Latest news with #supply chain
Yahoo
15 hours ago
- Business
- Yahoo
Here's Why MP Materials Blasted Higher Again This Week
Key Points The necessity to secure a reliable domestic supply of rare earth materials is driving MP Materials stock higher. A deal with Apple followed a landmark agreement with the Department of Defense. 10 stocks we like better than MP Materials › Shares in rare-earth materials and magnets company MP Materials (NYSE: MP) blasted higher by 33.6% in the week to Friday morning. Why MP Materials surged again this week It's not hard to see why the stock has surged this year. The ongoing need to secure domestic provision of rare earths and the growing trade conflict with China (the country produces about 70% of global rare-earth elements) is driving the U.S. administration, via the Department of Defense, to enter into a partnership with MP Materials. The $400 million investment in stock from the DOD, a $150 million loan, and an agreement to ensure the purchase of magnets produced from a facility that MP Materials will build with the help of committed financing, provide substantive backing to the company's growth plans. But that was last week. On Tuesday, MP Materials announced an agreement with Apple, whereby it will pay $500 million (with $200 million prepaid) for rare-earth magnets under a long-term supply agreement. The magnets will be produced at a facility in Texas that MP Materials will expand. The news sent the stock racing higher, and a public offering of stock worth $500 million on Wednesday received such interest that management raised it to $650 million the next day. This is a company on a roll, but substantive execution and political risk remain over the long term. Should you buy stock in MP Materials right now? Before you buy stock in MP Materials, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and MP Materials wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,281!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,050,415!* Now, it's worth noting Stock Advisor's total average return is 1,058% — a market-crushing outperformance compared to 179% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends MP Materials. The Motley Fool has a disclosure policy. Here's Why MP Materials Blasted Higher Again This Week was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
MP Materials Is Surging on a $500 Million Apple Deal. Should You Buy MP Stock Here?
Apple (AAPL), the world's third-largest company by market cap, has agreed to buy rare earth magnets from MP Materials (MP). Shares of the mining firm are up more than 20% at writing. On Tuesday, the iPhone maker announced a $500 million agreement that will see it establish a commercial-scale rare earth magnets recycling facility in collaboration with MP Materials as well. More News from Barchart Palantir Just Launched Warp Speed for Warships. Does That Make PLTR Stock a Buy? This Analyst Just Doubled His Price Target on AMD Stock How High Can Nvidia Stock Go as Jensen Huang Heads to China? Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! Including today's rally, MP stock is up nearly 290% versus its year-to-date low set in late May. Why Did MP Stock Soar on Apple Deal? Apple's announcement as part of its broader commitment to invest up to $500 billion to onshore production is significant as it locks MP Materials into a multi-year supply chain role for one of the world's most valuable firms. Investors are cheering the AAPL deal because what it means for the rare earth materials company is long-term revenue visibility, strategic validation, and national importance. Essentially, it positions MP as a cornerstone of U.S. rare earth independence, reducing reliance on China and aligning with Pentagon-backed initiatives. With magnet shipments expected to support hundreds of millions of Apple devices from 2027, the NYSE-listed firm gains scale, credibility and investor confidence, all of which could translate into a further increase in MP share price in the back half of this year. Is There Any Further Upside Left in MP Shares? MP Materials shares continue to extend gains also because the Pentagon announced a $400 million investment in the mining firm last week, effectively becoming its largest shareholder. However, the explosive move to the upside warrants caution in buying MP stock as it's egregiously overvalued at current levels. MP shares have a forward price-sales ratio of more than 36x at the time of writing, which is well above a number of AI stocks, even including Nvidia (NVDA) that's going for less than 31x only. How Wall Street Recommends Playing MP Materials Wall Street firms continue to abstain from raising estimates for MP shares due to valuation risks as well. While the consensus rating on MP stock remains at 'Moderate Buy,' the mean target of about $31 indicates potential downside of up to 50% from current levels. On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Pentagon-Backed MP Materials Soars 255% -- But Is a Crash Coming?
