MP Materials (NYSE:MP) has qualified rare earth magnets for General Motors and is ramping production, CEO and Chairman Jim Litinsky said at an investor conference, marking a milestone in the company’s expansion beyond mining and refining.
Litinsky said the company plans to bring Apple online as a customer next year and is focused on increasing production at its Independence facility and completing its planned 10X magnet manufacturing project with the Department of War. He said MP has more than 300 employees in its magnetics business.
The CEO also outlined potential demand from robotics and defense applications, while cautioning that large-scale humanoid robotics demand could take years to develop.
Domestic supply chain and Pentagon agreement
Litinsky said rare earth magnets are used in products ranging from electric vehicles and consumer electronics to drones and defense systems. He described the current U.S.-China trade situation as an “uneasy détente,” saying Chinese export licensing continues to restrict access for some applications.
He said MP was selected for its Department of War agreement because it can conduct mining, refining, metal making and magnet manufacturing within the United States. Litinsky said the Pentagon wanted to expand the company’s capabilities tenfold.
Asked whether a Democratic-controlled Congress could affect the agreement, Litinsky said the company has a binding contract and expects continued bipartisan support for critical minerals. He said MP has “almost no concern” about changes to its deal.
The Pentagon has contracted for 100% of the planned 10X production, Litinsky said, adding that MP can allocate that output to customers as long as it supplies American industry.
Mining and magnet production
Litinsky said MP’s rare earth oxide production run rate is above 50,000 tons and is moving toward 60,000 tons. He said the company’s refining operation is running at a substantially normalized level and highlighted planned projects including chlor-alkali production and recycling for Apple.
The CEO said MP has reduced the heavy rare earth content in magnets meeting automotive specifications by approximately 50% to 60% over the past two years. He said the company expects to satisfy many uses, including some robotics and defense applications, without heavy rare earths when 10X comes online.
Instead, Litinsky argued that neodymium-praseodymium, or NdPr, is the more significant supply constraint. He cited MP and Lynas as the principal existing sources of NdPr production outside China, saying much of Lynas’ output is committed to Japan.
Robotics demand and expansion plans
Litinsky estimated that a humanoid robot could require roughly three to five kilograms of magnets, although he noted that designs and estimates vary. He said a manufacturer producing 1 million humanoid robots annually could use approximately 40% to 70% of MP’s planned 10X capacity.
MP is already receiving requests for quotations related to robotics that exceed planned 10X production, he said. But he added that large-scale demand is unlikely to be a 2026 or 2027 event and could develop over the next three to five years.
Asked about the risk of customers substituting other technologies for rare earth magnets, Litinsky said alternatives exist for electric vehicles but can involve higher material costs or reduced efficiency. He said substitution would be more challenging in robotics, where compact components and torque density are important.
Litinsky said MP expects its magnetics business to become materially larger over time but intends to expand methodically rather than speculate on capacity. He noted that Apple has agreed to purchase a minimum of $500 million of magnets from the Independence facility and is the foundational customer for MP’s recycling business.
For now, he said, the company’s priorities are to continue ramping Independence and complete 10X. He also said MP could look to acquire other assets if opportunities emerge at attractive prices.
About MP Materials (NYSE:MP)
MP Materials operates the Mountain Pass rare earth mine and processing facility in California. The site is a major North American source of rare earth materials, which are used in products such as electric vehicles, wind turbines, electronics and defense systems. The company mines and processes rare earth ore into concentrate and separated products, including neodymium-praseodymium (NdPr), a key input for high-strength permanent magnets. MP Materials is also developing domestic magnet manufacturing capabilities to extend its business further along the supply chain.
