MP Materials Stock Soars As Pentagon Bets Big On Rare Earths

July 11th, 2025 by Trefis Team
MP: MP Materials logo
MP
MP Materials

MP Materials Corp (NYSE:MP) just had a breakout moment on Wall Street, and it all boils down to one word: defense.

In a bold move to secure the U.S. supply chain for rare earth magnets—vital components for fighter jets, missiles, and electric vehicles—the Pentagon announced a $400 million investment in MP Materials. That single decision sent MP’s stock price soaring by over 50% in a day, hitting a multi-year high. While MP stock has been volatile, if you seek upside with lower volatility than individual stocks, the Trefis High Quality portfolio presents an alternative – having outperformed the S&P 500 and generated returns exceeding 91% since its inception.

The Department of Defense is now the company’s largest shareholder, holding about 15% of MP’s stock through a mix of preferred shares and warrants. That’s a strong vote of confidence, but it’s also a clear sign: the U.S. is taking rare earth independence seriously.

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For MP, this isn’t just cash. It’s strategic firepower. The deal includes a 10-year price floor guarantee and a long-term supply contract—effectively guaranteeing revenue in a volatile market dominated by China. The funds will help MP complete its new “10X” magnet facility in Texas and ramp up operations at its Mountain Pass mine in California.

Markets were quick to react. Investors see this as a game-changing moment for the company, one that transforms it from a niche miner into a national security cornerstone. Year-to-date, the stock is now up over 180%, and analysts are recalibrating their expectations fast.

Bottom line? MP just became more than a mining company. It’s now a key player in the U.S. industrial and defense strategy—and the market is taking notice.

Not too happy about the volatile nature of MP stock? The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming the S&P 500 over the last 4-year period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.

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