MP - Earnings call transcript Q3 2024

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Operator

Hello, and welcome to the MP Materials Third Quarter 2024 Earnings Call. [Operator Instructions] Also, as a reminder, this conference is being recorded.

If you have any objections, please disconnect at this time. With that, I would like to turn the call over to Martin Sheehan, Head of Investor Relations. Mr. begin. may you Sheehan,

Martin Sheehan

and and Chief Quarter everyone. With XXXX Materials Officer; Founder, from operator, Founder Michael MP Chief Officer. and me to Materials MP Operating Chairman Litinsky, Jim Third Earnings Ryan are Executive good you, Officer; Welcome Rosenthal, Corbett, afternoon, and the today Chief Financial Thank Conference Call.

that company's subject statements events and future results a today's to assumptions materially statements As various to from reminder, the filings. release discussion today's are relating will in may and differ to included caveats. Factors that our SEC actual presentation, contain are cause and forward-looking these expectations earnings in

be included means the today earnings release found In have some tons addition, today's to financial and the presentation. most appendix measures we metric presentation. Any discussion GAAP in our tons. EBITDA to reference comparable in adjusted and Reconciliations can in this directly slide to today's non-GAAP measures means EBITDA financial

presentation that, the are Jim? Finally, the our to turn call I'll website. Jim. earnings over on available the release and slide With

James Litinsky

Martin. an team week regardless America. And the voted, incredibly how all now. everyone. been you Thanks, in of same we exciting are It's Hello, on

XX% quarter. started previous MP over a record our am simply, X. Slide proud of or X,XXX metric tons We than extremely XX,XXX of metric higher best That the get Put nearly new REO. let's team's So is quarter. on this production tons execution I achieved upstream contained of

consistency solid for we drove XXK step alongside recoveries. progress Let more change those and detail significant higher get with into in improved we more discussed maintained signifies believe our the business. upstream but Upstream our potential me this in uptimes. will towards repeat optimizations ever. Michael We function have quarter previous that. produced XX% material best we than REO And shortly, recoveries, quarter this productivity reliability recently

our team, say, XXK. Needless our operations into confidence underscore path our of world-class the XXK this of upstream previously circuits. the towards achieving volumes production results quarter clearly vast will through and sales have to more pushing volume the upstream but technical record lumpy, As despite translated these potential much capabilities Upstream midstream concentrate we our stated, be strong in

achieved midstream of October. metric extended XXX and NdPr would quarter. as for oxide the Speaking of from quarter, our maintenance significantly, all a This completed XX% we XX% an of well growth. I record guidance in production we that outage the sequential tons the second in remind you above increase planned represents

quarter. also commission are the We XXK throughout to beginning projects additional Upstream

I XXX oxide flat disruptions, to expect QX NdPr that Given our in and for year. production customer our production. a in next nearly midstream out strong roughly the these planned have potential with be triple momentum of expect to metal orders. production sell-through more like sequentially, seen QX point production QX acceleration allowed inquiries of oxide us samples strong recent a we we to QX's sales in tons. We volume significant highlighting would The then notable uptick and in

midstream positive and in are production complementing we profitability pleased continued the generate QX. Naturally, very strong refining to our comes line all our we this NdPr targets of with current pricing caveats at expect margins have complex gross meet sight levels, the we operations, of holds to to we but a as profitability of ramp-up, Assuming exit usual our upstream.

for proposed extraction rules have production the minerals, critical when both MP. credit manufacturing companies the producing and material including excluded rules on XXx October costs the late for oxide. Initially, indirect direct reduced and the would advanced tax impact costs, Department a in news positive limitations NdPr received to that final policy's like costs credit, XX% which grants the Treasury related issued also We

change This significant include to allow cost final earth substantial now producers refiners material minor overall rules of these vertically structure. such MP U.S. costs. a our make as for reagents portion as chemical particularly up the is extraction rare integrated However, and

downstream our to on magnetics Moving business.

