MP Sets Production Records in 2025: Can 2026 go Even Higher?

MP Materials MP is rapidly reinforcing its role in the rare earth supply chain by expanding production of key materials while advancing downstream operations to support a domestic rare earth magnet ecosystem in the United States. Recent operational milestones underscore strong production growth and continued progress toward building an integrated rare earth platform.

In 2025, the company produced a record 2,599 metric tons (MT) of neodymium and praseodymium (NdPr) at Mountain Pass operations, more than double the 1,294 MT produced in 2024. The increase reflects ongoing process optimization and continued ramp-up in production capabilities. MP exited 2025 at nearly 4,000 MT per year run-rate.

MP Materials also achieved record production of 50,692 MTs of rare earth oxides (REO) in concentrates, driven by improved efficiencies and mineral recoveries. It represents a 12% increase year over year.

The company also made progress in downstream manufacturing. It successfully produced its first NdFeB magnets on commercial-scale equipment at its Independence facility. This milestone marks an important step in establishing a domestic supply chain for rare earth magnets. 

MP received the final $50 million prepayment for magnetic precursor products pursuant to the long-term supply agreement with General Motors GM. The Magnetics segment, which includes the Independence facility, represents MP Materials’ push into downstream magnet manufacturing and related operations. The facility began generating revenues from magnetic precursor product sales to General Motors in the first quarter of 2025, signaling the early stages of commercial magnet production in the United States.

In 2026, MP Materials expects to continue delivering growth in NdPr output. It plans to break ground on the 10X magnetics facility in Northlake, TX, while ramping magnet production for General Motors.

The 10X Facility will be the company’s second domestic rare earth magnet manufacturing facility and is expected to begin commissioning in 2028. It is projected to produce an estimated 7,000 MTs of magnets per year. Combined with the Independence facility’s 3,000 MT magnet capacity, MP Materials’ overall U.S. rare earth magnet production capacity will expand to 10,000 MT per year. This will significantly boost domestic output to serve both defense and commercial customers.

Lynas Rare Earth LYSDY reported NdPr production at 3,407 tons in its recently reported first half of fiscal 2026 results (ended Dec. 31, 2025), marking a 15% year-over-year increase. This was impressive despite the December quarter’s production being impacted by cracking and leaching, major maintenance and Kalgoorlie’s electricity issues.

Lynas’ total REO production was 6,375 tons for the half year ended Dec. 31, 2025, 19% higher than the year-ago period. The company completed commissioning for the Mt Weld expansion project and delivered the first half year of Heavy Rare Earth production at Lynas Malaysia.

MP’s Price Performance, Valuation & Estimates

MP Materials shares have surged 138.5% in a year compared with the industry’s 48.2% growth. During this time, the Basic Materials sector has risen 42.8%, while the S&P 500 has gained 23.8%.

MP is trading at a forward 12-month price/sales multiple of 20.48X, a significant premium to the industry’s 1.43X.

The Zacks Consensus Estimate for MP Materials’ 2026 and 2027 earnings has moved down in the past 60 days, as shown below. 

Despite the revisions, the estimate for 2026 is pegged at earnings of 38 cents per share, which suggests a turnaround performance from the loss of 24 cents in 2025. The estimate for 2026 is pegged at a profit of $1.11, indicating a solid 192% improvement. 

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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