SpaceX Needs Raw Materials: MP Materials, Standard Lithium and Strategic Resources Aim to Meet the Demand

Strategic Resources: Great Potential on Both Sides of the Atlantic

Canada and the European Union aim to significantly deepen their cooperation on critical raw materials, industrial policy, and resilient supply chains. The North Americans could even become an "associated" member of the EU. In a sense, Strategic Resources is already one step ahead. The company is already developing raw material projects on both sides of the Atlantic. In doing so, Strategic Resources is positioning itself between North American mineral deposits and Europe's need for secure sources of iron, vanadium, and other strategically important materials.

At the heart of the business model is the structurally rising demand for high-quality iron ore pellets. Strategic Resources aims to address this demand with the BlackRock project in Québec, Canada. Feasibility study figures underscore the project's long-term scope. For the Southwest area, Strategic Resources reports proven and probable ore reserves of about 127.8 million metric tonnes of mineralized rock, which will support a planned mine life of 39 years. For the Southwest area and the adjacent Armitage area, measured and indicated mineral resources of approximately 325.5 million metric tonnes of mineralized material are also reported, along with an additional 73.3 million metric tonnes of inferred resources. The rock also contains magnetite, vanadium and titanium. The mineralization extends over approximately 20 km, indicating additional long-term development potential beyond the current mining plan.

To extend the value chain, the company plans to establish its own processing facilities. A plant with a capacity of approximately 4 million metric tonnes of DR-grade pellets per year is to be built at the deep-water port of Saguenay. The site has access to affordable hydroelectric power, pipeline natural gas, and direct access to international markets.

The Mustavaara project in Finland adds a second strategic vanadium and iron ore project in Europe to BlackRock's portfolio. Mustavaara was already in production from 1976 to 1985 and, together with the nearby Otanmäki mine, was at times one of the world's most significant sources of vanadium. Today, the project has a NI 43-101-compliant measured and indicated resource of approximately 103.7 million metric tonnes, averaging 15.36% magnetite and 0.90% vanadium in the magnetite concentrate. In addition, the company has a further 42.2 million metric tonnes of inferred resources. Of particular interest is the additional exploration potential along an approximately 18 km long magnetic anomaly.

The target markets extend far beyond traditional steel production. DR-grade pellets and high-purity pig iron are primarily feedstocks for low-carbon steel. This steel is needed, for example, in automotive manufacturing, mechanical engineering, the construction industry, and for infrastructure. Vanadium is used primarily as an alloying metal to produce high-strength steels for buildings, bridges, pipelines, tools and specialty applications. In addition, Strategic Resources is collaborating with Tyfast Energy to tap into the potential of advanced battery materials. Titanium, in turn, is used to produce titanium pigments and titanium materials. These are used, among other things, in paints and coatings as well as in demanding industrial applications. BlackRock thus covers several end markets that stand to benefit from decarbonization, infrastructure investments, and the expansion of Western supply chains for critical raw materials.

Standard Lithium: PEA Not Enough for Investors

Standard Lithium is expected to meet a large portion of the US's lithium demand in the future. The stock has lost more than 50% of its value this year. Investors are awaiting the final investment decision for the South West Arkansas project.

Consequently, the recently published positive preliminary economic assessment (PEA) for the Franklin Project in eastern Texas failed to boost the share price. The project is being developed through the Smackover Lithium partnership with Equinor. It is expected to reach a production capacity of up to 70,000 metric tonnes of battery-grade lithium carbonate per year. Over the modelled 20-year project life, average annual production is expected to be around 65,000 metric tonnes.

The PEA is based on a lithium carbonate price of USD 22,400 per metric ton. Average cash operating costs are reported at USD 4,226 per metric ton of lithium carbonate. All-in costs are projected to be USD 5,054 per metric ton. According to the PEA, the project's economic viability is robust. The debt-free net present value after taxes is USD 5.0 billion, and the internal rate of return is 24%. This means the project could pay for itself in as little as 3.1 years.

In addition to lithium, Franklin offers further potential through bromine and potash. The PEA is already examining potential bromine production of 50,000 metric tons per year, while potash has not yet been factored into the economic analysis and could therefore offer additional upside. The next step is to advance the project to a Preliminary Feasibility Study, which is scheduled for completion in 2027. In parallel, the company will conduct further DLE tests and examine the potential of bromine and potash in greater detail.

Prior to this announcement, Jefferies had initiated coverage with a "Hold" recommendation. Analysts see opportunities in the DLE strategy and the partnership with Equinor. At the same time, however, they point to outstanding milestones such as financing, scaling, and additional offtake agreements. Consequently, analysts currently estimate the stock's fair value at CAD 2.90, which is in line with the current share price.

MP Materials: Disappointing Results

MP Materials is considered one of the US's key hopes for reducing dependence on China for rare earths and permanent magnets. The company operates Mountain Pass, the most significant rare earth mine in the US, while simultaneously expanding domestic processing and magnet production. The US Department of Defense is supporting MP Materials in establishing an end-to-end domestic "mine-to-magnet" supply chain. On the stock market, however, the euphoria has cooled in 2026. The stock has lost about 14% of its value so far this year. Its market capitalization stands at around USD 8.4 billion.

A look at the latest quarterly figures shows that the valuation remains ambitious. Despite operational progress, investors reacted cautiously to these results. Revenue rose 89% to USD 108.5 million in the second quarter of 2026. Adjusted EBITDA came in at USD 28.5 million, following a loss in the same quarter of the previous year. Nevertheless, the bottom line was a net loss of USD 20.3 million, corresponding to a loss of USD 0.11 per share. On an adjusted basis, earnings per share of USD -0.01 were just below the break-even point.

Earnings were weighed down, among other things, by higher start-up costs in the magnet business, rising personnel costs, and additional interest and depreciation expenses. At the same time, MP Materials continues to advance its vertical integration. Positive developments include progress in magnet qualification, the expansion of the 10X plant, and a new long-term supply contract for gadolinium with a US customer in the aerospace and defence industries. Operationally, the company is clearly making headway, but profitability has yet to sustainably catch up as the business continues to ramp up.

Strategic Resources, Standard Lithium, and MP Materials focus on three commodity sectors that are gaining importance for Western industry and the expansion of the space industry. Strategic Resources stands out primarily for its large resource base, diverse range of commodities, and projects in Canada and Europe. The company is currently valued at just CAD 14.8 million. Standard Lithium has a market capitalization of over CAD 750 million. The Smackover projects have significant potential, but the final investment decision and financing continue to create considerable uncertainty. MP Materials is strategically particularly important for the US rare earths supply chain. However, its valuation is already very high.