MP Materials sold $31.6 million worth of heavy rare earth concentrates to a U.S. aerospace and defense client in the third quarter, according to Argus. The one-time inventory sale involved samarium-europium-gadolinium concentrates for non-magnetic applications. Meanwhile, the…
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MP Materials Plans to Sell USD 31.6 Million Worth of Heavy Rare Earths to an Aerospace and Defense Client
Houston, November 6 (Argus) — U.S. rare earth producer MP Materials sold USD 31.6 million worth of heavy rare earth element concentrates to a U.S. aerospace and defense client in the third quarter, according to Argus.
The product, known as samarium-europium-gadolinium concentrate, contains samarium, europium, and gadolinium, along with rare earth elements such as terbium, dysprosium, and yttrium. Since late 2023, MP has been storing this product at its Mountain Pass mine in California. During the earnings call on November 5, company management stated that this transaction was a one-time inventory sale for non-magnetic applications.
In July, MP signed a long-term agreement to supply gadolinium oxide to a U.S. aerospace and defense manufacturer. The company expects this contract to be worth hundreds of millions of dollars over the next few years. Production of samarium and gadolinium products is still planned to commence in the first half of 2028.
The company plans to begin commercial production of dysprosium and terbium products at Mountain Pass this quarter.
Its heavy rare earth separation capacity is approximately 3,000 tons of feedstock per year (including third-party feedstock), with dysprosium and terbium capacity at about 200 tons per year.
However, management warned that the current high prices for heavy rare earths may not be sustainable in the long term.
In the third quarter, MP's neodymium-praseodymium (NdPr) production increased by 41% year-on-year to a record 1,018 tons; sales volume nearly doubled to 1,020 tons. Revenue from the NdPr oxide and metal business reached USD 101 million, achieving an average selling price of approximately USD 99 per kg, which is within the "high end of the USD 90-plus per kg range" previously guided by the company.
MP expects NdPr sales volume in the fourth quarter to be approximately 1,000 tons, with an average selling price of around USD 100 per kg.
As market prices gradually approach the USD 110 per kg NdPr price floor set by the U.S. Department of Defense, revenue from the company's price guarantee mechanism fell to USD 8.1 million, down from USD 17.6 million in the second quarter and USD 51 million in the fourth quarter of 2025. The company expects the price floor subsidy revenue in the fourth quarter to be about USD 8 per kg, down from the previous level of approximately USD 10 per kg.
During parts of the third quarter, MP's NdPr production exceeded 450 tons per month, approaching the target level of 500 tons per month, despite some unplanned shutdowns in midstream processing. The company has set its 2027 NdPr production target at over 5,000 tons per year.
MP has completed magnetic material certification with U.S. automaker General Motors (GM) and will begin supply in the fourth quarter. Its 10X magnet facility project remains on schedule and is expected to commence production by the end of 2028.
In the third quarter, MP's net loss narrowed to USD 20.7 million, compared to a loss of USD 41.8 million in the same period last year; meanwhile, operating revenue increased by 176% year-on-year to USD 147.7 million.
Sources
- WeChat Official Account (2026-11-08)
- Original link: MP Materials Plans to Sell USD 31.6 Million Worth of Heavy Rare Earths to an Aerospace and Defense Client
- https://mp.weixin.qq.com/s?__biz=MzU1NDM4NjU4NQ==&chksm=fa1d57a523feaade6870d6a4f2dd6a260c47fadacc47d50a40ba0a7801f3665fc37176f6beb9&idx=2&mid=2247506873&sn=2cd09d95f846c3ecbf0031f86063aadd