MP Materials Stock Surges: Here's Why

MP Materials Corp. (NYSE: MP) shares are trending on Friday.Pentagon Deal Drives Rare Earth RallyShares of the Las Vegas-based rare-earth materials company jumped 8.28% on Thursday, with an additional 0.10% increase during the pre-market session, reaching $77.21. The rally follows CEO James Litinsky‘s Tuesday CNBC Squawk Box appearance discussing the government partnership and national security implications.Timely Strategic PartnershipIn his CNBC interview, Litinsky explained, “Ours is really a different situation, which is we were executing well. There was a crisis and the Department of War came and said, we want a true public-private partnership with you, so let’s do a deal.”He stressed that the partnership wasn't about revisiting old agreements, but rather a timely and proactive collaboration driven by immediate national security concerns.This surge follows sector-wide momentum driven by Trump administration initiatives on critical minerals, building on the company's July partnership with the Department of Defense.Government Stakes Signal Strategic PriorityThe Trump administration is investing in critical mineral companies to strengthen national security.In July, MP Materials formed a game-changing $400 million partnership with the DOD, giving the Pentagon about 15% ownership.10X Facility Expansion Targets 2028MP Materials plans to increase magnet production by ten times at its “10X Facility,” aiming for 10,000 metric tons by 2028. The Pentagon has set a 10-year price floor of $110 per kilogram and guaranteed full purchase of the magnets.Apple Partnership Strengthens Commercial DemandApple Inc. (NASDAQ: AAPL) also committed $500 million in MP Materials, including $200 million in prepayments, to secure a rare earth magnet supply and reduce reliance on China.MP shares have surged 394.42% year-to-date and have ranged from $15.56 to $82.50 over the past year, with a market capitalization of $13.66 billion and an average volume of 10.88 million shares.With a strong Momentum in the 98th percentile, Benzinga’s Edge Stock Rankings indicate that REAL has a positive price trend across all time frames. Here is how the stock fares on other parameters.