MP Materials Stock Soars 255% On Apple’s $500 Million Deal

MP Materials stock has taken the stock market by storm, soaring 255% in 2025. This massive jump follows a $500 million deal with Apple to supply rare-earth magnets, with shipments starting in 2027. Investors are excited, but some warn the stock might be 26% overvalued, making it a hot topic for discussion.

The deal with Apple is a big win for MP Materials, the only U.S. company mining and processing rare-earth materials. Pair that with a $400 million investment from the Department of Defense, and it’s clear why the stock market is buzzing.

Let’s explore what’s driving this surge and what it means for the company’s future.

The Big Apple Deal

MP Materials scored a $500 million contract with Apple to deliver rare-earth magnets. These magnets power devices like iPhones and electric cars, with shipments set to begin in 2027. It’s a huge step for a U.S. company in a market usually led by China.

This deal boosts MP Materials’ reputation and promises steady revenue. It also helps reduce U.S. dependence on foreign suppliers, a growing concern in the stock market. Apple’s trust in MP Materials signals strong future demand.

Government Backs MP Materials

The Department of Defense is investing $400 million in MP Materials, making it the company’s biggest shareholder. It’s also lending $150 million to fuel growth. This support shows the government sees MP Materials as vital to national security.

The DoD guarantees $110 per kilogram for neodymium and praseodymium, almost double today’s price. It wants MP Materials to increase magnet production to 10,000 metric tons, a tenfold jump. This could reshape the stock market for rare-earth companies.

Who Is MP Materials?

MP Materials stands alone as the only U.S.-based rare-earth mining and processing operation. Bought out of bankruptcy ten years ago, it’s now a key player in a critical industry. The company mines materials needed for tech and defense, making it unique in the stock market.

Its Mountain Pass mine in California is the heart of its operations. Rebuilding from scratch took grit, and now MP Materials is cashing in on global demand. Still, it faces tough competition from abroad.

Financial Wins and Losses

In early 2025, MP Materials’ revenue jumped 25% to $61 million. That’s good news for MP Materials stock, showing solid growth. But the company still lost $23 million in that quarter, adding to a $65.4 million loss from 2024.

High production costs are the main culprit. With expenses running 50% higher than Chinese rivals, profits remain elusive. Investors in the stock market need to watch if growth can outpace these losses.

Challenges Facing MP Materials

China controls over 90% of the rare-earth market, a big problem for MP Materials. Their lower costs squeeze MP Materials, which spends more to produce the same materials. This gap threatens its place in the stock market.

The company also relies on Shenghe Resources, a Chinese firm, for 60% of its revenue. Scaling production to meet DoD goals could cost $4 billion, a steep hill to climb. These hurdles could slow the rise of MP Materials stock.

Dependence on China

Shenghe Resources made up 60% of sales in early 2025, down from 80% in 2024. That’s progress, but it’s still a heavy reliance on one buyer. Breaking free could stabilize MP Materials stock long-term.

Scaling Up Production

The DoD wants a tenfold increase in magnet output, a bold target. Experts estimate it’ll take $4 billion to get there. Raising that cash is a challenge that could sway the stock market outlook.

Is the Stock Overvalued?

Some experts say MP Materials stock is 26% overvalued after its 255% surge. The price has jumped faster than profits, sparking debate in the stock market. Growth potential exists, but risks loom large.

The Apple deal and DoD backing fuel optimism. Yet, losses and high costs suggest caution. Investors must decide if MP Materials stock matches its current hype.

Final Thoughts

MP Materials’ stock skyrocketed 255% in 2025, thanks to a $500 million deal with Apple and support from the Department of Defense. It’s a rare U.S. player in a tough market, with big opportunities ahead. Still, challenges like China’s dominance and funding needs temper the excitement.

The stock market will keep watching as MP Materials balances growth and costs. It’s a story of potential meeting reality. In this article, we don’t give financial advice, just the facts to help you think it over.

Disclaimer:

This content is for informational purposes only and not financial advice. Always conduct your research.