Breaking : MP Materials Gets $400M Pentagon Boost to Build U.S. Rare-Earth Magnet Facility
MP Materials Corporation (MP), the only US-based producer of rare earth elements, saw its stock surge significantly after announcing an unprecedented public-private partnership with the US Department of Defense – increasing by nearly 50% in a single day.
📈 Current Stock Snapshot
• Price: $45.48
• Day High: $49.95
• Day Low: $30.26
• Volume: 32.7M+ shares
• Market Cap: ~$8.5 Billion
• Ticker: NYSE: MP
Why did the Pentagon choose MP material ?
The Pentagon has taken a strategic step to reduce the US’ reliance on China for rare-earth elements needed for defense, electric vehicles (EVs) and cutting-edge technologies. They have taken these steps :
• Invested $400 million in the preferred stock of MP Materials
• Took a 15% equity stake in the company • Set a minimum purchase price ceiling of $110/kg for 10 years for NdPr rare-earth magnets
• Provided a $150 million loan to expand separation capacity at the Mountain Pass mine in California
What’s Coming Next: “10X Magnet Factory”
MP Materials has recently revealed exciting plans to build a second magnet manufacturing plant in the US, which they are calling the “10X Facility”. Here’s what you should know:
• They aim to achieve an impressive annual capacity of 10,000 metric tons by 2028.
• This will nearly double existing magnet production capabilities in the US.
• The plant will produce magnets for a wide range of applications, including F-35 fighter jets, hypersonic missiles, electric vehicles and wind turbines.
This ambitious project is backed by:
• A massive $1 billion infusion of capital from JPMorgan and Goldman Sachs.
• Long-term agreements to supply the US government.
Market reaction and analystsopinion
- The stock gained nearly 50%, reaching its highest point in a year
- Analyst opinion is mixed – some believe it is overbought in the short term, while others see long-term value for national security
- The average analyst target for the next 12 months is about $28, but it is likely to be adjusted upward
Why it’s important to the US economy and security
- The US currently imports more than 80% of rare-earth materials from China
- The agreement signals a strategic shift toward securing domestic supply chains
- Essential for defense independence, electric vehicles, aerospace, and renewable energy
https://www.investors.com/news/mp-materials-stock-soars-pentagon-launches-rare-earths-war-china/
