MP Materials Raises $650M in Upsized Public Offering for Operational Expansion and Strategic Growth

MP Materials Corp. announced the pricing of an upsized underwritten public offering of common stock, selling 11,818,181 shares at $55.00 per share, raising approximately $650 million. The company intends to use the net proceeds for operations acceleration, expansion, and strategic growth opportunities. The offering is expected to close on July 18, 2025. J.P. Morgan Securities LLC and Goldman Sachs & Co. LLC are leading the offering as joint book-running managers.

MP Materials Corp. (NYSE: MP) has priced an upsized underwritten public offering of common stock, selling 11,818,181 shares at $55.00 per share, raising approximately $650 million. The company intends to use the net proceeds for operations acceleration, expansion, and strategic growth opportunities. The offering is expected to close on July 18, 2025. J.P. Morgan Securities LLC and Goldman Sachs & Co. LLC are leading the offering as joint book-running managers [2].

The offering follows a significant deal with Apple Inc. (AAPL) for the production of rare earth magnets, which is part of Apple's broader strategy to reduce supply risks. MP Materials also signed a multibillion-dollar agreement with the U.S. Department of Defense last week, aiming to reduce the U.S.'s reliance on Chinese rare earths following export restrictions [1].

MP Materials has seen a substantial increase in its stock price this year, surging over 275%. The company's market value has reached $9.57 billion, reflecting investor confidence in its strategic partnerships and growth prospects [1].

The offering is subject to market and other conditions, with no assurance provided regarding whether or when it may be completed, or its actual size or terms. The company has a strong liquidity position, as indicated by its current ratio of 4.12, but faces profitability challenges [2].

Analysts have expressed varying opinions on MP Materials' stock. While some have raised price targets and maintained buy ratings, others have issued hold ratings. The consensus rating is a "Moderate Buy" with a consensus price target of $31.28 [3].

References:
[1] https://www.reuters.com/world/china/mp-materials-commences-500-million-public-offering-common-stock-2025-07-16/
[2] https://www.investing.com/news/company-news/mp-materials-launches-500-million-public-stock-offering-93CH-4138474
[3] https://www.marketbeat.com/instant-alerts/mp-materials-nysemp-given-new-5500-price-target-at-canaccord-genuity-group-2025-07-11/