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Q1 2025 Results May 8, 2025
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2 Safe Harbor This presentation contains certain statements that are not historical facts and are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of the words such as “estimate,” “plan,” “shall,” “may,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “seek,” “will,” “target,” or similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding engagement with industry and the government and outcomes related to this engagement, the price and market for rare earth materials, the continued demand for rare earth materials and the market for rare earth materials generally, future demand for electric vehicles and magnets, estimates and forecasts of the Company’s results of operations and other financial and performance metrics, including NdPr oxide production and shipments, expected NdPr oxide production and shipments, the Company’s share repurchase program, the expected cash flows of the early production of magnetic precursor products in Stage III and associated expected magnetic precursor products prepayments and timing thereof, the expected timing for receipt of the 48C tax credits, the expected capital expenditures in Stage II and Stage III, the Company’s ability to control costs and expenses, the Company’s Upstream 60K strategy, including statements regarding the timing, costs and ability to increase REO production, and the Company’s Stage II and Stage III projects, including the Company’s ability to achieve run rate production of separated rare earth materials and production of commercial metal and magnets. Such statements are all subject to risks, uncertainties and changes in circumstances that could significantly affect the Company’s future financial results and business. Accordingly, the Company cautions that the forward-looking statements contained herein are qualified by important factors that could cause actual results to differ materially from those reflected by such statements. These forward-looking statements are subject to a number of risks and uncertainties, including changes in trade policy in the United States, China or other countries, including the implementation of new tariffs, and the material adverse impact on the Company’s business and results of operations as a result of these changes in trade policy; the increased importance of markets outside of China and the Company’s ability to sell additional rare earth products in these markets; uncertainties relating to our commercial arrangements with Shenghe Resources (Singapore) International Trading Pte. Ltd., (“Shenghe”) an affiliate of Shenghe Resources Holding Co., Ltd., a global rare earth company listed on the Shanghai Stock Exchange, including relating to our recent decision to cease shipments of rare earth concentrate to China; uncertainties regarding our ability to resume shipments to, or renew our offtake agreement with, Shenghe; potential changes in China’s political environment and policies; potential changes in China’s political environment and policies; uncertainties relating to significant political, trade, and regulatory developments; uncertainties related to the outcome of engagement with industry and government; fluctuations and uncertainties related to demand for and pricing of rare earth products; changes in domestic and foreign business, market, financial, political and legal conditions; changes in demand for neodymium-iron-boron (“NdFeB”) permanent magnets; the effects of competition on the Company’s future business; risks related to the Company’s Upstream 60K strategy, including delays in completion, unexpected costs and expenses and timing for obtaining regulatory approvals; risks related to the rollout of the Company’s business strategy, including Stage II and Stage III, and the timing of achieving expected business milestones in Stage II and Stage III; risks related to the Company’s Stage II operations and the Company’s ability to achieve run rate production of separated rare earth materials; risks related to the Company’s long-term agreement with General Motors, including the Company’s ability to produce and supply NdFeB magnets; risks related to expected sales of separated NdPr oxide due to various risks, including demand and pricing for separated NdPr oxide; risks related to the Company’s ability to develop magnetic precursor products in Stage III, including production delays; risks related to the Company entering into agreements with customers for prepayment of magnetic precursor products, including NdPr metal; risks associated with the terms of the 3.00% unsecured senior convertible notes due March 2030 (the “2030 Notes”); risks related to the share repurchase program and whether it will be fully consummated or will enhance long-term stockholder value; risks related to current and future governmental and environmental laws, regulations, licenses or legal requirements; and those risk factors discussed in the Company’s filings with the Securities and Exchange Commission, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other documents filed by the Company with the Securities and Exchange Commission. If any of these risks materialize or the assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. The Company does not intend to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this earnings release may not occur.