the commissioning as way, on named that begun magnet our to the have facility facilitate. the Worth Fort and strive for electrolysis We road Fort Independence that cells Worth. for metal the production internally we to it refer we in sits mission By

Our XXX team there about track to on and is by now we metal people, year-end. are deliver

Independence start the externally will using We name official going forward.

begin at we of another milestone qualification process, also production integrated of by next facility allow path expect our year. us the first production prototyping This commercial towards Independence In the critical on-spec end on to in magnets the will year-end. magnet by addition, customer

just was across business. execution this our of So in a tremendous quarter summary,

We am and by building the Ryan I XXXX. that, are encouraged I of our significant have year. further turn of proud resilience as but lot it KPIs financial a we into particularly With head to am we our to work team's momentum Ryan? I'll to over review this do, performance.

Ryan Corbett

Thanks, Jim.

Moving X. to Slide

of production XX% On tons, QX. and XX% left see increased our can the year you last to XX,XXX the versus more far challenging of compared that over metric REO slide,

As a to X% sequentially. Jim of sold this increase XX% metric a led increase mentioned, tons X,XXX last strong over we sales as volumes REO, very year and

realized in middle last X% the in slight a realized decline from impact see September, was the quarter, per concentrate which had market price can increase realized positive as $X,XXX our in some versus pricing metric left, a quarter. you remains On last a sequentially. We REO upstream pressured for our on average movement ton guidance but prices XX% pricing positive saw year, in from

on of the to the page. KPIs midstream the right Moving side

mentioned, QX volumes QX's sales than triple sales XXx also Jim initial NdPr metric NdPr of most year's metric higher XXX is the As timing. expected due levels. production XXX out tons, that increase simply over point would nearly nearly totaled tons of volumes. I XX% last originally to produced we oxide, and a

timing on we have the channels. potentially volumes, impact relative tolling up schedules shipping large of ramp our Given metal relatively continue volumes, sales deliveries particularly and still production a low our will as to

Pricing roughly in just in had our expectations, first not with kilogram last begun products about down last to compared this year's refined until came our with of production year-over-year, $X per quarter. quarter QX line Looking QX. sales

sales and well revenues concentrate XX% negative pricing. impact metal realized Moving volumes NdPr to despite in strong Slide in a as X. increase year-over-year generated year-over-year compares The oxide as of sales

addition, cost strong EBITDA oxide QX. in contribution reductions from in well concentrate profit a as results in our gross led sales million NdPr as improvement continued to production In $XX.X sequential

lower Our $X.X of leverage, reserve improving or at million. The cost cost benefit cost QX the inventory our at reserve reducing of quarter. profile million the from $XX.X fixed in inventory as we end resulting cumulative stands by market now us in

diluted we saw the QX. sequential where a improving right of the to improvement versus EBITDA $X.XX On the far slide, adjusted flowed through EPS,

and which in and driven QX, last part NdPr As continues lowering Jim be the as year, have introduction exit result concentrate processes. planned we continued is ramp next further short due however, initiatives of in as we result of additional discussed will in likely flat. as volumes of would I pricing performance. This and midstream oxide production quarters, separated QX, hold in while sales we of upstream and equipment, the unstable over sequential under approximately of on market operation QX held downtime ramp will the other NdPr X%, as would term fine-tuning look current lag we large for in the next down the XXK note, prices production our have market line quarter. increase extended and a our sight we NdPr for production in products. That remainder should on NdPr. to we volumes NdPr And and subscale roughly concentrate generating sales said, few volumes make to some prices given early cost to that realized will and expect by and would to our forward production an be we lower sequentially, headway longer very we of as positive versus to grow This the margin highlighted, as just the also in NdPr assuming pricing, gross be outage concentrate and pricing XX% October

the and sheet. CapEx balance to Moving

cash primarily for the to approximately We costs. have expectations million, reduced our $XXX to CapEx timing XXXX due of be

roll this a to prime maximizing free I to to lower expect a and of will XXXX the starting a on our continue XXXX deeper across projects of as CapEx million dive $XX flow long-term our high-return are XXXX a balance into provide our would find example, outlook quarter do steadfastly on much QX portfolio maintaining to overall, committed We But while we more precise sheet. spend over but remain XXXX. With cash assets, we of fortress expectations call.

