Latest news with #MP Materials
Yahoo
10 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
a day ago
- Business
- Yahoo
MP Materials (MP) Soars to All-Time High After Clinching $500-Million Deal with Apple
We recently published . MP Materials Corp. (NYSE:MP) is one of Tuesday's top performers. MP Materials rallied for a second day on Tuesday to hit a new all-time high after clinching a $500-million deal with technology giant Apple Inc. At intra-day trading, MP Materials Corp. (NYSE:MP) soared to a new 52-week high of $62.87 before paring gains to end the day at $58.22 apiece, or 20 percent higher than the previous day's close. In a statement on the same day, Apple pledged to purchase US-made rare earth magnets developed at MP Materials Corp.'s (NYSE:MP) flagship Independence facility in Fort Worth, Texas, and that it would work with MP Materials Corp. (NYSE:MP) to build out the state-of-the-art Texas factory with a series of neodymium magnet manufacturing lines specifically designed for Apple products. The new equipment and technical capacity will allow MP Materials to significantly boost its overall production. Heavy machinery at work in a mining facility, excavating the earth for rare earth minerals. Once built, the produced magnets will be shipped across the country and all over the world. Apple said the partnership forms part of its $500-billion expansion plan in the US over the next four years. While we acknowledge the potential of MP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. 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
Forbes
2 days ago
- Business
- Forbes
DoD Is The Largest Investor In Only American Rare Earth Mineral Mine
Rare earth and critical minerals are essential to powering today's modern and digital world Under the 1933 Buy American Act and the 1941 Berry Amendment, the United States military is generally required to buy American-made products. The laws further prioritize domestic sourcing for goods, and that products for military use contain a certain percentage of U.S. components and materials. Where that has been a problem is in the increasingly reliance on components that require rare earth minerals, which the United States has a limited supply of, while upwards of 70% are imported from China. To help address the issue, the U.S. Department of Defense announced last week that it had acquired a 15% stake in the MP Materials mine, becoming the company's largest shareholder. MP Materials, the operator of the only American rare earths mine, received a $400 million investment from the Pentagon, which will help fund the processing capabilities at its Mount Pass, California, facility and enable the construction of a second magnet manufacturing plant. "It's strategically important for the Pentagon to ensure that its Tier 1 industrial base has access to U.S.-sourced rare earth metals and magnets," explained David Argyle, CEO of REalloys Inc., a company focused on the production of rare earth elements and high-performance magnet materials. "The MP DoD transaction provides a very healthy base load of supply to meet demand," Argyle added, but acknowledged that additional US sources need to be available commencing in 2026, 2027, and beyond. Greater Investment Is Needed There has already been speculation that President Donald Trump could use emergency powers to allow the United States to gain greater control over domestic industries and resources. The Defense Production Act, a Cold War-era law that grants the president significant emergency authority to control domestic industries, was invoked by Trump during his first term and by former President Joe Biden during the pandemic. However, investments are also needed, suggested Brandon Daniels, CEO of AI supply chain company Exiger. "Critical minerals are the lifeblood of our defense capabilities. Everything from specialized engine components for high heat environments to navigation systems demands rare earth minerals at the beginning of the supply chain," said Daniels. "It's a national security imperative that the defense department use its resources to create sustainable independent streams of these resources." The $400 million investment shouldn't be seen as too little or too late. "The Pentagon is doing this because it's not always economically viable to invest the capital expenditure at the beginning of the process, and the U.S. ought to accelerate its access to these minerals," added Daniels. Such strategic investment in rare earths and critical minerals is a crucial step in securing our domestic supply chain and enhancing national security. Still, it is just part of the solution. "The defense industry depends on these strategic materials for everything from weaponry, base operations, to communications and other additional technologies," noted David Klanecky, CEO of lithium battery recycling firm Cirba Solutions. "Investment by the Department of Defense demonstrates a prioritization of this key market, brings urgency to the sector, and underscores the importance of developing a reliable supply at home rather than depending on raw material imports from foreign entities of concern." Waste Not, Want Not Without stable access to rare earths and critical minerals, our national security is at significant risk. To this end, the U.S. military needs to be far less disposable. As with consumer products that end up in landfills, a vast amount of valuable materials is never harvested and reused. "It is also important to look at the supply chain holistically and invest in all domestic manufacturing," Klanecky added. "For example, battery recycling can significantly boost domestic production and refinement of critical minerals, and it is one of the most immediate and scalable ways to secure supply and keep valuable materials in circulation in the U.S. long after they've been extracted." More Efforts Need To Be Made The $400 million investment by the Pentagon should be viewed as a positive first step, but it is far from resolving a problem that has been decades in the making. "The one mining project won't be enough to fulfill all demand for all rare earths that are used in advanced technologies," warned Daniels. "But it is a big step in the right direction," Daniels continued. "Between this type of mining and the advancements in recycling, we can achieve independence for many of our most critical rare earths. For instance, with coal ash leaching in the United States, we could generate enough germanium to supply all of our Semiconductor, Photovoltaic, and Fiber Optic cable needs." The growing need for rare earths is just one of several problems that the Pentagon faces, along with manufacturing supply chain challenges, an aging workforce at America's shipyards, and cost overruns on nearly all its programs. However, the demand for rare earths needs to be taken as seriously as the other issues, yet there is no easy solution. "Rare earth and critical minerals are essential to powering today's modern and digital world. Meeting the growing demand for these materials will require a comprehensive strategy that includes investment, partnerships, and an overall diversified approach across extraction, refinement, and recycling," said Klanecky. "Taking this holistic view of the supply chain is necessary if the U.S. wants a long-term solution to creating a stable domestic supply and enabling the country to achieve national security goals."
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
MP Materials commences $500 million public offering of common stock
(Reuters) -MP Materials said on Wednesday it would sell $500 million of its common stock, a day after the U.S. rare earths miner inked a supply deal with Apple. Shares of MP Materials fell 5.8% in extended trade. They have surged 275% so far this year, giving the company a market value of $9.57 billion. The $500 million agreement with Apple is a coup for MP and a rare investment by a tech company aiming to reduce its supply risks for rare earth magnets. The Las Vegas-based company also signed a multibillion-dollar agreement with the U.S. Department of Defense last week as the government seeks to reduce its reliance on China, which restricted rare earths exports in April in response to President Donald Trump's tariffs. Though the U.S. and China reached a deal in June that has resolved much of the rare earths dispute, broader trade tensions continue to underscore demand for non-Chinese supply. The Pentagon deal did not require MP Materials to issue stock for the general public. MP said it intends to use net proceeds from the offering to fund growth opportunities and for general corporate purposes. The company said it would grant underwriters a 30-day option to purchase up to an additional 15% of its shares. J.P. Morgan and Goldman Sachs are acting as lead joint book-running managers in the stock sale, while Morgan Stanley is another book-running manager. 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
