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MP Materials Secures Major Investments
MP Materials, which owns the Mountain Pass mine in California—the only rare-earth metal mine in the U.S.—secured significant investments totaling $900 million in July 2025. This includes a $400 million investment from the Department of Defense, which will purchase neodymium-praseodymium (NdPr) oxide at a floor price of $110 per kilogram for a decade, and a $500 million partnership with Apple to supply magnets for hundreds of millions of devices starting in 2027.
Despite these backing deals, MP Materials is not currently profitable and lacks the manufacturing capacity needed to meet increasing demand. The company’s stock has risen nearly 350% this year, but analysts suggest a valuation of 83 times forward earnings might require significant advancements, such as the completion of a new production facility, to justify future price increases.
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