MP Materials (NYSE:MP) has been on a tear, surging 255% in 2025 as momentum builds behind America's push to reclaim control of rare earths. The company secured a $500 million magnet deal with Apple (NASDAQ:AAPL), a multi-hundred-million-dollar equity stake from the Pentagon, and over $1 billion in financing from Wall Street. On top of that, the Department of Defense is backing MP with a $150 million loan and has agreed to buy magnets at a floor price of $110/kg, with room for MP to sell the excess to auto and tech firms. These tailwinds could unlock a tenfold increase in magnet output a bet on U.S. supply chain resilience and the growing demand for neodymium-praseodymium (NdPr) used in EVs, smartphones, and missiles. Warning! GuruFocus has detected 5 Warning Sign with MP. But for all the hype, the bear case is worth paying attention to. MP still posted a $23 million loss in Q1 despite a 25% revenue bump, and its dependence on Shenghe Resources which made up 60% of revenue adds geopolitical complexity. While MP has made real strides in technical capabilities, including mastering grain boundary diffusion, analysts at Jefferies warn China still holds key cards: cheaper labor, abundant raw materials, toxic waste infrastructure, and the ability to flood the market to control prices. In fact, a similar price war in 2022 sent rare earth prices down 80%. Jefferies downgraded the stock to Hold last week, calling the risk/reward "neutral, at best" even under optimistic projections. The upside isn't small mid-cycle earnings could grow to $650 million, or even hit $1.5 billion with an ambitious build-out. But hitting those numbers may require up to $4 billion in fresh capital. Right now, the market seems to be baking in 2530% returns on future investments and applying a discount rate that may be too generous. TipRanks data shows the stock could be 26% overvalued despite eight analysts calling it a Strong Buy. With so much riding on execution, MP may still have room to run but the margin for error is narrowing. This article first appeared on GuruFocus.
Associated Press
4 days ago
- Business
- Associated Press
Investing in the Future of Sustainable Luxury: Tapestry Expands Partnership With Gen Phoenix
Tapestry's purpose is clear: to stretch what's possible in fashion while staying true to our heritage of craftsmanship, quality, and innovation. Today, Tapestry is proud to share a bold step forward in that journey—an expanded partnership with Gen Phoenix, a pioneer in sustainable recycled leather fiber materials. With a new three-year supply agreement and an increased equity stake in Gen Phoenix to 9.9%, Tapestry has nearly quadrupled its initial investment from 2023. This investment is part of Gen Phoenix's $15 million Series round, led by Material Impact, and it reflects our belief in the power of innovation to drive both purpose and profit. Tapestry's relationship with Gen Phoenix began in 2022, and it's grown into a model for how brands and material innovators can co-create sustainable solutions. Together, the companies have developed next-generation materials that honor the legacy of leather—so central to our brands Coach, Kate Spade, and Stuart Weitzman—while transforming it through circular processes. This isn't just about sourcing materials. It's about building a resilient, future-ready supply chain that aligns with the values of today's consumers. Gen Phoenix's platform enables circularity at scale, delivering high-quality materials that meet our expectations for style, performance, and impact. 'As a global leader in quality leather goods, we see significant opportunity to be a catalyst for next-generation materials,' said Scott Roe, Tapestry's Chief Financial Officer and Chief Operating Officer. 'This partnership reinforces our commitment to leading the fashion industry in sustainable innovation.' Tapestry's expanded investment helps Gen Phoenix accelerate its mission in meaningful ways: 'This expanded partnership marks a major milestone—not just for Gen Phoenix, but for the future of sustainable materials,' said John Kennedy, CEO of Gen Phoenix. 'Together with Tapestry, we're proving that circular innovation can meet the demands of global brands without compromise. It's a powerful example of what happens when you combine material innovation, leather heritage, shared values, and a commitment to scale.' For Tapestry, this means greater supply chain resilience, continued product excellence, and deeper alignment with the values of the next generation of consumers. Tapestry is excited about what's ahead and looks forward to continuing this journey with Gen Phoenix to redefine what sustainable luxury can be. Visit 3BL Media to see more multimedia and stories from Tapestry, Inc.
Fast Company
4 days ago
- Business
- Fast Company
When will we leverage our above-ground mine?
