MP Materials (MP) investor relations material

Customer and contract developments

• Announced foundational customers for new magnet facility, including General Motors and Apple, with Apple taking the majority of expansion capacity.

• Department of Defense contract includes 100% offtake with minimum guaranteed EBITDA and commercial syndication opportunities.

• No immediate pressure to announce new customers due to strong contract structure and full capacity at Independence facility.

• Customer selection focuses on low risk and rapid success, with standardization in automotive supply chains aiding efficiency.

• Major customer engagement and qualification trials progressing, with commercial production targeted by year-end and sales expected to begin early next year.

Market trends and supply chain strategy

• Geopolitical tensions, especially with China, have made supply chain security a top priority, accelerating customer interest.

• Companies are reevaluating magnet specifications and supply chain locations, leading to simplification and standardization.

• Growth opportunities identified in automotive, consumer electronics, industrial, robotics, and drone markets.

• OEMs are increasingly aware of magnet use and are seeking to optimize specifications for cost and supply security.

Production, ramp-up, and cost structure

• Magnet production ramping up with rapid prototyping and process development; commercial facilities expected online by year-end.

• NDPR refining running at 50% throughput, targeting 20% sequential growth, with full 6,000-ton target achievable in 4–6 quarters.

• Cost reduction from $60s/kg to $40s/kg expected mainly through fixed cost absorption as volume increases.

• Dedicated teams for debottlenecking and process improvements ensure bandwidth for simultaneous initiatives.

• Brownfield site and shared infrastructure provide capital efficiency for future expansions and recycling initiatives.