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3 This presentation references certain non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income (Loss), Adjusted Diluted EPS, and Free Cash Flow, which have not been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). MP Materials defines Adjusted EBITDA as GAAP net income or loss before interest expense, net; income tax expense or benefit; and depreciation, depletion and amortization; further adjusted to eliminate the impact of stock-based compensation expense; initial start-up costs; transaction-related and other costs; accretion of asset retirement and environmental obligations; gain or loss on disposals of long-lived assets; gain or loss on early extinguishment of debt; other income or loss; and other items that management does not consider representative of our underlying operations. We define Adjusted EBITDA Margin as our Adjusted EBITDA divided by our total revenue. MP Materials defines Adjusted Net Income (Loss) as GAAP net income or loss excluding the impact of stock-based compensation expense; initial start-up costs; transaction-related and other costs; gain or loss on disposals of long-lived assets; gain or loss on early extinguishment of debt; change in fair value of derivative instruments; and other items that management does not consider representative of our underlying operations; adjusted to give effect to the income tax impact of such adjustments. MP Materials defines Adjusted Diluted EPS as GAAP diluted earnings or loss per share excluding the per share impact, using adjusted diluted weighted-average shares outstanding as the denominator, of stock-based compensation expense; initial start-up costs; transaction-related and other costs; gain or loss on disposals of long-lived assets; gain or loss on early extinguishment of debt; change in fair value of derivative instruments; and other items that management does not consider representative of our underlying operations; adjusted to give effect to the income tax impact of such adjustments. In addition, when appropriate, we include an adjustment to reverse the impact of applying the if-converted method to our 2026 Notes if necessary to reconcile between GAAP diluted earnings or loss per share and Adjusted Diluted EPS. When applicable, adjusted diluted weighted-average shares outstanding reflect the anti-dilutive impact of our capped call options entered into in connection with the issuance of the 2030 Notes. We define Free Cash Flow as net cash provided by or used in operating activities less additions to property, plant and equipment, net of proceeds from government awards used for construction. You can find the reconciliation of these measures to the most directly comparable GAAP measures in the Appendix. MP Materials’ management uses Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income (Loss), and Adjusted Diluted EPS to compare MP Materials’ performance to that of prior periods for trend analyses and for budgeting and planning purposes. MP Materials believes Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income (Loss), and Adjusted Diluted EPS provide useful information to management and investors regarding certain financial and business trends relating to MP Materials’ financial condition and results of operations. MP Materials’ management believes that the use of Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income (Loss), and Adjusted Diluted EPS provides an additional tool for investors to use in evaluating projected operating results and trends. We believe Free Cash Flow is useful for comparing our ability to generate cash with that of our peers. Free Cash Flow is not meant to be considered in isolation or as an alternative to cash flows from operating activities and does not necessarily indicate whether cash flows will be sufficient to fund cash needs. MP Materials’ method of determining these non-GAAP measures may be different from other companies’ methods and, therefore, may not be comparable to those used by other companies and MP Materials does not recommend the sole use of these non-GAAP measures to assess its financial performance. Management does not consider non-GAAP measures in isolation or as an alternative or to be superior to financial measures determined in accordance with GAAP. The principal limitation of non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in MP Materials’ financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, management presents reconciliations of such non-GAAP financial measures to the most directly comparable GAAP financial measures. Use of Non-GAAP Financial Measures
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4 Materials • Record NdPr oxide production of 563 MT — a 36% sequential increase • Second highest quarterly production of REO – Upstream 60K optimizations drove improved recoveries • Strong NdPr oxide and metal sell-through • Ceased sales of concentrate to China; stockpiling on site Highlights Magnetics • Commenced commercial metal deliveries • Generated $5.2 million in revenue and positive Segment Adjusted EBITDA • Initiated GM magnet validation process • Received third $50 million customer prepayment on April 1st • Commercial magnet production on track for year- end • Intensifying engagement from industry and government
