In February 2022, the Company was awarded a $35.0 million contract by the DoW Office of Industrial Base Analysis and Sustainment program to design and build a facility to process HREE at Mountain Pass (the “HREE Facility”) (the “HREE Production Project Agreement”). Grant amounts recognized pursuant to the HREE Production Project Agreement reduce the carrying amount of the fixed assets under construction associated with the HREE Facility. During the nine months ended September 30, 2026 and 2025, the Company recorded grant amounts of $6.5 million and $24.2 million, respectively, under the HREE Production Project Agreement.

In May 2026, the Company and the Office of the Governor of Texas entered into a grant agreement under the Texas Semiconductor Innovation Fund (“TSIF”) to reimburse the Company up to $53.5 million for eligible construction and equipment costs associated with the development of the 10X Facility (the “TSIF Grant Agreement”). Reimbursements are subject to the Company incurring eligible costs and satisfying specified reporting and approval requirements. Upon recognition, reimbursable amounts reduce the carrying amount of the fixed assets under construction associated with the 10X Facility. During the nine months ended September 30, 2026, the Company recorded a grant amount of $10.1 million under the TSIF Grant Agreement.

In August 2022, the U.S. government enacted the Inflation Reduction Act of 2022, which, among other things, promotes clean energy adoption by providing several tax incentives for the domestic production and sale of eligible components. Specifically, the Section 45X Advanced Manufacturing Production Credit (the “45X Credit”) provides a credit equal to 10% of eligible “production costs incurred” with respect to the production and sale of critical minerals, including NdPr oxide.

As of September 30, 2026, and December 31, 2025, the government grant receivable and the deferred government grant balances within the Company’s unaudited Condensed Consolidated Balance Sheets pertained to the 45X Credit.

The current and non-current portions of the government grant receivable are included in “Other receivables” and “Other non-current assets,” respectively, within the Company’s unaudited Condensed Consolidated Balance Sheets (see also Note 13, “Supplemental Balance Sheet Information”). The non-current portion of the government grant receivable balance was $32.6 million and zero as of September 30, 2026 and December 31, 2025, respectively. During the nine months ended September 30, 2026, the Company received $19.0 million related to the 45X Credit claimed on its 2024 federal tax return. The current portions of deferred government grants, which are included in “Other current liabilities,” were not material.

The benefits (reduction of expenses) recognized in the Company’s unaudited Condensed Consolidated Statements of Operations pertaining to the 45X Credit were recorded as follows:


	For the three months ended September 30,				For the nine months ended September 30,
(in thousands)	2026		2025		2026		2025
Cost of sales (excluding depreciation, depletion and amortization) (including related party)	$	7,498	$	3,793	$	22,502	$	10,911
Selling, general and administrative	$	697	$	1,020	$	3,237	$	1,472
Depreciation, depletion and amortization	$	774	$	569	$	2,112	$	1,653