MP Materials (MP) Gabelli Funds 48th Annual Automotive Aftermarket Symposium summary

Strategic Positioning and Supply Chain Initiatives

• Mountain Pass facility revived from idle status to become the largest rare earth producer in the Western Hemisphere and the only scaled U.S. producer since 2017.

• Integrated supply chain strategy spans upstream mining, midstream refining, and downstream magnet production, aiming to restore the full rare earth supply chain to the U.S.

• Over 600 metric tons of NdPr oxide produced in the last twelve months, with plans to supply finished magnets to a major automotive customer by end of 2025.

• Downstream magnet facility in Texas, a 250,000 sq. ft. site, targets commercial NdPr metal production and GM magnet prototype validation by end of 2024, and serial magnet production by end of 2025.

• Facility aims to restore U.S. capability and security of supply, with a focus on innovation, cost competitiveness, and environmental responsibility.

Market Trends and Demand Drivers

• Electrification of autos, robotics, and industrial automation are key demand drivers for rare earth magnets.

• 94% of current kilowatt-hours deployed in EVs use rare earth permanent magnets.

• Demand for NdFeB magnets is projected to grow at a 9.3% CAGR through 2040, with North American NdPr demand expected to rise 34-fold for fully electric vehicles.

• Significant global supply-demand imbalance for NdPr oxide is forecasted, with cumulative deficits potentially reaching levels 24 times Mountain Pass's output by 2040.

• Market volatility in rare earth pricing is influenced by diverse demand and supply-side constraints, with high capital and time requirements for new supply.

Competitive Advantages and Operational Highlights

• Mountain Pass ore body offers high head grade and favorable mineralization, enabling low-cost concentrate production.

• Upstream 60K initiative targets a 50% production increase over four years, leveraging a world-class, long-life resource.

• Over 40,000 MT TREO concentrate produced for three consecutive years, with a 33-year implied mine life.

• State-of-the-art midstream refinery launched, with over $2 billion invested and over 600 tons of on-spec NdPr oxide produced in the past year.

• Three of the top five global automakers are customers for refined products.