of earn XXXX. in our with million average XXXX. In that we our in I This was This customer debt. tranche we million end maturities quarter $XXX along opportunistically $XX the far to investors QX, MP to by ended also buying would approximately price $XXX year, equivalents credits last not Michael first expect repurchasing million and company X.X% of brings remind credits, at received $XXX.X most, Michael? million capital $XX.XX. extending updates of let QX the this the X or coming approximately $XX.X million and we me operations. also with we million $XX vast our receive quarter to to of that the remaining prepayments shared we of it cash tax the approximately Importantly, debt you the over of net of With year-to-date and after give if million expect quarters. an to X.X% all structure over of of we of turn approximately shares the majority that, company. Moreover, the enhanced by the so back to repurchases tax and on $XXX of

Michael Rosenthal

Ryan. Thanks,

our and in Turning in advance throughout all-time tremendous to production circuits of site delivering Slide our downstream continuing and upstream both midstream the utilities. X, overhead and you made records an to shot midstream QX, our assets see can We operation development. progress

from operations results recognize work believe challenges. normal with better-than-expected would change immediately increased uptime annualizing We the optimization XX% improvement that create I'd mill achieved was advise slightly was and In above rate, feed this while incredible recovery year-over-year some the led puts I uptime like upstream and where intermittent recent in performance. We against achieved are sustainable generally parts for initiative particular, to pressure more the our may the and whose on creativity teams this. operation are though year-over-year a to rapid of almost our technicians results. Remarkably, improved performance metallurgy other entirely metallurgists, just with that our very growth quarter. pleased non-outage no

overcome certainly will We these.

Pass ore a slight had body the positive XXK investment capital commissioned the from initiative. in modest the quarter, continue also of on achieved we in experiment ability We baseline our a improvement optimizations to I But with reinforces which change performance, result in to unlock upstream step equipment may setbacks. and assets. In impact project value in confidence enhancement QX. first that Upstream incremental temporary we our the flotation Mountain third sustainably believe This have additional our production

full QX, for However, stably, is full its continuous scale. time, we will to enhance in unit operation, that over not availability improvement grinding our implement it we To and yet benefit. the operating In prepare or time its will, a circuit. QX pre-commissioning significant to began also at improvements

of begun equipment production trial has service and some components. As this been additional today, placed into of has for

last driving incremental recovery expectations As instability this quarter, it I cause have while the and very negatively in initially XXXX. for high before we may impact mentioned investment, operation

customer prior accelerated pleased those business our or optimistic in about most encounter Every our quarter. versus operational saw quality Particularly had well the efficiency. of as as remain product increase and performance With in reliability we operational a Improved and a which quality we meaningful for ability day, our throughput availability foundation, mechanical in oxide as quarter NdPr where midstream circuits setbacks. we in improvement expect, saw deliveries that share to again directional and in our the of nearly metal, of feel a large Our well. one uptime as would uptime. We the NdPr all with challenges improvement increase lagged, accounted the and increasingly our further outperformance guidance. as

showcases can While at overcoming frustrating and operation. times, these significant potential team them the be of our

world-class towards to one, use optimize issues time drive and costs labor, to one by reagent enabling As we have we more levels. address production us downward these

will continue. discussed due first outage. match the of executed to QX expect the figures, roughly But now. We Typically, performance midstream concentrate growth headline NdPr operation, we path an experience production we half outage, for earlier. future Ryan uptime stronger behind investments that an to no in to flat But XXXX. fundamentals the lower coming be sequentially expect well QX this first in stability different. production in discussed, October, is and not of this of the do As expect with us maintenance quarter behind to the strong do QX much quarter and out our In we uneven semiannual the was we

stress doing design execution the The continues on excellent expanded project a make incredible magnetics and budget. There design the construction driving phase. and and schedule group is is air too. strides job an and capital from projects transition we construction enormous in to Our team and excitement as into operations

first delivering to metal currently full-scale furnaces quality the of the end metal look reduction by commissioning our are We forward and year.

