MP has halted sales of its mined rare‑earth material to China’s Shenghe Resources as part of a new agreement with the U.S. government, shifting its focus toward domestic customers such as General Motors and Apple.
Shift away from Chinese buyers
During the first quarter of 2025, MP’s largest revenue source was the sale of mined material to Shenghe. The deal with Washington now requires the firm to stop those shipments. Under the same agreement, MP will receive a guaranteed minimum price for certain products, with the government covering any shortfall if third‑party sales fall below that level.
The plan is to scale up its own magnet production, which will consume much of the material it processes. The company converts mined rare earths into oxides, then into metals and alloys that form neodymium‑iron‑boron (NdFeB) magnets.
New contracts with U.S. manufacturers
In May, MP announced it expects to begin shipping finished magnets to General Motors later this year. It also signed a supply agreement with Apple, though details of the arrangement were not disclosed.
Related: Edinburgh researchers use virus history for pandemic prediction
Alongside the shift, Energy Fuels is expanding its rare‑earth operations after securing $725 million in conditional government funding. The firm plans to send oxides to South Korea soon, and it is in the process of acquiring Australian Strategic Materials, which owns a rare earths metal‑making plant in South Korea. A $1.9 billion purchase of German magnet maker Vacuumschmelze (VAC) will route more Energy Fuels products to VAC’s U.S. facilities.
China remains the world’s biggest producer of NdFeB magnets. Japan, South Korea and the United States together generate roughly 13,000–18,000 tonnes annually, according to rare‑earth consultant John Ormerod. Europe contributes a modest amount as well.
MP, which received a conditional $500 million from Washington in June, said the funding will help it increase metal and oxide output, which it described as “expanding the pie for everyone.” The firm’s recent earnings have been bolstered by the government deal, which guarantees a floor price for some of its products.