MP Materials Soars 12.94% on Pentagon Investment

On July 15, 2025, MP Materials' stock surged by 12.94% in pre-market trading, marking a significant rise in investor confidence and market sentiment.

MP Materials has seen a substantial boost in its stock price following a major deal with the Pentagon. The agreement involves the Pentagon purchasing a 15% equity stake in MP Materials for $400 million, making it the largest shareholder in the company. This investment is part of a broader strategy to enhance the U.S.'s domestic rare-earth production capabilities, reducing reliance on foreign suppliers, particularly China.

The Pentagon's investment is not just financial; it also includes a commitment to triple the magnet capacity of MP Materials' Texas plant and build a second, larger plant. This expansion is crucial for meeting the growing demand for rare-earth magnets, which are essential for various defense and commercial applications, including F-35 jets and electric vehicles.

MP Materials' strategic position as the only fully integrated U.S. rare-earth producer, from mining to NdFeB magnet production, has been further strengthened by this government backing. The company's goal to become a national rare-earths "champion" is now more achievable, positioning it to compete directly with China in the global rare-earth market.