Litinsky stated. “It’s foreseeable that the 10X plant will secure multiple deals.”

Currently, MP Materials has supply agreements with General Motors for rare earth materials, alloys, and finished magnets.