MP Materials' Strategic Role in Rare Earth Supply Chain
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 23 2026
0mins
Should l Buy MP?
Source: Fool
- Domestic Production Opportunity: The U.S. government's 'mine-to-magnet' strategy is investing in mining stocks, positioning MP Materials, the sole owner of a rare-earth mining and processing site in North America, to significantly enhance its market position amid rising domestic supply needs.
- Key Partnership Agreement: The landmark public-private partnership with the U.S. Department of Defense establishes a price floor of $110 per kilogram for NdPr products over the next decade, ensuring stable revenue while granting the DOD a 15% equity stake, thereby strengthening the company's financial foundation.
- Production Capacity Expansion: MP Materials has commenced commercial production of rare-earth metals and alloys at its Texas facility, currently producing 1,000 metric tons of magnets with plans to expand to 3,000 metric tons, and is developing the 10X facility to achieve an annual capacity of 10,000 metric tons, significantly boosting its competitive edge.
- Future Revenue Projections: Analysts project that MP Materials' revenue could exceed $508 million by 2026 and double to over $1 billion by 2028, presenting a compelling investment opportunity for aggressive investors despite execution risks associated with scaling manufacturing capacity amid recent stock price declines.
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Analyst Views on MP
Wall Street analysts forecast MP stock price to rise
11 Analyst Rating
11 Buy
0 Hold
0 Sell
Strong Buy
Current: 51.800
Low
55.27
Averages
76.13
High
94.00
Current: 51.800
Low
55.27
Averages
76.13
High
94.00
About MP
MP Materials Corp. produces specialty materials that are vital inputs for electrification and other advanced technologies. The Company owns and operates the Mountain Pass Rare Earth Mine and Processing Facility (Mountain Pass) located in California. It is also developing a rare earth metal, alloy and magnet manufacturing facility in Fort Worth, Texas (Independence Facility). The Company’s segments include Materials and Magnetics. The Materials segment operates Mountain Pass, which produces refined rare earth products as well as rare earth concentrate and related products. The Materials segment primarily generates revenue from sales of rare earth concentrate, primarily sold for further distribution to a single, principal customer in China, and sales of neodymium-praseodymium (NdPr) oxide and metal, primarily sold to customers in Japan, South Korea, and broader Asia. The Magnetics segment operates the Independence Facility, where it produces magnetic precursor products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Job Creation: This expansion will create more jobs in the U.S. and strengthen the country's manufacturing capabilities, with CEO Tim Cook framing the move as a testament to American ingenuity, reflecting the company's long-term commitment to U.S. manufacturing.
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