MP Materials secures nine-figure aerospace and defense supply deal

MP Materials has entered into a multi-year agreement to supply gadolinium oxide to an undisclosed U.S. aerospace and defense manufacturer. The contract is expected to be worth nine figures. Gadolinium oxide is a critical rare-earth material used in infrared sensors, electronics, and nuclear reactor shielding for submarines.

To meet this demand, the company is expanding separation capacity at its Mountain Pass facility in California. MP Materials is also growing its presence in Texas, where it produces rare-earth metals and magnets in Fort Worth and is developing a large magnet manufacturing campus in Northlake.

In the second quarter, the company reported a 41% year-over-year increase in NdPr oxide production, reaching 840 metric tons. NdPr is essential for permanent magnets used in electric vehicles, drones, robotics, and wind turbines. Quarterly revenue rose 89% to $108.5 million, while adjusted EBITDA increased by $41 million to $28.5 million.