How much of MP Materials’ revenue comes from haram?

MP Materials owns and operates the Mountain Pass facility, one of the world’s largest integrated rare earth mining and processing facilities and the only major rare earths resource in the Western Hemisphere, primarily focused on producing Neodymium (“Nd”) and praseodymium (“Pr”).

Practical Islamic Finance concludes:

None of MP Materials’ revenue comes from anything inherently haram.

Does MP Materials rely on interest to operate?

Year-to-Date
for period ended
6/30/2021
Fiscal year
ended
12/31/2020
Fiscal year
ended
12/31/2019
Interest Income $163$461
Total Revenue$133,089$134,310$73,411
Interest Expense $3,793$5,009$3,412
Total Expenses$78,915$102,398$81,031
Interest Income / Revenue0.12%0.63%
Interest Expense / Total Expense4.81%4.89%4.21%
*Numbers in thousands, U.S. dollars

Practical Islamic Finance concludes: 

Riba is used but not relied upon in MP Materials’ operations.

What is MP Materials’ Environmental, Social, and Governance (ESG) impact?

Environment

MP Materials uses a dry stacking process that eliminates the need for high-risk wet tailings ponds, enabling the recirculation of >90% of the processed water and virtually eliminating the risk of groundwater contamination.

Social

MP Materials has a Glassdoor rating of 3.7 out of 5 from current and previous employees compared to a 3.3 average for all other Glassdoor rated companies. 

Governance

No notable governance highlights.

Practical Islamic Finance concludes: 

MP Materials has a net positive ESG impact.

Comfort Rating

From MP Materials’ business, financial, and ESG reviews, Practical Islamic Finance rates MP Materials stock as: 

Comfortable to invest in from a halal perspective.

Sources

Working at MP Materials 

MP Materials Q2 10-Q
MP Materials 10-K