other application can magnets, way at magnet of while is on full magnet a target satisfying to yet Independence's representative possess current not machined metal prototype operate NdFeB at scale, and finished block facility. and powder, alloy prototype ingots the to and not capability sintered see X, quality traction facilities these of examples flake, you sintered well and magnetized in standards. While unfinished process or block grain diffusion boundary GBD, the commercial our magnets. On Slide produced motor into perfect, scale EV already The

facility the turnaround and will mistakes ultimately this I a With iterate, manageable and feedback. back experiment, rapid gives to with succeed opportunity from us Jim. that, at to learn turn and Importantly, it scale

James Litinsky

Thanks, Michael.

Turning summary, outstanding highlight which am gross of midstream I quarter to results nice proud near-term milestones. outside across margin to corporate team is are downstream upstream Today's potential, shot XX. our a scaling delivered with positive operations our poised to the that of Vegas. our operations all the offices Slide anticipated transformative MP an business. and Independence, expanding at contribution aspects shift Las an rapid profit in for our our In say This

near-term significant our well will amid outside even a remain for challenging operations, cash have pricing Additionally, day-to-day opportunities of we sources so environment. we positioned

forward perspective. about MP. But sharing America anticipate preview. Tuesday's we I some the look witnessed results to shift into for this here's support translate questions Lastly, the strong political transformative continued and in quick my should week, I

And the one people. really moment, at work that, onshore aligns like of Operator? we're supply Companies With matters. Q&A. the American are our future. clear now Our with from crucial this to to pivotal critical MP mission chains America's mandate nation's for ready our

Operator

Laurence [Operator with from Alexander Jefferies. Instructions] Our first question come will

Kevin Estok

Estok This okay? is able on me Kevin to for Are Laurence. you hear

Ryan Corbett

Yes, Kevin.

Kevin Estok

new seeing to level any would Okay. discussions? whether a price Great. demand the wanted Yes, -- offtake bit just points customers what and about downstream for robotics need to hearing terms interest of of and little or in know I that you really there's applications agreements any you're magnetic spark from maybe maybe and would really

James Litinsky

Sure. is Jim. This

are robotics, what say in seeing and would I design. is prototyping company of on is venture a ton formation action we So say capital and would what I initial

production, it's As a bit mass far early. as still

heard say step of If of is view to about as a of what up. see a we out heating it's talking this really the last couple where been kind I you've kind going sort really that is this years what I create really we've me in of function really accelerating. And change. But would thing quarters, few is

robotics YouTube really get it I'm a video is this good we but sure, of advancements don't sort pretty demand a this out would out supply is the AI you Andreessen of obviously, of some that and is our a accelerating. There actually and all in about the seeing other said, if have Marc space, coming if -- tweeted and think to see and it's -- us yourself, about you huge We the had there. sort robotic how be day, we incredible, Post that a two I know it ago accelerating. when. years you chance, chain there talking asked good, we're are revolution, was seems of robotics, much the with piece the

long-winded we a developing way lot. a that's it see of anyway, so saying, And

scale the anywhere supply have the that's unknown. is to a will start about estimation of an of impact you'll point their I particular, heard X that think at to will if get years still start of in would may a bit in robotics XX talk to X content humanoid for chain what ready. And actuators But demand, little from you in material it EV. the probably to real on you see As this magnetic far versus people But the say as inflection is before. amount I kind our Xx robotics, me chains when to do supply months need because before have demand look that change

cetera, And per larger. substantially so unit billions market the do et of robots, larger realize if content of EV you musk, you what this the the that market view believe and sort of is substantially is is than

security factories, is huge our are robots homes a And us. particularly think this theme say, thing So for our the then the huge. given would national the and we in it's element I just that fact pretty last to

chain And a EVs a from Andresen that supply video, that in and that people few make because the fact, lost I think a that we robotics, national talks much how chain we importance. about about days here there's in lot this. the of from security this in tweeted we and node that we supply sure when have so think webcast -- of that But ago to big push

