MP Supplies (NYSE: MP) was on a tear in 2025. By the top of the yr, shares of the rare-earth miner and everlasting magnet producer had been up 224%. At one level in October 2025, shares of MP had climbed about 440%, earlier than a broader sell-off available in the market despatched the inventory again to earth.
MP inventory is presently beating the market, with a roughly 10.5% acquire up to now this yr. Even with coverage winds at its again, nevertheless, a couple of issues must go proper for this rare-earth firm to have one other breakout yr.
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MP Supplies is a U.S.-based rare-earth firm that owns and operates the Mountain Move mine in California, which is presently one of many solely large-scale rare-earth mines within the nation. It additionally operates a facility referred to as Independence in Fort Price, Texas, that may flip rare-earth materials into everlasting magnets that generate their very own magnetic subject.
MP presently sits at a crossroads of geopolitical and financial currents. Uncommon-earth magnets are important for tech, protection, and clear vitality sectors. However for years the U.S. has relied closely on China for magnet provide, which has given Beijing leverage over the U.S.
In July 2025, the Division of Protection (DoD) invested $400 million in MP, turning into its greatest shareholder, and entered a public-private partnership with the corporate. Beneath the settlement, the DoD will purchase 100% of the magnets produced at its second U.S. magnet manufacturing facility for 10 years after the ability is constructed. It additionally assured a beneficiant value flooring of $110 per kilogram for MP’s neodymium-praseodymium (NdPr) product.
That information helped MP inventory end July over 100% larger.
For those who consider rare-earth demand will escalate and the U.S. will proceed to search for methods to cut back dependence on China, MP seems to be like a long-term purchase.
That mentioned, the metals inventory might get bumpy within the close to time period.
At its present value (about $61 per share), MP trades at 43 occasions gross sales, which implies traders are paying in the present day for income the corporate nonetheless has to show it might probably earn. For perspective, the typical P/S ratio for metals and mining firms is about 3.8.
The settlement with the DoD is essential to serving to MP turn out to be worthwhile within the close to time period, but it surely is not assured to final in its present type. The settlement itself says that continued funding to MP remains to be topic to Congress’s approval. Any change in governmental or funds priorities might likewise have an effect on the cope with MP.
