Skyrocketing more than 275% since the start of the year (as of this writing), shares of MP Materials (MP 4.91%) have benefited from strong investor interest in rare earth metals and magnets.
Last week, we reported on the Department of Defense's $400 million investment in MP Materials, a rare earths producer, and the related off-take agreement designed to secure critical materials for US supply chains. To get an industry perspective, Proactive spoke with David Merriman, who leads Rare Earth Research at Project Blue, a consultancy focused on this sector.
Shares of MP Materials Corp. NYSE: MP took the entire market by surprise in the second week of July 2025, as the stock unexpectedly jumped by as much as 44.7% in that short period. While this could trigger most investors to look the other way, feeling that they have missed the boat and would likely land on the wrong side of a trade if they chase after the tock higher, the truth is that there are other factors still at play that can lead MP Materials stock into a higher level.
MP Materials Corp (NYSE:MP) has just experienced a significant breakthrough on Wall Street, and it can be attributed to one word: defense.
MP Materials (MP) rallied more than 40% after the company entered a partnership with the U.S. Department of Defense. It's a landmark deal as the U.S. doubles down on breaking dependency on China for rare earth materials.
MP surges 190% YTD on a major DoD deal to build a U.S. rare earth supply chain, but rising costs and losses cloud near-term gains.
Key Points in This Article: The Defense Department just bought a 15% stake in MP Materials ( MP ), the only U.S.
MP Materials (MP) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might not help the stock continue moving higher in the near term.
MP Materials teams with the DoD in a 10-year deal to boost rare earth magnet output and cut U.S. reliance on foreign supply chains.
MP Materials (NYSE:MP) shares surged almost 50% after it revealed the Pentagon has become its largest shareholder in a bid to boost the domestic supply of rare earth minerals. The US Department of Defense (DoD) has invested $400 million in MP Minerals' preferred stock, giving it a roughly 15% stake in the company.
Close Key Takeaways MP Materials stock soared 50% Thursday morning after it came to an agreement with the Department of Defense.The DoD will become MP's largest shareholder, taking a stake of up to 15% in the rare earth miner.It has also committed to becoming a long-term customer of MP's rare earths with a price floor of $110 per kilogram. Shares of MP Materials (MP) surged 50% in Thursday morning after the rare earths miner announced a multibillion-dollar agreement with the Department of Defense. The DoD is set to become MP Materials' largest shareholder at 15% following an initial $400 million purchase of a new class of "preferred stock convertible into shares of the Company's common stock, and a warrant permitting DoD to purchase additional shares of the Company's common stock." MP Materials will use the government investment, along with a $1 billion funding line from JPMorgan Chase (JPM) and Goldman Sachs (GS) to fund the construction of its second domestic magnet manufacturing facility at a yet-to-be-decided location. The company also agreed to a 10-year deal with the DoD establishing the government as a long-term customer of MP's rare earths with a price floor of $110 per kilogram. The Trump administration has stated that becoming less dependent on other nations like China for rare earths—metals used in production of a variety of commercial and military products—is a top priority and national security concern. Shares of MP and USA Rare Earth (USAR) have been boosted this year by that commitment. MP Materials hit their highest price since April 2022 on Thursday morning, while USA Rare Earth shares were up nearly 14% shortly after markets opened. UPDATE—This article has been updated with the latest share price information. Do you have a news tip for Investopedia reporters? Please email us at [email protected]
One of the best stocks on Wall Street today is MP Materials Corp (NYSE:MP), last seen 51.6% higher to trade at $45.56.