MP Materials’ MP Magnetics segment represents its strategic move downstream into high-value rare earth magnet manufacturing. At the center of its efforts is its Fort Worth, TX facility (Independence), which serves as both the production hub and engineering headquarters for the segment.
Construction of the facility began in February 2022, marking the development of the first fully integrated rare earth metal, alloy and magnet manufacturing operation in the United States. The facility converts NdPr oxide produced at Mountain Pass into permanent magnets and precursor products, and also has integrated capabilities to support magnet recycling.
In April 2022, the company entered into a long-term agreement to supply magnets and precursor products manufactured at the Independence Facility to General Motors GM as its foundational customer.
In 2024, the company commissioned electrowinning capabilities at the Independence Facility to produce NdPr metal from NdPr oxide, and in 2025, it added strip casting capabilities to produce NdFeB alloy flake, a key precursor product that is utilized as the material feedstock for magnet manufacturing.
The Magnetics segment began generating revenues from the sales of magnetic precursor products to General Motors in the first quarter of 2025. Deliveries commenced in March, contributing $5.2 million to first-quarter 2025 revenues and $493 million toward segment adjusted EBITDA. As production scaled, quarterly revenues rose to $19.9 million in the second quarter, $21.9 million in the third and $19.9 million in the fourth quarter of 2025.
Segment profitability also improved, with adjusted EBITDA reported at $8 million, $9.48 million and $8.4 million across the second, third and fourth quarters, respectively. For the full year, the Magnetics segment generated $66.9 million in revenues, accounting for roughly 30% of total company revenues. It delivered $26.4 million in adjusted EBITDA, representing about 61% of total segment adjusted EBITDA for the year.
The segment commenced the manufacturing of neodymium-iron-boron (NdFeB) permanent magnets in December 2025.
In July 2025, the company entered into a landmark long-term supply agreement with Apple AAPL for the development, manufacture and supply of magnets from the Independence Facility, as well as the development and installation of scaled recycling capabilities at Mountain Pass to produce the contained rare earths from post-industrial and post-consumer recycled rare earth feedstocks. The company is also pursuing sales opportunities to other customers for its future magnet products.
As part of its partnership with the DoW, MP Materials committed to expand the annual capacity of the Independence Facility to 3,000 MTs of magnets. It has also agreed to construct the 10X Facility, which will be its second domestic rare earth magnet manufacturing facility. The 10X Facility is expected to begin commissioning in 2028, and once completed and scaled, it will produce an estimated 7,000 MTs of magnets per year.
These efforts will boost MP Materials’ overall U.S. rare earth magnet production capacity to an estimated 10,000 MTs per year and position it as a key supplier to both defense and commercial markets while strengthening domestic supply-chain resilience.
MP’s Price Performance, Valuation & Estimates
MP Materials’ shares have gained 125.8% in a year compared with the industry’s 58.5% growth.
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MP is trading at a forward 12-month price/sales multiple of 19.21X, a significant premium to the industry’s 1.60X.
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The Zacks Consensus Estimate for MP Materials’ 2026 earnings is pegged at 19 cents per share, indicating an improvement from the loss of 24 cents in 2025. The estimate for 2027 is $1.12 per share, indicating a 492.6% year-over-year improvement.
The estimate for both 2026 and 2027 has moved down in the past 60 days, as shown in the chart below.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #4 (Sell).
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This article originally published on Zacks Investment Research (zacks.com).