MP Materials (NYSE:MP) stock is surging in Tuesday’s session, adding further gains to what has already been a mightily impressive haul in 2025; year-to-date, shares of the US–based rare‑earth materials company are up by 288%.
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The latest uptick comes in the wake of another investor-pleasing development. MP disclosed that it has reached an agreement with Apple, under which the company will commit $500 million to help speed up the development of a domestic rare earth supply chain. Apple will purchase “American-made” rare earth magnets from MP, aligning with its broader commitment to invest $500 billion in the US over the next four years. While MP hasn’t begun commercial magnet production yet, it plans to start later this year.
The company will supply Apple with magnets manufactured at its Independence facility, using recycled feedstock sourced from its Mountain Pass site in California. To support this effort, MP plans to construct a commercial-scale recycling line capable of handling magnet scrap and materials recovered from end-of-life electronics. Shipments to Apple are set to begin in 2027, with production scaling up to support hundreds of millions of Apple devices.
Recall, just last week MP announced that the US Department of Defense (DoD) had agreed to take a 15 percent equity stake – worth $400 million – in the company, making it the biggest shareholder. The DoD also committed to purchasing MP’s output for the next decade at twice the current market price. The move is part of a broader push to establish a domestic rare earth magnet supply chain and reduce US dependence on foreign suppliers.
Back to the AAPL deal, Baird analyst Ben Kallo notes that the tech giant is “not only one of the most iconic companies in the world, but also a leader in sustainability initiatives and supply chain security.” The point is that other major companies requiring magnets – whether in tech, aerospace and defense, automotive, or broader industrial manufacturing – might view MP as an attractive partner.
Factoring in the significant run-up in MP shares, in a prior note updating estimates to reflect the DoD partnership announcement, Kallo mentioned that he would prefer to be buyers on pullbacks. “That said,” Kallo goes on to add, “we note that this commercial agreement came much quicker than we anticipated which we see as a positive for both magnet demand and selling out the remaining magnet capacity.”
Bottom line, Kallo maintained an Outperform (i.e., Buy) rating on MP shares along with a $52 price target. Given today’s surge, the shares are now trading 13% above that price. (To watch Kallo’s track record, click here)
Likewise, the Street’s overall take offers something of a conundrum; on the one hand, MP stock claims a Strong Buy consensus rating, based on a mix of 6 Buys and 2 Sells. However, the $40.83 average target now sits 32% below the current share price. It will be interesting to see whether analysts update their targets or downgrade their ratings shortly. (See MP Materials stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.