MP Materials and Sumitomo Corporation Strengthen RareEarth Supply in Japan

MP Materials Corp. and Sumitomo Corporation (“SC”) today announced an agreement to diversify and strengthen Japan’s rare earth supply. According to this agreement, SC will be the exclusive distributor of NdPr oxide produced by MP Materials to Japanese customers. In addition, the two companies will cooperate in the supply of rare earth metals and other products.

NdPr and other rare earth materials are used to produce the most powerful and efficient magnets in the world. Rare earth magnets are key inputs for electrification and advanced technology, including electric vehicles, wind turbines and various electronic equipment.

The global economic electrification and decarbonization efforts are leading to the rapid growth of rare earth demand, which exceeds the new supply. China is the world’s leading producer. The rare earth produced by MP Materials in the United States will be stable and diversified, and the supply chain crucial to the Japanese manufacturing industry will be strengthened.

SC has a long history in the rare earth industry. SC initiated the trade and distribution of rare earth materials in the 1980s. In order to help establish a stable global rare earth supply chain, SC is engaged in rare earth exploration, development, production and trade activities worldwide. With this knowledge, SC will continue to use the company’s enhanced management resources to establish value-added trade.

MP Materials’ Mountain Pass factory is the largest source of rare earth production in the western hemisphere. Mountain Pass is a closed loop, zero-discharge facility that uses the dry tailings process and operates under strict U.S. and California environmental regulations.

SC and MP Materials will make use of their advantages to contribute to the stable procurement of rare earth materials in Japan and support the efforts of social decarbonization.