MP Materials (MP) Baird 2024 Global Consumer, Technology & Services Conference summary

Strategic overview and market context

• Operates the only scaled rare earth production in the Western Hemisphere, with a mine in California and a magnetics facility in Texas.

• Pursues a three-stage strategy: concentrate production, refining to separated oxides, and downstream magnet manufacturing.

• Produces about 15% of global rare earth content and aims to restore the full supply chain to the Western world.

• Market fundamentals remain strong long-term, with focus on supply security and domestic competition, especially after recent tariff announcements.

• End markets for rare earth magnets are diverse: EVs (25%), wind power (10%), industrial motors (15%), and consumer electronics/appliances (25%).

Supply chain, geographic dynamics, and policy

• China dominates magnet production (90%), with Japan holding most of the rest; Western capacity is just emerging.

• U.S. and European OEMs increasingly value supply chain security and environmental disclosure, especially for magnets.

• Recent U.S. policy (e.g., McCain Act) will require defense materials to be non-Chinese sourced by 2026-2027.

• Production tax credits and industrial policy are incentivizing capital formation for Western supply chains.

• Robotics and AI are expected to further increase demand for rare earths, highlighting the need for Western industry.

Operational execution and expansion plans

• Stage I (concentrate production) is highly efficient, producing over 3.5x more than previous operators.

• Upstream 60K project targets a 50% production increase (to 60,000 tons) over four years, with early improvements expected by late 2024 and more significant gains by 2028.

• Stage II (refining) is ramping up, with a focus on cash flow and operational proof points.

• Stage III (magnetics) facility in Texas is fully committed, with General Motors as a foundational customer; precursor deliveries start late 2024, magnet production by end of 2025.

• Multi-year ramp expected for full magnetics capacity, with strong customer demand already secured.