MP Materials Surges on Apple, Pentagon Rare Earth Deals
MP Materials stock surges after Apple and Pentagon rare earth deals, boosting $MP as a top rare earth supply chain and EV market play.
Michael.Green
Chief Market Analyst with over 15 years experience with candid commentary and focuses on daily market analysis and financial research writing
Jul 15 2025
$MP Materials, the largest rare earth mining and processing player in the Western Hemisphere, has become a strategic linchpin as the U.S. pushes to reduce reliance on China, which dominates 85% of rare earth processing.
Why Is MP Soaring?
$MP Materials, the largest rare earth mining and processing player in the Western Hemisphere, has become a strategic linchpin as the U.S. pushes to reduce reliance on China, which dominates 85% of rare earth processing.
This week, Apple signed a $500 million agreement to purchase recycled rare earth magnets from MP, including a $200 million advance to help expand MP’s Texas facility. Shipments are expected in 2027, building a dedicated U.S.-based rare earth supply chain for Apple.
Days earlier, MP signed a deal with the Pentagon to establish a price floor for its rare earth materials, giving the company financial certainty and aligning it with defense supply chain priorities. The stock surged over 50% on the Pentagon news and added another 24% after the Apple deal.
The Bigger Picture
MP Materials rare earths are critical for EV motors, advanced electronics, wind turbines, and defense systems. The company currently sells at a $250 million annual run rate and is expected to nearly double revenue next year, moving from a projected loss of $0.80 per share this year to a slim profit next year.
The stock current valuation assumes MP will scale into a billion-dollar rare earth powerhouse, making it a “dream stock” with high volatility and potential.
The recent surge puts MP firmly on watch. For long-term investors, MP is positioned to benefit from structural demand in EVs, defense, and U.S.-based supply chains, though execution and global price pressures remain risks.
Apple deal with MP highlights the tech giant’s push to reduce Chinese dependency while boosting recycled materials use, both ESG-friendly and strategically critical. For MP, this creates a potential multi-year demand pipeline, supported by one of the world’s largest tech companies.
The Pentagon deal further secures pricing in a volatile rare earth market, aligning MP business with national security priorities, factors that could support valuation multiples if execution aligns with projected growth.
The Bottom Line
MP Materials is now a front-line rare earth play for traders looking to capture the intersection of EV growth, supply chain security, and clean energy tech.
Why Invest in Rare Earth Stocks Like MP Materials?
Investing in rare earth stocks like MP Materials positions you at the forefront of EV growth, clean energy demand, and U.S. supply chain security. Rare earth materials are essential for electric vehicle motors, advanced electronics, and defense systems, and with the U.S. aiming to reduce dependence on China, companies like MP Materials are well-placed for long-term growth.
MP Materials strategic deals with Apple and the Pentagon highlight rising demand and strong government and corporate backing in the rare earth space, providing a potential edge for investors seeking exposure to the rare earth and EV sectors.
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Please note that the article should not be considered as investment advice or marketing, and it does not take into account the personal data and requirements of any individual. It is not a substitute for the reader's own judgment, and it should not be considered as advice or recommendation for buying or selling any securities or financial products.
