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MP Materials CEO says rare magnets supplier is a ‘picks-and-shovels play’ for EV market


MP Materials CEO James Litinsky appeared on CNBC Wednesday, addressing confusion concerning the rare earth merchandise the corporate supplies within the electrical automobile area.

The mining firm, which owns the Mountain Pass open-pit mine in southeastern California, provides rare earth magnets to electrical automobile makers, however the magnets should not for automobile batteries, he defined.

“Whatever the battery technology is, we think we’re a picks-and-shovels play for this movement,” he informed Jim Cramer in a “Mad Money” interview.

There’s an ongoing debate round the very best battery applied sciences, whether or not lithium-ion, hydrogen or solid-state, that can be utilized to energy electrical automobiles. No matter the battery supply, the motor is what MP Materials is involved about, as their magnets are used within the motor, Litinsky stated.

“This is so key, because when people think about materials for EVs, and there’s a lot of excitement” round batteries, he defined. “Who knows what the technology will be.”

Rare earth magnets are utilized in inexperienced applied sciences, reminiscent of electrical automobiles and wind generators, to show power into movement, the corporate says. Electrification tendencies are resulting in rising demand for what’s referred to as Neodynium-Praseodymium, or NdPr. MP Materials is the biggest producer of NdPr magnets within the West and predicts it will likely be the dominant expertise for the approaching many years.

“We’re agnostic to whatever OEM wins whether its Tesla, Rivian, Arrival, GM, Ford, Volkswagen, any of them, you know, we want all of them to be successful,” Litinsky stated.

Shares of MP Materials, which got here public final month through a blank-check firm merger, surged almost 10% on Wednesday, closing the session at $28.23.



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