And over year, doing. what of as it's this -- the importance really next to heats so highlight will it up I I we're the think going think

Ryan Corbett

implications that DFARS about think there's thing I robotics, And But is commercial is is as applications, the the on compliance. applications. an we in development important of Ryan. think domestic market obviously, to One think is as add this I'd element when well about that, interesting national the and security we U.S.

defense chain the mine back States. magnets have for that in the manufactured necessity in be those to to purchasing a been United site the So way supply basically are that the all

product we've with that and top actuator way we've that the seen minimize are cost And We where designers robotics dilemma have work the applications that few ongoing sort think benefits that this that, to we one off-the-shelf are very positioned we as the we I motor of across to into. execute the are. so got of that of defense is very sell to speak execute national develop we to have those us our magnets. is on are think structure can that on And this. we don't and manufacturability And conversations I innovator's and the mixes of on there need position of maximize that thing well companies

Kevin Estok

landscape. my change read political likely Okay. second just a or are this sense And Congress Senators team's week's materials after and to any maybe after your I critical election, people Great. likely election? wanted of maybe less the in mean in this the mix magnet just or get Bill more on just week's question, of that to a engage potentially I

James Litinsky

bringing Jim. say country. think the a this overwhelming the is I really I takeaway I the election This First America -- build on I What Sure. think key is, election, from helping would worker agenda in focused mandate. on very who the people that, this mean, it's on stuff week's is support is American obviously, really the this

the so of approach. First together the very is people. piece it I now from overwhelming a -- what sort onshoring. But And is who've I America American jobs mandate of spectrum think I historically, sort a sides come next it's of both broad And of this, was this of have we really form the are to which and really focused on only people aisle think not think now an

sort effective go. outcome, be President wave, Trump hard negotiating will really he's in at going a you because think given particularly it's to with getting the sort and drive it's and to an to an is to know particularly Senate it the President of things able And and and Red where was it to -- know never think Trump, these I so And agenda. of so that's very that but what I House, come going shape

the in. And so via which going know supply we industry it's security if doubt America, ours, it's don't policy. via back national And to are like sort going don't no in in chain, what want type sites be tariffs. state. red of be critical -- in champions tax materials, there's to are we a We people operate of to is absolutely we to we have support bringing blue a jobs if know in also a center But that main state, I exactly companies would say state We we three and operation. operate the operate purple the in of of in that

they're operators, the we're said sort to really the people is so are of of last maintenance I And And what we've to the specifically that it in is has our level playing them, then make electricians, on but get we over compete want have engineers. incredibly we like competitor. We center of few help. field. against I the -- workers, think compete think really that this trying against we missed point last I'll sort tough years, industries repeatedly mean we ours We like an to want been certain thing China. a And don't that. is

this this not level is academic tariffs don't good or are an a whether currently or So is we about playing argument field. not compete in

to And is that the going for be think to driven field years. our -- policy awesome like playing in extent us. coming set it's It's so particularly for leveling the few opportunity to companies I that

Operator

Our Davidson. Summerville from with next Matt will question come D.A.

Matt Summerville

you me okay, Can hear guys?

Ryan Corbett

Yes.

James Litinsky

we you. Yes, hear

Matt Summerville

Cool. Okay.

