ADDED
These forward-looking statements are subject to a number of risks and uncertainties, including: the heightened significance of the development of the Company s midstream and downstream operations, including ramping its separation capabilities, and its ability to vertically integrate its value chain; risks related to the funding of and support for the DoW Transactions (as defined in Note 3 , Public-Private Partnership with U.S.
Department of War ), to challenges thereto and to the Company s ability, as needed, to obtain additional or replacement funding on terms acceptable to it or at all; risks related to certain restrictions imposed on the Company as a result of the affirmative and negative covenants contained in the DoW Transaction Agreements (as defined in Note 3 , Public-Private Partnership with U.S.
Department of War ); risks related to the Company s ability to meet obligations of its long-term agreement with Apple Inc.
Additionally, the Company owns and operates a rare earth metal, alloy and magnet manufacturing facility in Fort Worth, Texas ( Independence or the Independence Facility ), where the Company produces and sells magnetic precursor products and commenced the manufacturing of neodymium-iron-boron ( NdFeB ) permanent magnets in December 2025.
The Materials segment represents the upstream and midstream operations of the Company, which primarily consist of Mountain Pass, a fully integrated mining and refining facility producing refined rare earth oxides and related products.
The Materials segment generates revenue primarily from sales of neodymium-praseodymium ( NdPr ) oxide and metal, primarily sold to customers in Japan, South Korea, and broader Asia.
The Materials segment historically generated the majority of its revenue from sales of rare earth concentrate primarily to a distributor that, in turn, typically sold that product to refiners in China.
The Magnetics segment represents the downstream magnet manufacturing and related operations of the Company, which currently consist of the Independence Facility, a fully integrated metal, alloy, and magnet manufacturing plant.
The Magnetics segment began generating revenue from sales of magnetic precursor products to General Motors Company (NYSE: GM) ( GM ) in the U.S.
On July 9, 2025, the Company entered into definitive agreements with the United States Department of War (the DoW ), formerly known as the Department of Defense, (collectively, the DoW Transaction Agreements ) establishing a transformational public-private partnership with the DoW to accelerate the build-out of an end-to-end U.S.
REMOVED
These forward-looking statements are subject to a number of risks and uncertainties, including: fluctuations and uncertainties related to demand for and pricing of rare earth products; uncertainties regarding the growth of existing and emerging uses for rare earth products and the Company s ability to compete with substitutions for such products; the intense competition within the rare earth mining and processing industry; uncertainties relating to our commercial arrangements with Shenghe Resources (Singapore) International Trading Pte.
Ltd., an affiliate of Shenghe Resources Holding Co., Ltd., a global rare earth company listed on the Shanghai Stock Exchange; potential changes in China s political environment and policies; uncertainties relating to significant political, trade, and regulatory developments, including changes resulting from the change in the U.S.
The Company is also developing a rare earth metal, alloy and magnet manufacturing facility in Fort Worth, Texas ( Independence or the Independence Facility ).
See Note 20 , Segment Reporting, in the notes to the Consolidated Financial Statements for additional information.
The Materials segment operates Mountain Pass, which produces refined rare earth oxides and related products as well as rare earth concentrate products.
The Materials segment primarily generates revenue from (i) sales of rare earth concentrate, which is principally sold pursuant to the Offtake Agreements (as defined in Note 19 , Related-Party Transactions, in the notes to the Consolidated Financial Statements) to Shenghe (as defined in the Customers section below), that, in turn, typically sells that product to refiners in China, and (ii) sales of separated rare earth products, including neodymium-praseodymium ( NdPr ) oxide, primarily to customers in Japan, South Korea, and broader Asia.
The Magnetics segment operates the Independence Facility, where the Company began production of magnetic precursor products in December 2024 and anticipates manufacturing neodymium-iron-boron ( NdFeB ) permanent magnets by the end of 2025.
The Company expects that the Magnetics segment will begin generating revenue from sales of magnetic precursor products, specifically NdPr metal, to a single customer in the U.S.
Certain rare earth elements ( REE ) serve as critical inputs for the rare earth magnets inside the electric motors and generators powering carbon-reducing technologies such as hybrid and electric vehicles (referred to collectively as xEVs ) and wind turbines, as well as drones, defense systems, robotics and many other high-growth, advanced technologies.
As the only scaled source in North America for critical rare earths, with a processing footprint designed to operate with best-in-class sustainability and an industry-leading cost structure, the Company believes it is well-positioned to thrive as the global economy electrifies and as the United States prioritizes domestic manufacturing and secure supply chains.