MP Materials Stock Crumbles 3.76% as Trading Volume Surges 38% to Rank 88th

On August 18, 2025, MP Materials (MP) closed down 3.76% at $X.XX with a trading volume of $0.88 billion, representing a 38.08% increase from the prior day and ranking 88th in market activity. The stock faced downward pressure amid a series of corporate and market developments over the preceding week.

A key driver was the announcement of a supply agreement with ReElement Technologies, which secured rare earth material delivery for industrial applications. This strategic partnership, however, coincided with broader market concerns over China’s rebound in rare earth exports, which analysts suggested could exacerbate global supply imbalances and pressure MP’s pricing power.

Technical indicators also signaled bearish momentum, with the 15-minute chart recording a MACD death cross and narrowing Bollinger Bands. These patterns, coupled with intraday declines exceeding 2.3% on multiple occasions, reinforced short-term selling pressure. Meanwhile, a planned resale of 24.5 million shares by existing shareholders added liquidity risk to the stock’s near-term trajectory.

Analyst activity remained mixed, featuring a rare buy rating from Jefferies with an $85 price target, though this was offset by a downgrade from another firm. The conflicting signals highlighted diverging views on the company’s ability to navigate sector-specific challenges while capitalizing on its Mountain Pass mining operations.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to now delivered moderate returns. The 1-day return was 0.98%, with a total return of 31.52% over 365 days. This indicates the strategy captured some short-term momentum but also reflected market volatility and potential timing risks.