America’s Rare Earth Bet Nears a Real Test: MP Materials Closes In on GM Deliveries

MP Materials Corp., a key player in America's pursuit of reducing reliance on Chinese-processed rare earths, is inching closer to delivering magnets to General Motors (GM) by the end of the year. According to CFO Ryan Corbett, MP's Mountain Pass facility in California is producing NdPr oxide at a rate of about 1,000 metric tons per quarter, with the goal of reaching full capacity.

Corbett noted that the only comparable historical case is Australia's Lynas Rare Earths, which took nearly seven years to reach full run-rate at a similar scale. MP's second-quarter results showed a 127% year-over-year increase in NdPr sales volumes, surpassing 1,000 tons for two consecutive quarters and resulting in a positive adjusted EBITDA of $28.5 million.

CEO James Litinsky revealed that MP has already delivered magnets to GM for qualification and regulatory testing, with commercial shipments starting in the fourth quarter of 2026. The company inked a long-term supply arrangement with GM in April 2022, despite lacking commercial magnet production capability at the time. Hedge fund holdings of MP Materials Corp. (NYSE:MP) remained stable, with both MP and GM experiencing slight declines in holdings from Q1 to Q2.

While MP's production numbers are robust, the timeline to reach full capacity and deliver commercial magnets remains uncertain, as compared to Lynas Rare Earths' seven-year journey to full run-rate. The real test for MP Materials Corp. (NYSE:MP) will come in the fourth quarter of 2026 when commercial magnet shipments to GM are expected to begin.