MP Materials Stock Soars 5.4% Following U.S. Department of Defense Investment

Stock Performance

MP Materials Corp. (Ticker: MP) closed at $65.36 on January 12 (local time), up 5.39% from the previous session. Trading volume exceeded 6.73 million shares, far above recent averages. Last year’s large-scale investment agreement with the U.S. Department of Defense and Apple’s $500 million strategic investment announcement—both underscoring MP Materials as a core pillar in the rare-earths supply chain—once again drove the share price higher.

## Supply Chain Integration MP Materials operates the only commercially active rare-earth mine in the United States—the Mountain Pass mine in California—and specializes in supplying neodymium-praseodymium (NdPr) magnetic materials used in electric-vehicle motors and wind turbine generators. The company announced that it will begin NdPr metal production in 2025 at its Independence facility in Fort Worth, Texas, realizing true vertical integration from ore extraction through refining and magnet manufacturing. This domestically complete supply chain aligns with U.S. government policy to reduce dependence on China and has raised investor expectations. ## Policy and Security Support The revaluation of MP Materials’ stock also reflects strong policy and security backing: - U.S. Department of Defense (DoD) announced in July 2025 that it will acquire $400 million of preferred shares in MP Materials, becoming the largest shareholder and funding the construction of the new “10X Facility” for magnet production. - Apple’s earlier $500 million strategic investment in the rare-earth magnet supply chain further solidified market views of MP Materials as a prime beneficiary of the U.S.–China rare-earths rivalry.

Risks and Cautionary Outlook

Analysts warn that this “policy momentum rally” driven by major strategic investments and government support could increase short-term volatility. At each of the DoD and Apple investment announcements, MP Materials’ shares jumped by double digits in a single day. Given the sensitivity of earnings and valuation to rare-earth prices, electric-vehicle demand, and the trajectory of U.S.–China trade tensions, experts recommend a cautious approach, emphasizing the need to closely monitor actual expansions in production capacity and improvements in profitability before relying on policy expectations.