Any format. similar I've business sort when I refining assuming QX. Sorry, this gross environment out first of margin of in positivity, that it's mentioned in positive, become a today? on EBITDA business call of prognostication the sort Anyways, you done a some pricing the believe, time can

Ryan Corbett

Matt, a question. Yes, it's great

Obviously, think thing pulling we gross the results you're I when midstream, from obviously, profit right, our margin think is for to the consolidated that significant faster more away comparing assets. Mountain the gross about from we're sales, the go sales. the concentrate those we on generate Pass basis, and on a high

go, you're you those of And the right? so sacrificing there is push-pull, And sort the margins. faster

we is guided into if of this just that but the sort on the that different with production too production depends of we quarter progress of in continued far out the in growth expect that EBITDA confidence would that messaging business I this sight Certainly, of the structure important to. it, positive in driving and thing we're it driving profit line on gross go think growth system. cost is factors exiting saw behind I cost not that and positive QX, all for

look at some you gross amount the sales our concentrate EBITDA that to will margin continue If we're move continue if here then certainly, on for obviously side, in targets we into of looking be XXXX, very totality, we positive out have profitable. profitability on magnetics. our hitting for to And will separation

And pretty period, and so versus put full look excited at we're that together you all that and of the you compares about a 'XX 'XX. year we'll have in

Matt Summerville

Got I And driving level to sure what's like be want as in sort sure to make to a it. And then pause to nice a then NdPr on of similarly, a jump it I basis, quarter-on-quarter going understand, make I follow-up, what's of want sequential kind there's flattish of sounds a drive I a Michael going understand QX? as what then described production. or that.

Ryan Corbett

of longest But Sure, I'll answer the explain operations. about let in the had Michael finance I'll our really it's do uptime. of referenced. side simple the is shutdowns one Michael and as it, Matt. We October,

so cetera, we course, process, out to of QX, pieces you shutdown the hit the October. throughout when new and equipment, And in pause stride we optimizations, of do our as into in a shutdown quarter then, continue that cetera, we et of operation. necessitated introduce our et And as come maintenance in that we

ramp we instability. up, back we bit introduce As a of

difficult this. will going points behind you'd a But taking time think any QX, just of other proof real like a again, add snapshot And a show obviously. progress, that that? Mike, to in be to is I But on itself so headline ramp it's of always much those those numbers where through in of better specifics and in are issues quarter one

Michael Rosenthal

just add of to part part of have de-inventory circuit. as the some One to other we thing shutdowns is the of

increase we that seeing And I So remarks, extent I to expect restart. quarter. when we more to we And in we that we'll effect some we're uptime, better throughput. to have expect that to mentioned stabilize as Overall, continue. the the of look as WIP sort to that, rebuild the that, first in take prepared

into see challenges as issue one emerge we'll highs. a enter address new very we we year, and confident that As address we're other previously But we new those. underappreciated the

Operator

Our next BMO. question will with come from Jones Greg

Gregory Jones

Can hear you me?

James Litinsky

Yes.

Gregory Jones

Great.

had I So questions. two

The understanding next could just of XXx be potential annual regarding were what first have as and you year view beyond? credit a the rules on production tax into the you credit. dollar announced. amount finalized Obviously, recently move But the is do the

Ryan Corbett

I'll Greg. short is importantly, the one of final The need details bit the important, answer most elements significant. Sure, utilize that. is to unique regs. And take this, the a are But critical we is obviously, that new of of of are always the goods of of our of period number tax in time, And tremendous cost our cetera, sold not certain cetera. there a calculation, calculated nuances book often cost a are sold. goods et that until not et

follows. I think as high level is the

filings been. sort should our level, of seen the impact last production like. of in effectively that has on At regs what in ultimate preliminary a we of XX% what half were couple high the quarters benefit versus of look would the impact with the cost estimating sort over You've cut the impact the the

a providing we NdPr we're sold estimate now, right products are of for XX% qualifying, of or since think the simple it i.e., integrated I expect be COGS so cost answer our is oxide. the about just outlook not And of fully that goods to operations

beneficial important So a really change. and

that to The hopeful production a this at, these new type growth like drive looked things we get and about a moments continued that move credit. been production things be always that into I It on frankly, as think us new as few these sorts is of Jim business. so incentivize really incentivize best to incentivize something we're spoke things works ago we the of scaled more. the view lot producers continue of to Congress, that way in think Our should tax there has and to is reward

