MP Materials

MP

Market cap $11B

MP Materials has become a key partner of the Department of Defense in the battle to secure a domestic supply of critical rare-earth materials and magnets. The company's future is secured by long-term supply agreements with very well-funded partners.

MP is building a strategic supply chain that turns raw earth ore into high-performance magnets. The company has formed partnerships with both the Pentagon and Apple.

At least one Wall Street analyst thinks the recent dip in the share price is a great buying opportunity. MP Materials has long-term agreements in place that secure its future.

November was a challenging month for stocks, as macroeconomic concerns and concerns about an AI bubble weighed on prices. Most S&P 500 NYSEARCA: SPY stocks moved lower, but there is good news.

MP Materials owns and operates one of the only rare earth metal mines in the United States. The company is backed by the Pentagon and has strategic partnerships with blue chip companies.

MP Materials has dropped by over 20% since I last checked in October, which adds to its attractiveness, as valuations now look more appealing. Moreover, China's recent decision to expand the scope of rare earth export restrictions, which was subsequently postponed, underlines continued security concerns that work in MP's favour. The company's revenues dropped in Q3 2025, as it halted sales to China, but a pickup in NdPr revenues and initiation of sales in the magnetics segment still bode well.

Many investors vividly remember the dot-com bubble of the late 1990s. During that era, speculative websites with no revenue collapsed, wiping out billions in market value.

The rare-earth play is gaining renewed investor attention after receiving multiple analyst upgrades that highlight its strategic value and attractive risk-reward profile.

A year ago, MP Materials was at the mercy of China. Today, it's backed by cash -- and price guarantees -- from the U.S. government.

MP's expanding production, DoW-backed deals and a clearer path to profitability make it stand out in the rare earth race against USAR.