MP Materials Soars 15.15% as Magnetics Segment Gains and Strategic Initiatives Drive Optimism

The share price rose to its highest level this month, with an intraday gain of 15.15%.

MP Materials’ stock surged amid improved investor sentiment driven by its Magnetics Segment’s strong performance and long-term strategic initiatives. The company reported a 51% year-over-year increase in neodymium-praseodymium (NdPr) production to 721 metric tons in Q3 2025, despite overall revenue falling 15% to $53.55 million. A net loss of $41.78 million narrowed from $62.93 million in the prior year, while adjusted EBITDA showed modest improvement. Analysts highlighted the segment’s resilience, as NdPr is critical for electric vehicles and defense applications. Additionally, management signaled confidence in returning to profitability in Q4 2025, fueling optimism about operational stabilization.

Strategic progress, including a July 2025 Department of Defense agreement, underpins long-term growth potential. The deal provides guaranteed pricing for rare earth oxides and a secure customer base for magnet production, aligning MP with U.S. supply chain security goals. A new heavy rare earth separation facility at Mountain Pass, set to launch in mid-2026, is expected to address critical gaps in domestic production of high-value dysprosium and terbium. Analysts like DA Davidson’s Matt Summerville have reiterated “Buy” ratings, citing the facility’s potential to reduce costs and enhance scalability. While execution risks and customer concentration remain challenges, the company’s focus on U.S. self-sufficiency in critical minerals positions it to benefit from rising demand in clean energy and defense sectors.