MP Materials Boosts NdPr Oxide and REO Production in Q3 Despite Market Challenges

MP Materials

MP Materials, a leading US-based producer of rare earths, reported a significant increase in the production and sales of neodymium-praseodymium (NdPr) oxide and rare earth oxide (REO) for the third quarter of 2024. Despite ongoing market pressures, including oversupply and sluggish demand, the company’s performance demonstrates resilience and a strategic focus on expanding its output to meet global demand, particularly in sectors like electric vehicles (EVs) and renewable energy.

Key Q3 Production and Sales Highlights

In the July-September period, MP Materials ramped up its NdPr oxide production by 76%, reaching 478 tonnes, up from 272 tonnes produced in the second quarter of 2024. This surge in production was complemented by a rise in sales volume, which increased to 404 tonnes from just 136 tonnes in the previous quarter. However, despite the strong output, the average realized price for NdPr oxide fell slightly to $47 per kilogram, compared to $48 per kilogram in Q2.

Looking further upstream, MP Materials reported a 51% increase in its total REO production, which rose to 13,742 tonnes in Q3, compared to 9,084 tonnes in the second quarter. The company also saw a substantial increase in REO sales, reaching 9,729 tonnes in Q3, up from 5,839 tonnes in Q2.

Market Dynamics and Price Recovery

Although NdPr prices have been under pressure for much of 2024 due to oversupply and weaker demand, the market saw a rebound in August and early September. This price rally was driven by tighter oxide supply in China, coupled with an uptick in demand, particularly from industries focused on clean energy and electric vehicles. The shift in market conditions, including tightening supply chains and renewed global demand, provided a boost to prices and helped stabilize the rare earth market temporarily.

MP Materials' increased production and sales volumes come at a pivotal time, as the demand for rare earth materials, especially those used in the manufacturing of magnets for electric motors and wind turbines, continues to rise. The company’s efforts to boost output align with broader market trends seeking to diversify the supply of critical minerals, reducing dependency on China, which dominates the rare earth market.