MP Materials Shares Drop 4% on $820M Volume, Ranking 106th Despite Record Rare Earth Output Surge

MP Materials (MP) fell 4.04% on August 19, 2025, with a trading volume of $0.82 billion, ranking 106th in the stock market. The rare earth producer reported record production levels in Q2 2025, achieving 597 metric tons of neodymium and praseodymium (NdPr), a 119% increase year-over-year and surpassing its Q1 2025 record of 563 metric tons. Total H1 2025 NdPr output reached 1,160 metric tons, reflecting a 188% year-on-year growth. Rare Earth Oxide (REO) production also rose to 13,145 metric tons in Q2, driven by operational optimizations at Upstream 60K. The company’s Materials segment generates revenue from rare earth concentrates and NdPr products, with growing sales to Asian markets expected to shift revenue composition toward higher-margin NdPr oxide and metal. Analysts note that MP’s 2025 earnings forecast remains at a projected $0.35 loss per share, though 2026 estimates indicate a potential turnaround to $0.97 profit per share. Despite a 362.9% year-to-date rally, MP trades at a forward price/sales multiple of 26.05X, significantly above the industry average of 1.15X.

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