MP Materials Stock Soars 358% on U.S. Reshoring Push, But Risks Remain
MP Materials, the U.S.'s sole operational rare earth mine operator, has seen its stock soar 358% since late 2024, driven by the U.S. Government's push to reshore manufacturing. However, analysts caution about the stock's riskiness, trading at 48 times trailing 12-month sales.
The company's refining facilities are currently small, and planned improvements may not ensure significant independence from Chinese imports. Despite this, MP Materials has secured a significant agreement with Apple to supply magnets for its devices, with shipments starting in 2027.
MP Materials has also partnered with the U.S. Department of Defense to build the 10x Facility, expected to produce 10,000 kilograms of magnets annually once completed. This project, initiated in July 2025, aims to bolster the U.S.'s rare earth magnet supply chain. The Motley Fool's Stock Advisor team, however, has not included MP Materials in its list of the 10 best stocks for investors to buy now.
MP Materials' stock growth, fueled by government initiatives, has been remarkable. Yet, investors should be aware of the high expectations and potential risks. The company's success hinges on its ability to overcome production limitations and meet its ambitious targets, such as the 10x Facility and Apple supply agreement.
