#5: MP Materials

Rare earths are one of those things that “smart” people talk about while the rest of us pretend to understand. Now is the time to catch up.

Here’s what you need to know about rare earths.

Firstly, why should I care about rare earths?

Electric cars. Wind turbines. Drones.

Magnets created from rare earths power these and much more.

Many critical devices (think screens and smartphones) and infrastructure, as well as advanced military and medical tech, rely on rare earths.

Okay… So what exactly are these things?

• Rare earths are a series of elements that are found in the earth’s crust

• Extensive processing is required to extract rare earths from the mined ore.

• Rare earths have unique magnetic and electrochemical properties that are useful for creating magnets with greater efficiency, performance, and durability.

MP Materials vs. China

Demand for rare earths is increasing rapidly as the world electrifies more and more. Rare earths are a crucial ingredient for many electronic items.

80% to 90% of the rare earths mined and processed today come from China. There is just one rare earths mining and processing site in North America, and it is run by MP Materials.

How did MP Materials come to run this unique site?

James Litinsky is the CEO of MP Materials (NYSE: MP). MP Materials is the company that runs Mountain Pass - the site of a rare earth deposit and mine.

Mountain Pass is in California, USA, and was first started as a mine in 1952. It has one of the world’s highest concentration deposits of rare earths.

Until the 1990s, Mountain Pass was the world’s source of rare earths. But then China started establishing itself as the global supplier of rare earths. Mountain Pass fell into hard times, and MP Materials acquired it out of bankruptcy in 2017.

They’re on a mission 🎯

MP Materials is bringing this piece of the supply chain back into the USA. This is a key part of their mission.

They increased the workforce at the site, restarted the mining, and started selling rare earth concentrate.

This rare earth concentrate was an intermediate step. MP Materials is on the way to fully restoring the processing capabilities at Mountain Pass.

The final goal is to be able to fully manufacture rare earth metals and permanent magnets in the USA.

In 2020, MP Materials was listed on the New York stock exchange.

What makes them different❓

MP Materials focuses on sustainability, onshoring of jobs, national security, and keeping costs low.

MP Materials keeps costs low by co-locating all the pieces of its operation. The concentration of rare earths at the Mountain Pass site gives MP Materials a significant advantage.

Mountain Pass uses state-of-the-art systems to ensure that it is a zero-discharge facility.

What the video below to get a feeling for the drive and passion that motivates the company.

MP Materials is on a multi-part mission to restore the Mountain Pass site to its former glory.

They will play a crucial role in the supply chain of tomorrow. And they are determined to protect the USA and our environment.

Thanks for reading Arena

Please share your thoughts and feedback by replying to this email. I respond to every email

~ Mordi Goldstein

PS: If you were forwarded this email, you can subscribe here.