Gregory Jones

second some there the the then are around of some Myanmar on question, issues Do more There's country. or in media that demand impacting events that MP's seem of been the increased result? going That's see happening a and great. chains prices on are potential be macro products one. as in business exports And country the reports you any to a for impact higher for or from supply or the your experience and that

James Litinsky

Greg. Sure,

[indiscernible] to into that knows, of been has any lot everyone an that, from down. region can level Myanmar the a to There's set, of So just certainly that supply been that opposition some create of the China. have so group mining noise shut reports goes military around controls significant the volatility. a territory. and There's impact does now there obviously supply of Myanmar that represent border There amount

of something I I to going kind associated always area who that knows. But it commodities the course, medium my think answer the given prices, that of because, prices, I'm comes that that people going -- it's is the you is because there caused is -- certainly more that of there. country, country do of control give is has near-term when in more production of oversight this, problems to greater think term be particularly longer sort the to of with not that bad, that and from environmental more and in much big area a can production particularly health the push area for of Google there's and you

on that, area of control for supply restriction extent the I people of that, hurts just will natural kind so people. And getting are the be think that bad that particularly a to of that do world that more supply, illegal

these in a without upward the to create I impacts say some is production. normalized is a does there's esoteric -- that be of market. term, medium -- of would This short kind for to the will it what the term, last essentially of markets where thing like market. not it and think do is somewhat in And XX/X tend in pressure of oil how think pricing certainly is I more it's long clue cost real markets a pricing the an I on so And

And if so my that or reaction you or the But point not occur certainly see guess can material actually, a that. And -- actually sometimes things month is the it's will think like of impact, price that X I never. in there is, in the X or yet. not X sort price is

of highlights lot not, again. And term in the clue. upward medium something chain think it for space. volatility security it development But or the be once bullish near term, could that -- have a so no may a of creates obviously, And be in importance the lastly, it I that it's I the supply may

Operator

JPMorgan. from question next with Peterson come Our Bill will

William Peterson

Maybe in of of walk on side through on seeing backdrop terms I'm demand pricing green of flat about can We've markets the restocking, get that end against months and Trying been of shoots of heard wondering the seeing to the where end supply, destocking. some us in you if demands? flip of kind market now. NdPr sense of for has a you're on terms you're some what then the X

James Litinsky

Yes.

We've other roughly Just And the of sort situation think the then mentioned hybrids. as been I correlated that has you industries, have cetera. XX% What is old would demand reminder, a stable. it HVAC, -- while. very last Chinese EVs, sort when recent power about XX I certainly, space, remember tough. we macro for XX% stable manufacturing months, the been over look demand in is prices high-growth at if in very a standard months, et tools, our line of certainly, is electrification, with mean of Chinese say is, the

kind parlance, it's months been for of think bottom bouncing our a I around of number now. the in

be has it's that impact because the I don't they're weeks, price and it's but to to -- But before, a rare think stimulus China. big with you been think whether in not I enormous this the recent may the that what the will things yet, us going announced these Obviously, impact the joke in of an not that or industry prices, happen or determinant of to too earth be. heard of wildcard on seeing have in again, will think I respect is real there's tell soon in up it it's either do lag, tend a say down. amount material they're going

stimulus remark it's sort of it's lead we we the but of reaction, there's recent prepared its that pray prices, for that we've but moment about coming. But too it, believe months, you a a that and sort caught system tough pretty remarks, lack volatile be of an who a that's guess, coming background. this the and but can't this, I uptick And works say, be been course, lastly, anecdotal, much et way have I through for just where again, cetera, knows? if been will referenced -- of for for upward Of course, wait there and few guess there I I there way higher in seen of a and say reach-outs, some stable Chinese is better there's to that kind would if year. But the over us the me. a I is my would then specific, say but to is

William Peterson

where on customers outside these the talking of a there from? side. And maybe way these what any are kind coming to products your about of to requesting customers they most I Is about were of I are China? of comment guess kind markets are midstream number wanted are quantify from of And geographies requesting samples, customers represent? importantly, you double-click What earlier engagements

James Litinsky

great So question.

