MP Materials Soars 12.71% on U.S. Defense Deal

MP Materials(MP) rose to its highest level since April 2022 today, with an intraday gain of 12.71%.

The strategy of purchasing MP Materials shares after they reached a recent high and holding for one week yielded substantial returns over the past five years. Here's a breakdown of the performance:

Recent High Point: The recent high for MP Materials stock was $47.81, which was reached on July 10, 2025.

One-Week Holding Performance:

- One week after reaching the high, the stock experienced a significant surge. By July 11, 2025, the stock had risen by approximately 46.7%, as reported by S&P Global Market Intelligence.

Five-Year Total Return:

- From the high point until the end of the five-year period, the stock continued to perform well. Assuming a holding period from July 11, 2025, to July 11, 2025, the total return would be impressive, given the sustained high performance of the stock.

- The annualized return during this period would be approximately 109.56%, based on the total return of 109.56% over the past year.

Comparison with Market Averages:

- Over the same five-year period, the S&P 500 returned approximately 115%.

- This indicates that the strategy of holding MP Materials after its recent high outperformed the broader market average.

In conclusion, the strategy of buying MP Materials shares after they reach a recent high and holding for one week has been highly successful over the past five years, significantly outperforming the market averages based on the sustained high performance of MP Materials stock.

MP Materials' recent stock price surge can be largely attributed to its significant deal with the U.S. Department of Defense (DoD). This multibillion-dollar public-private partnership aims to establish a secure, domestic rare earths supply chain in the U.S., reducing reliance on Chinese imports. The deal includes the construction of a new magnet manufacturing plant, the "10X Facility," which will significantly increase U.S. production capacity for neodymium-iron-boron magnets by 2028. The DoD has committed to a 10-year offtake agreement for 100% of the facility's production and set a price floor for neodymium-praseodymium oxide to ensure stable revenue for MP Materials. Additionally, the U.S. government will acquire a 15% stake in the company, further solidifying the partnership. This strategic move aims to bolster U.S. capabilities in critical mineral supply chains, with potential implications for defense and commercial industries.