[Management View]
MP Materials announced transformative agreements with the Department of Defense (DOD) and Apple, marking a new chapter for the company. Key metrics include an 84% increase in consolidated revenue and a 45% YoY increase in REO production. Strategic priorities focus on expanding U.S. magnet manufacturing capacity and launching a commercial-scale recycling platform.

[Outlook]
Management guided a 10%-20% sequential increase in NDPR oxide production for Q3 2025. Future plans include leveraging DOD and Apple investments to cover capital needs for expansion projects and recycling.

[Financial Performance]
Consolidated revenue increased 84% YoY, driven by higher sales of magnet precursor products and record NDPR oxide output. Adjusted EBITDA improved due to higher sales and lower production costs. The company reported nearly $2 billion in cash on the balance sheet as of Q2 2025.

[Q&A Highlights]
Question 1: Can you help us understand the margins in the Magnetic segment and how they might look in the future with the 10,000 tons capacity?
Answer: Current margins are not a perfect proxy for future full production of finished magnets. However, the earnings level is expected to be consistent for the next several quarters, with a step change up once full production begins. The DOD contract guarantees a minimum earnings level, with significant upside potential.

Question 2: How comfortable do you feel with building out the ecosystem required for the new facilities?
Answer: The company has an execution culture and a core team with experience in building similar assets. Vendor relationships, engineering plans, and a DPASS DX rating will help accelerate progress.

Question 3: Can you talk about the separation facilities and the potential to process third-party feedstocks?
Answer: The company has flexibility in processing various feedstocks due to its fully vertically integrated site. The existing concentrate business is expected to ramp up to 6,000 tons per annum of NDPR oxide, with additional separation for heavy rare earths.

Question 4: How do you approach signing new magnet agreements for the 10x facility?
Answer: The 10x facility is 100% sold out, and the company is methodical in selecting customers to create win-win partnerships. The focus is on thoughtful sequencing of customers to maximize business attractiveness.

Question 5: What are the assumptions around the $650 million minimum guidance for materials and magnets?
Answer: The guidance does not assume any oxide sales to China. It includes the minimum contracted EBITDA from the DOD for the 10x facility and conservative assumptions for the build-out and ramp of Independence.

Question 6: Can you explain the investment in the hydrochloric acid facility and its impact on costs?
Answer: The HCL facility is the same as the chlor alkali facility, aimed at cost savings and redundancy. The investment will provide flexibility in sourcing hydrochloric acid and caustic soda, supporting the overall cost structure.

Question 7: How do you plan to scale the recycling facility, and could it allow for significant growth in magnetics without mining feedstock?
Answer: The initial build will satisfy internal needs and Apple's requirements. The facility is modular and can grow with the market, potentially processing third-party and end-of-life materials.

Question 8: What are the milestones for Apple’s $200 million prepayments, and any progress on the $1 billion financing for the 10x facility?
Answer: The prepayments will be disbursed on a milestone basis ahead of the 2027 production start. The recent equity raise reduces the focus on the bridge facility, with a strong balance sheet to support future growth.

Question 9: What is driving the improvement in concentrate grade, and is it necessary for hitting the stage two output targets?
Answer: The improvement is due to optimization and simplification of the circuit. Higher-grade concentrate will benefit the cost structure and throughput capability but is not necessary to hit the nameplate capacity.

[Sentiment Analysis]
The tone of the analysts was positive, with congratulations on the transformative agreements and strong execution. Management expressed confidence in their ability to meet future challenges and deliver on strategic goals.

[Quarterly Comparison]
| Metric | Q2 2025 | Q2 2024 | YoY Change |
|-------------------------|-----------------|-----------------|------------|
| Consolidated Revenue | +84% | | |
| REO Production | 13,145 metric tons | 45% higher | |
| NDPR Oxide Production | 597 metric tons | More than doubled | |
| NDPR Sales Volumes | +226% | | |
| Market Price for NDPR | +19% YoY | | |
| Cash Position | Nearly $2 billion | | |
| CapEx | $47.3 million | | |

[Risks and Concerns]
Risks include the execution of new facilities and meeting aggressive timelines. The company must manage the complexities of scaling operations and maintaining quality while integrating new technologies and partnerships.

[Final Takeaway]
MP Materials has achieved significant milestones with transformative agreements with the DOD and Apple, driving substantial revenue growth and operational improvements. The company is well-positioned with a strong balance sheet and strategic partnerships to continue its expansion and innovation in the rare earth materials market. Investors can expect continued growth and value creation as MP Materials executes its ambitious plans.