Investing.com -- Shares of MP Materials climbed 4% in pre-open trading Wednesday following the announcement that the company has commenced commercial production of neodymium-praseodymium (NdPr) metal at its flagship Independence facility in Fort Worth, Texas. The company also reported the trial production of automotive-grade sintered neodymium-iron-boron (NdFeB) magnets, essential components in various high-tech applications.
James Litinsky, Founder, Chairman, and CEO of MP Materials, stated, "This milestone marks a major step forward in restoring a fully integrated rare earth magnet supply chain in the United States." He highlighted that with the new development, the U.S. is closer to reducing its reliance on foreign sources for these critical materials.
The Independence facility's achievements are seen as a turning point for MP Materials and U.S. competitiveness in a vital industry. The facility is expected to produce approximately 1,000 metric tons of finished NdFeB magnets per year, with plans to gradually increase production starting in late 2025. These magnets are crucial for a wide range of applications, including vehicles, drones, robotics, electronics, and aerospace and defense systems.
In further positive news, MP Materials reported record-breaking production numbers for 2024 at its Mountain Pass mine and processing facility in California. The site delivered over 45,000 metric tons of rare earth oxides contained in concentrate and produced around 1,300 metric tons of NdPr oxide, setting a U.S. record for primary production.
The company's progress in reestablishing a domestic supply chain for rare earth magnets has been well-received by the market, as evidenced by the uptick in MP Materials' stock. This move aligns with broader efforts to enhance U.S. manufacturing capabilities and reduce dependence on international suppliers for critical resources.
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