MP Materials stock delivered a jaw-dropping performance in July 2025, soaring 84.9% in just one month, fueled by game-changing partnerships with the U.S. Department of Defense and Apple. As of early August, MP Materials stock has surged over 338% year-to-date, solidifying its position as one of the hottest stocks in the rare-earth sector.
This surge in MP Materials (NYSE: MP) comes as the U.S. accelerates efforts to secure a stable domestic supply of rare-earth elements—crucial materials used in everything from smartphones to missile systems. Here’s a closer look at the developments driving this momentum and what investors can expect next.
Department of Defense Deal Secures Strategic Future
In a transformative move, the U.S. Department of Defense (DoD) inked a strategic partnership with MP Materials to construct a second domestic magnet manufacturing facility, dubbed the “10X Facility.” This project marks a significant milestone in reshoring America’s critical mineral supply chain.
As part of the deal, the DoD:
- Purchased $400 million in preferred convertible stock,
- Secured a warrant for up to 15% equity in MP Materials,
- Extended a $150 million loan to enhance production at the company’s Mountain Pass site in California.
In addition, the DoD will guarantee a price floor of $110/kg for neodymium and praseodymium (NdPr) products—key rare-earth elements used in defense applications. The deal also ensures that 100% of the output from the 10X Facility will be bought by U.S. defense and commercial clients under a 10-year agreement, providing long-term cash flow stability.
This commitment has not only enhanced investor confidence in MP Materials stock, but also positioned the company as a national asset in the global rare-earth race.
Apple Partnership Amplifies Growth Prospects
The bullish wave continued when Apple signed a rare-earth magnet supply agreement with MP Materials. The tech giant committed to purchasing $500 million worth of magnets produced at MP’s Texas facility. This long-term partnership will catalyze expansion at that site, further embedding MP Materials in the global tech supply chain.
Following the announcement, MP Materials launched a $500 million stock offering—which was quickly raised to $650 million due to overwhelming investor demand. The capital will be used to fund expansions, including the high-profile 10X Facility.
This dual endorsement—by the U.S. government and Apple—has significantly boosted MP Materials stock outlook and underlined its relevance across both defense and commercial sectors.
What This Means for Investors
MP Materials is no longer just a niche rare-earth supplier. These new developments signal its emergence as a strategic cornerstone of U.S. manufacturing and supply chain independence.
The partnerships guarantee cash flow, ensure domestic demand, and provide capital for aggressive expansion—all key drivers behind the explosive growth in MP Materials stock.
With a diversified base of government and commercial clients, including defense contractors and Apple, the company is now viewed as a safer and more lucrative long-term investment in a volatile global market.
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