MP Materials rises 14% at open as Apple commits a $500 million investment

MP Materials rises 14% at open as Apple commits a $500 million investment

MP Materials (NYSE: MP) experienced a significant boost today, with its stock rising by 14% at the open, following Apple's announcement of a $500 million investment in the company. This investment is part of a broader strategy to reduce U.S. dependence on foreign rare earth magnets, particularly those sourced from China.

The investment, which aligns with the Pentagon's recent $400 million investment in MP Materials, will be used to expand the company's processing and magnet production capabilities at its Mountain Pass, California mine. Apple's contribution will fund the construction of a new magnet manufacturing facility in Fort Worth, Texas, and a recycling line at the Mountain Pass facility in California.

MP Materials' stock price, which was last updated at $36.0816 on June 23, 2025, has surged in response to the investment, reflecting investor confidence in the company's strategic importance to the U.S. economy and national security [1]. The company's Q2 earnings are expected on Thursday, July 31, 2025.

The U.S. has long been reliant on China for its rare earth imports, with China accounting for roughly 70% of U.S. rare earth imports in 2023. Rare earths are crucial for various military applications and essential components in consumer electronics. The DoD's investment and Apple's strategic partnership aim to secure a domestic supply chain and reduce reliance on geopolitical rivals [2].

This deal marks one of Apple's biggest efforts to invest directly in U.S. production infrastructure, with MP Materials playing a key role in making magnets from 100% U.S.-sourced and recycled materials. The company plans to produce 10,000 metric tons of rare-earth magnets annually by 2028, up from the current output of 1,000 tons [3].

The expansion will create over 500 new direct jobs and more than 1,000 indirect jobs in the next few years, contributing to the U.S. economy and national security. MP Materials' strategic partnership with Apple and the Pentagon underscores the company's importance in the global rare earth market.

References:
[1] https://www.benzinga.com/quote/MP
[2] https://www.asktraders.com/analysis/mp-materials-stock-price-hits-new-high-pentagon-becomes-largest-holder/
[3] https://m.economictimes.com/news/international/us/apple-pours-500-million-into-mp-materials-in-rare-earths-power-move-pentagon-backed-deal-sends-mp-stock-soaring-11-to-53-85/articleshow/122511570.cms