Everyone in Washington knows the score: America's rare earth supply chain runs straight through China. It's one of the few issues before Congress that enjoys bipartisan support. But most of the solutions on the table remain shortsighted, dominated by two false binaries: Mine more at home or buy more from allies abroad. And yet, the most immediate solution is one barely being discussed. What is missing from the conversation in both Congress and the Trump administration is a faster, cleaner option: recovering rare earth elements from materials we've already used. If we're serious about decoupling from China, recycling rare earth elements from end-of-life products is essential. However, current federal policy has yet to fully recognize this opportunity or support it at scale. Rare earth elements power the permanent magnets that drive everything from consumer electronics and medical devices to data centers and defense systems. China controls over 90% of rare earth processing capacity and 70% of production. Billions of dollars have been invested in reshoring some of this value chain, but the pace is glacial, and opening new mines will take years, if not decades. Recycling as an option Meanwhile, the U.S. is sitting on an untapped domestic source of these very elements: smartphones, cars, appliances, hard drives, and other products we discard every year. Less than 1% of rare earth elements are recycled. Today, the vast majority end up in landfills or are shipped abroad for low-value scrap. With the right policy and technology support, we could be recycling a meaningful share of the rare earth elements we need, right here at home. To be clear, recycling won't eliminate the need for new mining altogether, but it can dramatically reduce our dependence on an unstable supply chain. So why has Congress largely ignored this path? In part, it's due to outdated thinking. For decades, rare earth elements were treated as byproducts, not priorities. But the world has changed, and the stakes have risen. As we transition to an electrified economy where everything from personal mobility to manufacturing depends on electrified systems, we need to treat these elements as the national security assets they are and plan for their full lifecycle. Three steps to hasten recycling Recent moves by the Trump administration to invoke the Defense Production Act to support the critical minerals supply chain show that wake-up calls are finally being heard at the highest levels. But waivers alone won't solve the issue. The administration and Congress can take three concrete steps now to accelerate domestic rare earth recycling. 1. Treat end-of-life rare earth elements as a strategic resource. Just as we stockpile oil, we should be inventorying our above-ground, urban mine—the stream of magnets and motors already in circulation. This potential is huge: By 2035, the U.S. is expected to generate 43,000 metric ton s of end-of-life magnets that could otherwise end up in overseas scrapyards. This untapped 'above-ground mine' is a unique opportunity to secure our critical supply chains, and it should be protected with reinforced export controls. 2. Empower federal agencies to take action. The Department of Defense (DOD) and Department of Energy are globally recognized as the most powerful accelerators of strategic industries, fueling America's rise in defense, technology, and energy leadership. Their contribution has never been more needed. Without immediate action to recycle our retired defense systems, we risk losing critical ground. Congress and the administration now have a unique opportunity to empower these agencies and secure vital elements, strengthen our innovation ecosystem, and ignite a domestic industry, before it's too late. 3. Direct federal budgets to scale domestic capacity. We now have the tools and technologies to reshape our critical elements supply chain. Traceability solutions are ready and aligned with DOD requirements to avoid entities of concern, yet the majority of rare earths are still processed in China. Agencies like the Export-Import Bank of the United States, the U.S. International Development Finance Corporation, and DOD form the powertrain to fast-track strategic projects and scale domestic capacity. What's needed now is for the administration to seize the full potential of this moment and direct budget to turn readiness into resilience. Invest in infrastructure and incentives now The urgency is real. China has once again demonstrated it can rapidly snap export controls in and out of effect, perpetuating volatile market dynamics, serving as a not-so-subtle reminder of how fragile our current supply chain really is. To break the dependency, Congress should support all viable paths to resilience, including setting policies that will leverage the existing above-ground mine. We don't need to wait a decade to build new mines or hope for more reliable trade partners. The materials we need are already here, in products we've already used. We can start recovering rare earth elements here and now. But unlocking that potential will take broader thinking. Policymakers must expand their focus beyond extraction and invest in the infrastructure and incentives that will save this above-ground mine. By keeping critical elements within our borders and recovering them from end-of-life materials, we can strengthen national security, drive economic growth, support American jobs, and secure the future of U.S. innovation and technological leadership. The industry stands ready; it is now up to the administration to capitalize on this momentum.
