MP Materials stock may be 26% overvalued after soaring in the wake of Pentagon ownership and a $500 million Apple contract. Here's why.
MP Materials remains a buy after a 230%+ rally, driven by ramping production, macro tailwinds, and major partnerships with DoD and Apple. The DoD partnership secures a 10-year deal, price floor, and major investment, positioning MP as a US rare earth monopoly with strong growth prospects. Apple's agreement adds upside and innovation potential, but the main catalyst is the DoD's support and guaranteed demand for MP's output.
MP Materials, which runs the only American rare earths mine, announced a new $500 million agreement with tech giant Apple on Tuesday to produce more of the powerful magnets used in iPhones as well as other high-tech products like electric vehicles.
This is a developing story. Check back for updates.
Apple is investing $500 million in MP Materials, a US producer of rare earth magnets. News of the deal sent MP Materials' stock price soaring more than 25% Tuesday.
Screen mass production is supposed to begin in the fourth quarter of this year, so the foldable iPhone can go on sale in 2026.
Apple is investing $500 million in MP Materials, the only fully integrated rare earth mining company currently operating in the United States, as part of a broader effort to strengthen the domestic rare earth supply chain.
Apple and miner MP Materials are joining forces in a $500 million deal to develop a rare earths magnets recycling facility. The agreement is part of Apple's $500 billion pledge to onshore production.
Shares in MP Materials Corp., a rare earth materials company, are surging in premarket trading on Tuesday for the second time in recent days.
Apple Inc (NASDAQ:AAPL, ETR:APC) is reportedly set to invest $500 million in MP Materials, the operator of the only rare earths mine in the United States, according to Fox Business. The announcement follows MP Materials' recent multibillion-dollar agreement with the US government aimed at increasing domestic production of rare earth magnets, crucial for electric vehicles, electronics, and defence applications.
Apple on Tuesday is expected to announce a $500 million commitment to MP Materials , the operator of the only U.S. rare earths mine, Fox Business reported on Tuesday, citing multiple sources familiar with the deal.
Apple (AAPL) reached $208.62 at the closing of the latest trading day, reflecting a -1.2% change compared to its last close.