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Financial and Operational Overview
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6 $48.7 $61.0 $60.8 Q1 2024 Q4 2024Q1 2025 Financial Metrics - Consolidated Adjusted EBITDA driven by ramp of separated product revenues with initially subscale production negatively impacting cost of sales partially offset by EBITDA generation in the Magnetics Segment Earnings comparisons impacted by increased interest expense from issuance of 2030 convert, lower interest income, higher depreciation expense as assets entered service over the last year and the change in Adjusted EBITDA Comparable Financial Metrics — Sequential and Year-over-Year(1) Revenue increase year-over-year driven by ramp of separated product sales as well as initial magnetic precursor product sales Revenues $(1.2) $(10.7) $(2.7) Q1 2024 Q4 2024Q1 2025 Adjusted EBITDA(2) $(0.04) $(0.12) $(0.12) Q1 2024 Q4 2024Q1 2025 Adjusted Diluted EPS(2) 1. All figures in millions except for per share amounts. 2. See Appendix for reconciliation of Adjusted EBITDA and Adjusted Diluted EPS to the most directly comparable financial measure prepared in accordance with U.S. GAAP. 2024 2025
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7 Operating Metrics - Materials Segment 11,151 11,478 12,213 Q1 2024 Q4 2024 Q1 2025 $4,294 $4,717 $4,808 Q1 2024 Q4 2024 Q1 2025 9,332 7,803 6,264 Q1 2024 Q4 2024 Q1 2025 Comparable Operational Metrics — Sequential and Year-over-Year REO Production Volumes (MT) REO Sales Volumes (MT) Realized Price ($/MT REO) 2024 2025 $62 $51 $52 Q1 2024 Q4 2024 Q1 2025 134 468 464 Q1 2024 Q4 2024 Q1 2025 131 413 563 Q1 2024 Q4 2024 Q1 2025 NdPr Sales Volumes (MT) NdPr Realized Price ($/kg) NdPr Production Volumes (MT) Production volumes primarily driven by improved mineral recoveries and high uptimes Concentrate sales volumes driven by higher consumption into midstream circuits Realized pricing improved slightly sequentially due to higher NdPr market prices Realized pricing declined year-over-year in-line with lagged market pricing; expect mid-single-digit % increase in Q2 given lagged realizations Sales volumes driven by increasing production and timing of shipments NdPr production volumes increased with further progress on process optimization and ramp Upstream KPIs Midstream KPIs
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8 $48.7 $61.0 $55.6 Q1 2024Q4 2024Q1 2025 Financial Metrics - Segments Year-over-year Materials Segment Adjusted EBITDA decline driven by ramp of separated product revenues with initial subscale production negatively impacting cost of sales Comparable Financial Metrics — Sequential and Year-over-Year(1) Year-over-year Materials Segment revenue increase driven by ramp of separated product sales volumes Revenues $7.3 $(1.3) $3.8 Q1 2024Q4 2024Q1 2025 Segment Adjusted EBITDA(2) 1. All figures in millions. 2. Adjusted EBITDA on a consolidated basis, which is a non-GAAP financial measure, includes Corporate expenses and other. Corporate expenses and other were $5.9 million and $6.9 million for the three months ended March 31, 2024 and March 31, 2025, respectively, and $6.3 million for the three months ended December 31, 2024. See Appendix for a reconciliation of Adjusted EBITDA to the most directly comparable financial measure prepared in accordance with U.S. GAAP. 3. N/A = Not applicable as there was no Magnetics Segment revenue during these periods. 2024 2025 Materials Segment Magnetics Segment $(2.7) $(3.1) $0.5 Q1 2024Q4 2024Q1 2025 Segment Adjusted EBITDA(2) Magnetics Segment Adjusted EBITDA improvement driven by commencement of magnetic precursor product sales $5.2 Q1 2024Q4 2024Q1 2025 Segment Revenue(3) Magnetics Segment revenue driven by the initial production and sales of magnetic precursor products at Independence N/A N/A
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9 $0 $20 $40 $60 Unit Cost Bridge Current versus expected costs Fixed Costs & Overhead Variable Costs Note: Estimates include portion of 45X impact that would be recognized in cost of goods sold Utilization / Fixed cost absorption Q1 2025 Target NdPr Production Cost ($/kg) Potential future efficiencies from Chloralkali
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Appendix
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13 P&L MP Materials Corp. and Subsidiaries Condensed Consolidated Statements of Operations For the three months ended March 31, For the three months ended December 31, (in thousands, except share and per share data, unaudited) 2025 2024 2024 Revenue $ 60,810 $ 48,684 $ 60,986 Operating costs and expenses: Cost of sales (excluding depreciation, depletion and amortization) 48,831 35,594 58,263 Selling, general and administrative 24,166 21,267 19,073 Depreciation, depletion and amortization 21,384 18,385 22,118 Start-up costs 976 1,287 1,397 Advanced projects and development 474 4,206 1,164 Other operating costs and expenses (income), net (243) 377 2,933 Total operating costs and expenses 95,588 81,116 104,948 Operating loss (34,778) (32,432) (43,962) Interest expense, net (7,615) (2,857) (6,762) Gain on early extinguishment of debt — 46,265 6,646 Other income, net 15,218 12,657 10,117 Income (loss) before income taxes (27,175) 23,633 (33,961) Income tax benefit (expense) 4,527 (7,144) 11,619 Net income (loss) $ (22,648) $ 16,489 $ (22,342) Earnings (loss) per share: Basic $ (0.14) $ 0.09 $ (0.14) Diluted $ (0.14) $ (0.08) $ (0.14) Weighted-average shares outstanding: Basic 163,764,345 174,556,850 163,379,389 Diluted 163,764,345 186,791,826 163,379,389
