MP Materials' NdPr Production Soars: Can Growth Continue?

MP Materials MP is demonstrating strong growth in rare earth production, with back-to-back solid quarterly performances so far this year. Production of neodymium and praseodymium (NdPr) reached 721 metric tons in the third quarter, a 51% surge from the year-ago quarter. This even outscored MP Materials’ previous record NdPr production of 597 metric tons in the second quarter.

This brings the company’s NdPr production to 1,881 MT in the first nine months of 2025, 114% higher than the prior year. MP has already surpassed 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 was down 4% year over year to 13,254 metric tons (MT) in the third quarter. It was the second-highest quarter on record in the company’s history. MP Materials had reported REO production of 13,145 metric tons in the second quarter of 2025.

The Materials segment generates revenues primarily from the sales of rare earth concentrate and 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 reported NdPr production at 2,003 tons in the quarter ended Sept. 30, 2025. Lynas’ total REO production was 3,993 tons. Lynas also signed first customer contracts for separated Heavy Rare Earth oxides (dysprosium, terbium) and products shipped to customers, with pricing reflecting the strategic value of these materials.

Energy Fuels UUUU has been producing mixed rare earth element (REE) carbonate from various uranium- and REE-bearing materials acquired from third parties at commercial scale at its While Mesa Mill since 2022. Energy Fuels started producing separated NdPr at a commercial scale at the mill in 2024. 

Energy Fuels produced on-spec dysprosium oxide at its White Mesa Mill in Utah at pilot scale in July 2025 and expects to produce terbium oxide at pilot scale in the fourth quarter of 2025 and samarium (Sm) oxide at pilot scale in the first quarter of 2026. Commercial-scale production of dysprosium and terbium at the Mill is expected in the fourth quarter of 2026. 

MP’s Price Performance, Valuation & Estimates

MP Materials shares have skyrocketed 275.12% so far this year compared with the industry’s 20.5% growth.

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MP is trading at a forward 12-month price/sales multiple of 22.45X, a significant premium to the industry’s 1.42X.

The Zacks Consensus Estimate for MP Materials’ 2025 earnings is pegged at a loss of 20 cents per share. The estimate for 2026 is pegged at a profit of 84 cents per share, indicating a solid improvement. The estimates for 2025 have moved up in the past 60 days, while the same for 2026 has moved down, as shown below.

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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