Shares of MP Materials Corp. (NYSE: MP) are surging 10.14% in pre-market trading on Friday, following the release of better-than-expected second-quarter results and news of strategic partnerships. The rare earth materials producer demonstrated robust financial performance, signaling strong demand for its products and progress in its vertical integration strategy.
MP Materials reported a quarterly adjusted loss of $0.13 per share, beating analyst estimates of $0.18 loss per share. The company's revenue soared 84% year-over-year to $57.39 million, significantly surpassing the analyst consensus estimate of $46.31 million. This strong performance was driven by record production of neodymium-praseodymium (NdPr) oxide, the two most in-demand rare earth elements, which jumped nearly 120% to 597 metric tons.
Adding to the positive sentiment, MP Materials recently announced two significant partnerships. In July, the company signed a multibillion-dollar deal with the U.S. Department of Defense to boost output of rare earth magnets, which includes a price floor guarantee for NdPr. Additionally, MP Materials secured a $500 million agreement with Apple to supply rare earth magnets, with prepayments expected to cover the majority of capital investments for expanding its Independence mine. These partnerships not only validate the company's capabilities but also position it as a key player in the growing demand for rare earth materials in the tech and defense industries.
Looking ahead, MP Materials expects a 10% to 20% sequential increase in NdPr oxide production in the third quarter, further fueling investor optimism. As the only scaled rare earth mining and processing facility in North America, MP Materials is well-positioned to benefit from the increasing focus on domestic supply chains for critical materials.
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