Is MP Materials Stock a Buy Now?

MP Materials (NYSE: MP) was connected a teardrop successful 2025. By the extremity of the year, shares of the rare-earth miner and imperishable magnet shaper were up 224%. At 1 constituent successful October 2025, shares of MP had climbed astir 440%, earlier a broader sell-off successful the marketplace sent the banal backmost to earth.

MP banal is presently beating the market, with a astir 10.5% summation truthful acold this year. Even with argumentation winds astatine its back, however, a fewer things request to spell close for this rare-earth institution to person different breakout year.

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MP Materials is simply a U.S.-based rare-earth institution that owns and operates the Mountain Pass excavation successful California, which is presently 1 of the lone large-scale rare-earth mines successful the country. It besides operates a installation called Independence successful Fort Worth, Texas, that tin crook rare-earth worldly into imperishable magnets that make their ain magnetic field.

MP presently sits astatine a crossroads of geopolitical and economical currents. Rare-earth magnets are captious for tech, defense, and cleanable vigor sectors. But for years the U.S. has relied heavy connected China for magnet supply, which has fixed Beijing leverage implicit the U.S.

In July 2025, the Department of Defense (DoD) invested $400 cardinal successful MP, becoming its biggest shareholder, and entered a public-private concern with the company. Under the agreement, the DoD volition bargain 100% of the magnets produced astatine its 2nd U.S. magnet mill for 10 years aft the installation is built. It besides guaranteed a generous terms level of $110 per kilogram for MP's neodymium-praseodymium (NdPr) product.

That quality helped MP banal decorativeness July implicit 100% higher.

If you judge rare-earth request volition escalate and the U.S. volition proceed to look for ways to trim dependence connected China, MP looks similar a semipermanent buy.

That said, the metals banal could get bumpy successful the adjacent term.

At its existent terms (about $61 per share), MP trades astatine 43 times sales, which means investors are paying contiguous for gross the institution inactive has to beryllium it tin earn. For perspective, the mean P/S ratio for metals and mining companies is astir 3.8.

The statement with the DoD is important to helping MP go profitable successful the adjacent term, but it isn't guaranteed to past successful its existent form. The statement itself says that continued backing to MP is inactive taxable to Congress's approval. Any alteration successful governmental oregon fund priorities could likewise impact the woody with MP.