MP Materials Soars 19.21% on DoD Partnership

On July 10, 2025, MP Materials experienced a significant surge in its stock price, rising by 19.21% in pre-market trading. This substantial increase can be attributed to the company's recent announcement of a transformational public-private partnership with the United States Department of Defense (DoD).

This strategic collaboration aims to accelerate the development of a comprehensive U.S. rare earth magnet supply chain, reducing the country's reliance on foreign sources. The partnership includes a multibillion-dollar investment package from the DoD, which will support the construction of a new magnet manufacturing facility, known as the "10X Facility." This facility is expected to commence operations in 2028, significantly boosting MP Materials' domestic production capacity to an estimated 10,000 metric tons.

The agreement also includes a 10-year price floor commitment for MP Materials' NdPr products, ensuring stable cash flow and reducing vulnerability to market fluctuations. Additionally, the DoD has agreed to purchase 100% of the magnets produced at the 10X Facility for a decade, further securing the company's financial stability and growth prospects.

MP Materials' existing capabilities at its Mountain Pass mine in California and its magnetics operations in Texas will be enhanced through this partnership. The company will add heavy rare earth separation capabilities at Mountain Pass, solidifying its position as a national strategic asset. This initiative is part of a broader effort by the Trump administration to strengthen American supply chain independence and industrial resilience.

The partnership is expected to have a profound impact on the rare earth magnet industry, which is crucial for advanced technology systems in both defense and commercial sectors. By catalyzing domestic production, MP Materials is poised to become a national champion with a durable and scalable economic platform, positioning itself as a key player in the global rare earth market.