en.Wedoany.com Reported - On August 6, U.S. rare earth producer MP Materials disclosed that during the second quarter ended June 30, the company signed a long-term offtake agreement for separated gadolinium with a U.S. aerospace and defense enterprise. The customer name and agreement scale have not been disclosed. The new agreement adds separated gadolinium to the company's commercial supply portfolio and expands its heavy rare earth business.
Gadolinium is one of the elements contained in the SEG+ concentrate from MP Materials' Mountain Pass mine rare earth separation process. The company began producing and stockpiling this type of concentrate in late 2023, which also contains elements such as samarium, europium, terbium, dysprosium, and holmium, providing a raw material foundation for the subsequent expansion of medium and heavy rare earth separation products.
MP Materials is building heavy rare earth separation capabilities at the Mountain Pass mine, with related facilities capable of processing approximately 3,000 tons of raw materials annually. The first-phase separation capacity for terbium and dysprosium is designed at 200 tons per year. The company plans to initiate initial refined production of terbium and dysprosium in the second half of 2026, and will continue to expand separation capabilities for products such as samarium thereafter. The specific delivery start date for this gadolinium offtake agreement has not been disclosed, and it cannot be assumed that the product has entered the batch delivery stage.
The project also receives industrial policy support from the U.S. Department of Defense. The two parties previously signed a cooperation arrangement under which the Department of Defense provided a $150 million loan to expand the heavy rare earth separation facilities at the Mountain Pass mine. The customer signing this agreement is an unnamed U.S. aerospace and defense enterprise, which constitutes a separate commercial relationship from the Department of Defense-supported project.
In the second quarter, MP Materials produced 840 tons of neodymium-praseodymium products, up 41% year-over-year; and sold 1,006 tons, up 127% year-over-year. The long-term gadolinium offtake agreement extends its customer structure, which was previously dominated by neodymium-praseodymium and magnet products, to include specialty rare earth materials. However, contract revenue, purchase volumes, and delivery schedules remain subject to subsequent performance arrangements.
