MP Materials Corp is experiencing its strongest period.

MP Materials Corp (NYSE:MP) reached a record level of 721 metric tons in the production of NDPR oxide, achieving a 21% increase compared to the previous quarter and a 51% increase year-over-year.

The company's sales volume showed strong growth on both an annual and quarterly basis. MP Materials Corp plans to bring its heavy rare earth circuit online by mid-2026, which will enable it to produce 10,000 metric tons of high-performance NDFEB magnets annually.

A $40 million advance payment was made for the production of magnets from recycled materials as part of a partnership with Apple. A total of $200 million in support is expected.

The company aims to return to profitability in the fourth quarter of 2025. This goal will be supported by a long-term Purchase Price Agreement with the Department of Defense, providing visibility on profitability and establishing an economic foundation.

The absence of concentrate revenue throughout the quarter was largely offset by an increase in sales of separated products. However, semi-annual maintenance downtime has led to fluctuations in production results.

The implementation of new equipment and systems at the Independence facility is a significant issue, carrying risks of integration and optimization. There is a lag between increases in production volume and sales, which may affect the immediate capacity for revenue recognition.

The company is facing challenges in third-party material securing for heavy rare earth production. Despite ongoing negotiations, no confirmed long-term supply options are currently available.

The board of directors noted a significant increase in supply chain engagement across various sectors, including automotive and aerospace, beyond major customers like Apple and GM. For MP Materials Corp, customer focus is highlighted by the 100% consumption allocation solidified through the agreement with Apple.

Finally, how MP Materials Corp will cope with the cyclical risks following the 10-year support program offered by the Department of Defense is also worth noting. The company forecasts explosive growth in rare earth magnets through physical artificial intelligence and aims to establish a solid industry to avoid supply chain pressure from China.