MP Materials Surges 2.94% Amid Strategic Alliances to Counter China's Rare-Earth Dominance Trading Volume Ranks 171st

MP Materials (MP) surged 2.94% on August 28, 2025, with a trading volume of $0.55 billion, ranking 171st in market activity. The rally followed strategic developments in the rare-earth sector, driven by growing U.S. efforts to secure domestic supply chains. The Department of Defense (DoD) invested $400 million for a 15% stake in MP and guaranteed a minimum price of $110 per kilogram for neodymium-praseodymium (NdPr) oxide over the next decade, doubling current Chinese market rates. This partnership aims to counter China's dominance in rare-earth processing, which accounts for 90% of global refining capacity.

MP's collaboration with Apple further bolstered investor confidence. The tech giant agreed to a $500 million investment to source U.S.-produced rare-earth magnets made from 100% recycled materials. The deal includes expanding MP’s Fort Worth facility, expected to produce 1,000 metric tons of magnets annually by late 2025. These partnerships highlight MP’s role in addressing U.S. strategic vulnerabilities, as 80% of American rare-earth consumption in 2024 relied on Chinese imports.

However, scaling production remains a critical challenge. MP’s current magnet output is insufficient to meet commitments from Apple, the DoD, and other potential clients. The company is advancing the 10X Facility, a $1 billion project backed by JPMorgan and Goldman Sachs, which could expand annual magnet production to 10,000 metric tons. This expansion is pivotal for translating long-term demand into revenue, as MP’s 2024 sales totaled just $61 million. Capital-intensive construction and recent termination of ties with Chinese partner Shenghe Resources add operational risks.

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