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14 Reconciliation: Net Income (Loss) to Adjusted EBITDA 1. Principally included in “Selling, general and administrative” within our unaudited Condensed Consolidated Statements of Operations. 2. Included in “Start-up costs” within our unaudited Condensed Consolidated Statements of Operations and excludes any applicable stock-based compensation, which is included in the “Stock-based compensation expense” line above. Primarily relates to certain costs incurred in connection with the commissioning and starting up of our initial magnet-making capabilities at Independence prior to the achievement of commercial production. These costs include labor of incremental employees hired in advance to work directly on such commissioning activities, training costs, costs of testing and commissioning the new circuits and processes, and other related costs. Given the nature and scale of the related costs and activities, management does not view these as normal, recurring operating expenses, but rather as non-recurring investments to initially develop our magnet-making capabilities. Therefore, we believe it is useful and necessary for investors to understand our core operating performance in current and future periods by excluding the impact of these start-up costs. To the extent additional start-up costs are incurred in the future to expand our separations and magnet-making capabilities after initial achievement of commercial production (e.g., significantly expanding production capacity at an existing facility or building a new separations or magnet manufacturing facility), such costs would not be considered an adjustment for this non-GAAP financial measure. 3. Pertains to legal, consulting, and advisory services, and other costs associated with specific transactions, including litigation matters, potential acquisitions, mergers, or other investments. For the three months ended March 31, 2025 and December 31, 2024, amounts are principally included in “Selling, general and administrative” within our unaudited Condensed Consolidated Statements of Operations. For the three months ended March 31, 2024, amount is principally included in “Advanced projects and development” within our unaudited Condensed Consolidated Statements of Operations. 4. Included in “Other operating costs and expenses (income), net” within our unaudited Condensed Consolidated Statements of Operations. 5. Amount is the result of the Company adjusting its estimated cash flows and timing for its existing environmental obligation during the fourth quarter of 2024. 6. Amount for the three months ended March 31, 2024, pertains to the gain recognized on the retirement of 2026 Notes in March 2024 in connection with the issuance of 2030 Notes. Amount for the three months ended December 31, 2024, pertains to the gain recognized on the debt exchange in December 2024 whereby the Company exchanged a portion of its 2026 Notes for new 2030 Notes. 7. Principally comprised of interest and investment income and changes in fair value of derivative instruments. For the three months ended March 31, For the three months ended December 31, (in thousands, unaudited) 2025 2024 2024 Net income (loss) $ (22,648) $ 16,489 $ (22,342) Adjusted for: Depreciation, depletion and amortization 21,384 18,385 22,118 Interest expense, net 7,615 2,857 6,762 Income tax expense (benefit) (4,527) 7,144 (11,619) Stock-based compensation expense(1) 7,353 7,467 4,560 Initial start-up costs(2) 772 1,173 1,385 Transaction-related and other costs(3) 2,816 3,797 2,259 Accretion of asset retirement and environmental obligations(4) 373 231 234 Loss on environmental obligations(4)(5) — — 1,998 Loss (gain) on disposals of long-lived assets, net(4) (616) 146 701 Gain on early extinguishment of debt(6) — (46,265) (6,646) Other income, net(7) (15,218) (12,657) (10,117) Adjusted EBITDA $ (2,696) $ (1,233) $ (10,707)
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15 1. Principally included in “Selling, general and administrative” within our unaudited Condensed Consolidated Statements of Operations. 2. Included in “Start-up costs” within our unaudited Condensed Consolidated Statements of Operations and excludes any applicable stock-based compensation, which is included in the “Stock-based compensation expense” line above. Primarily relates to certain costs incurred in connection with the commissioning and starting up of our initial magnet-making capabilities at Independence prior to the achievement of commercial production. These costs include labor of incremental employees hired in advance to work directly on such commissioning activities, training costs, costs of testing and commissioning the new circuits and processes, and other related costs. Given the nature and scale of the related costs and activities, management does not view these as normal, recurring operating expenses, but rather as non-recurring investments to initially develop our separations and magnet-making capabilities. Therefore, we believe it is useful and necessary for investors to understand our core operating performance in current and future periods by excluding the impact of these start-up costs. To the extent additional start-up costs are incurred in the future to expand our separations and magnet- making capabilities after initial achievement of commercial production (e.g., significantly expanding production capacity at an existing facility or building a new separations or magnet manufacturing facility), such costs would not be considered an adjustment for this non-GAAP financial measure. 