[SMM Flash News: MP to Benefit from DoD-Set Pr-Nd Price Floor] US rare earth producer MP Materials is steadily advancing its plan for commercial magnet production and is expected to achieve this goal by the end of the year. This move will enable the company to benefit from the price floor set by the US Department of Defense (DoD) for Pr-Nd. Previously, the DoD had committed to providing $400 million in funding support for MP's rare earth project as part of a grand agreement that also involves a 10-year off-take period for Pr-Nd products, ensuring a price floor of at least $110 per kg.

MP Materials has also been active in its industry collaborations. Following a strategic partnership with General Motors in 2021 to secure the supply of magnets produced and manufactured in the US, MP won the favour of Apple in July this year, with both parties signing a long-term agreement worth $500 million. The agreement includes a $200 million prepayment to promote the production of recycled rare earth magnets in the US.

In terms of performance, the company's Pr-Nd product sales reached 443 mt in Q2, surging 225% YoY, despite a slight decline from 464 mt in Q1. Meanwhile, the quarterly price of Pr-Nd also increased MoM, with the price per kg rising by $5 to $57. Benefiting from improved production efficiency, the company's rare earth oxide production increased to 13,145 mt in Q2. However, due to a decrease in exports to China, the sales volume of rare earth oxides dropped to 2,658 mt. Despi