MP Materials inks rare earths deal with mystery automaker

MP Materials (NYSE: MP) signed an “enormous” rare-earths supply contract with an unidentified automaker and is pursuing similar deals for a magnet-making plant it plans to build in Texas. 

The sole American producer of rare earth minerals said Thursday the agreement would supply neodymium-praseodymium oxide, a key material used to build motors, without providing additional details about the size of the contract. The news came alongside fourth-quarter earnings that beat analyst estimates.

The deal is the latest sign that companies are racing to shore up supplies of rare earth materials that are critical to vehicles, consumer electronics and defense technology. MP Materials received a $400 million equity investment from the Pentagon last year to scale up production as part of the Trump administration’s sweeping efforts to onshore critical minerals. 

The company described the unidentified automaker as “one of America’s leading industrial and technology companies,” in a call with investors. 

In an interview, Chief Executive Officer James Litinsky said the company also is in talks with other firms to supply magnets from the 10X rare earth magnet manufacturing plant in Texas that it aims to commission in 2028. 

“The engagement in the supply chain is very high right now. We’re having a lot of conversations,” said Litinsky. “It would be natural to conclude that there will be a number of deals out of 10X.”

MP Materials already has an agreement with General Motors to supply rare earth materials, alloys and finished magnets.

(By Jacob Lorinc)