3. Pertains to legal, consulting, and advisory services, and other costs associated with specific transactions, including litigation matters, potential acquisitions, mergers, or other investments. For the three months ended March 31, 2025 and December 31, 2024, amounts are principally included in “Selling, general and administrative” within our unaudited Condensed Consolidated Statements of Operations. For the three months ended March 31, 2024, amount is principally included in “Advanced projects and development” within our unaudited Condensed Consolidated Statements of Operations. 4. Included in “Other operating costs and expenses (income), net” within our unaudited Condensed Consolidated Statements of Operations. 5. Amount is the result of the Company adjusting its estimated cash flows and timing for its existing environmental obligation during the fourth quarter of 2024. 6. Amount for the three months ended March 31, 2024, pertains to the gain recognized on the retirement of 2026 Notes in March 2024 in connection with the issuance of 2030 Notes. Amount for the three months ended December 31, 2024, pertains to the gain recognized on the debt exchange in December 2024 whereby the Company exchanged a portion of its 2026 Notes for new 2030 Notes. 7. Included in “Other income, net” within our unaudited Condensed Consolidated Statements of Operations and pertains to the change in fair value of the redemption feature included in the portion of the 2030 Notes that were issued in December 2024. 8. Tax impact of adjustments is calculated using an adjusted effective tax rate, which excludes the impact of discrete tax costs and benefits, to each adjustment. The adjusted effective tax rates were 17.4%, 28.8% and 20.1% for the three months ended March 31, 2025 and 2024, and for the three months ended December 31, 2024, respectively. For the three months ended March 31, For the three months ended December 31, (in thousands, unaudited) 2025 2024 2024 Net income (loss) $ (22,648) $ 16,489 $ (22,342) Adjusted for: Stock-based compensation expense(1) 7,353 7,467 4,560 Initial start-up costs(2) 772 1,173 1,385 Transaction-related and other costs(3) 2,816 3,797 2,259 Loss on environmental obligations(4)(5) — — 1,998 Loss (gain) on disposals of long-lived assets, net(4) (616) 146 701 Gain on early extinguishment of debt(6) — (46,265) (6,646) Change in fair value of derivative instrument(7) (6,997) — — Tax impact of adjustments above(8) (578) 9,701 (857) Adjusted Net Loss $ (19,898) $ (7,492) $ (18,942) Reconciliation: Net Income (Loss) to Adjusted Net Loss
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16 Reconciliation: Diluted Loss per Share to Adjusted Diluted EPS 1. Tax impact of adjustments is calculated using an adjusted effective tax rate, which excludes the impact of discrete tax costs and benefits, to each adjustment. The adjusted effective tax rates were 17.4%, 28.8% and 20.1% for the three months ended March 31, 2025 and 2024, and for the three months ended December 31, 2024, respectively. 2. For the three months ended March 31, 2024, since the 2026 Notes were dilutive for purposes of computing GAAP diluted loss per share but antidilutive for purposes of computing Adjusted Diluted EPS, within this reconciliation, we have included this adjustment to reverse the impact of applying the if-converted method to the 2026 Notes in the computation of GAAP diluted loss per share. 3. For the three months ended March 31, 2024, since the 2026 Notes were dilutive for purposes of computing GAAP diluted loss per share but antidilutive for purposes of computing Adjusted Diluted EPS, the adjusted diluted weighted- average shares outstanding exclude the potentially dilutive securities associated with the 2026 Notes. For the three months ended March 31, For the three months ended December 31, (unaudited) 2025 2024 2024 Diluted loss per share $ (0.14) $ (0.08) $ (0.14) Adjusted for: Stock-based compensation expense 0.04 0.04 0.03 Initial start-up costs — 0.01 0.01 Transaction-related and other costs 0.02 0.02 0.01 Loss on environmental obligations — — 0.01 Gain on early extinguishment of debt — (0.27) (0.04) Change in fair value of derivative instrument (0.04) — — Tax impact of adjustments above(1) — 0.06 — 2026 Notes if-converted method(2) — 0.18 — Adjusted Diluted EPS $ (0.12) $ (0.04) $ (0.12) Diluted Weighted-Average Shares Outstanding 163,764,345 186,791,826 163,379,389 Assumed conversion of 2026 Notes(3) — (12,234,976) — Adjusted Diluted Weighted-Average Shares Outstanding(3) 163,764,345 174,556,850 163,379,389