heard this, for of sure. largest You worth OEMs now X may the it's effectively We sell have us the non-Chinese. repeating mention to world, X directly in but

sort we a went real supply to so of the right? now is largest that issues, -- it's a they relationships a COVID going Are know. just is gee, was were kind care? of or of I material. household of And the of, know, when reach really in you recall thing. So supply and in interesting what X would that height in OEMs, seeing past think say the lot we And with you we're ago, a are call when us years would chain? a It back -- was have you we'll going real that. That we OEMs And where development it, sort up for recent, the direct thing few happened, months names -- we there OEMs year, the chain has public, not if to the that talk of of that those are

particularly And demand a a in eventually in expect of the that given commenced tools we've up thing and hybrids space, that so fact down Chinese those I or pick just to electrification, macro, is bouncing ultimately, power relationships basic if we too. been sort good cycle think have around are robotics that nice, our

good development, a already that's it's and occurred. So

Operator

from question Ben will Kallo next come with Our Baird.

Ben Kallo

you might types to able customers Congratulations are Is or the different going talk progress. magnets samples several I of to then when on was well? of your confused, it initial going all about facility Jim, others be for as provide looking sold production but everything to I at to Or GM. just you be magnet thought the and samples, other GM?

Ryan Corbett

our clear we've it's I Ben, preponderance Ryan. point. spoken the Yes, I'll of for volumes at this been take are that. think

is conversations our earlier, focus, What And which continue course, just though, mentioned important, think of that General on. various foundational main so customer, is go our industries, is of in automotive, I for Motors. I executing not is some to the

I many times demand think not Jim it we are said before, constrained.

We are supply constrained.

from have, that across we industries. I dialogue healthy And perspective, so very continue think, to

but customers. a is General moment, we for qualification lot on engage Motors of continue terms the focus and potential certainly In other metal et cetera, to with our of deliveries,

James Litinsky

no focus is national which into it government. I longer going first executing next currently, that you think the head Ben, adding that are get these about, look, But on the foremost would talked term, we if specifically year, around given GM a essentially of in obviously, particularly just given business Jim, items, regardless. on And be mean, trends we our is pitch some for I as new to and credit this for security fever robotics and mandate that. to

our kind over positioned you'll customers able and well to what you'll to of we'll come think extent that it we're facility -- there positioned be the the for we soon. hopefully, variety time business. a grow see to produce to is see sometime -- that is of But be want I well to

Ben Kallo

the And Jim, policy playing not you being front, a on mentioned field. on level

on to As to had playing on how to kind what is Or your wish? your of representatives you you field talk wish want and get do if administration, you level try the list? a

James Litinsky

in not the -- policy Jan I plays are mentioned to under rare earlier credits answer obviously. target. to But doesn't tax with sort have out Sure. right? that's enhancement this shakes that specifically sources 'XX, or with whether competitor think it's But in example, to more X That's tax that of against only the that that think cost a a side for defense the the we're regardless separation, on a tough to of or effectively of of the earth other going we're requirements. that Yes, I a capital, we the directly of of reagents, however mean, respect a competing only, the -- probably lot question lot there'll iterations new you policy starting sure. a chain tariff your else -- competitor challenge. tariff-related because be challenge. It have where doesn't the competing against depends and question, world a one if of this If of supply and of of how we're a be cost the stream an to credits a I simply defense only what if we that's on wish, it's or Ryan are out, it for

business. My something will be think that our of to there's to I is, going grand just so help is. some know will guess a bargain some variety I our what that are kind And that accelerate of though, there's things drive business. going don't it that

for. specifically So don't to I know what even wish

Operator

call. This concludes the the back hand Litinsky to will I today's Mr. question-and-answer portion closing now of remarks. call for

James Litinsky

I'm proud of just as Well, outstanding Thank everyone. execution show, you. this quarter the business. was across the really an you, the team. thank Obviously, results

you all forward work and will And to so look seeing to next we get quarter. back

MP Materials (MP) 7 Nov 242024 Q3 Earnings call transcript