MP Materials offer of 11.82 million shares prices at $55/share

MP Materials offer of 11.82 million shares prices at $55/share

MP Materials Corp. (NYSE: MP) has announced the pricing of an upsized underwritten public offering of common stock. The company is selling 11.82 million shares at $55 per share, with an aggregate gross proceeds expected to be approximately $650 million [3].

The proceeds from the offering will be used to fund the acceleration and expansion of the company's operations, including the 10X Facility, for strategic growth opportunities and general corporate purposes. The offering is expected to close on July 18, 2025, subject to customary closing conditions [3].

MP Materials operates the only rare earths mine in the United States and is a fully integrated rare earth producer with capabilities spanning the entire supply chain—from mining and processing to advanced metallization and magnet manufacturing. The company extracts and refines materials from one of the world’s richest rare earth deposits in California and manufactures the world’s strongest and most efficient permanent magnets [3].

The recent agreement with the U.S. Department of Defense (DoD) aims to boost the output of rare earth magnets and reduce China’s dominance in the materials critical for weapons, electric vehicles, and electronics manufacturing. This agreement includes a $400 million equity investment and a $150 million loan to expand MP Materials’ rare earth capabilities and build a new magnet manufacturing facility [1].

Additionally, MP Materials has recently been in discussions with Apple (NASDAQ:AAPL) regarding a potential commitment of $500 million to purchase U.S.-made rare earth magnets from the company’s Texas facility. This agreement would involve plans for Apple to purchase magnets from MP Materials and build an additional factory in Fort Worth, Texas for magnet production and establish a new recycling facility in Mountain Pass, California [2].

The company's stock has shown remarkable momentum, delivering a 273% return year-to-date and currently trading near its 52-week high of $62.87. Analysts from Canaccord Genuity and TD Cowen have significantly raised their price targets for MP Materials, with Canaccord Genuity raising its price target to $64.00 from $55.00 and maintaining a Buy rating [1].

However, Jefferies downgraded MP Materials from Buy to Hold, citing changes in China’s export policies for rare earth magnets, but raised its price target slightly to $33.00, reflecting a cautious outlook [1].

References:

[1] https://www.investing.com/news/analyst-ratings/canaccord-genuity-raises-mp-materials-stock-price-target-on-apple-demand-93CH-4137803
[2] https://in.investing.com/news/stock-market-news/mp-materials-stock-surges-on-reported-500-million-apple-commitment-4911961
[3] https://www.marketscreener.com/news/mp-materials-announces-pricing-of-upsized-650-million-public-offering-ce7c5cd9dd88f525