MP Materials Stock Shoots Up 14% as Trump Targets Rare Earths Supply Boost

U.S.-based MP Materials (MP) surged as renewed focus from President Donald Trump on rare earth elements reignited investor interest. The rally followed a Bloomberg report that the U.S. government is considering new initiatives to bolster its domestic rare earth minerals supply chain. The move is seen as a major tailwind for MP, positioning MP as a key player in the national push for supply chain security.

For context, rare earths are a group of 17 chemically similar metallic elements found in the Earth’s crust. Despite their name, most are not rare—they’re just difficult and expensive to mine.

MP Stock in Spotlight

MP stock surged nearly 14% during Thursday’s regular session and added another 8% in after-hours trading. Year-to-date, shares of MP Materials have surged almost 90%, fueled by Trump’s push to prioritize rare earth production and stockpiling. Trump recently emphasized the importance of strengthening domestic production and stockpiling rare earths to reduce U.S. reliance on China.

According to the latest reports, U.S. officials are considering invoking the Defense Production Act to fund rare earth projects, including mining and processing, to strengthen the domestic supply chain. As the only U.S. rare earth producer, MP Materials stands to benefit, with reports suggesting Deputy Defense Secretary Steve Feinberg is working to secure funding for the Nevada-based firm. The move reflects rising concerns over China’s control of the market and the critical role of rare earths in defense and clean energy.

Meanwhile, rare earth minerals have been a key issue in the trade war between the U.S. and China. In response to Trump’s tariffs, Chinese President Xi Jinping stopped exports of many rare earth metals and magnets in April. This led to major problems for global supply chains, especially for carmakers, aerospace companies, chip producers, and defense contractors.

However, Trump said China has agreed to restart shipments of magnets and rare earths after trade talks in London.

Is MP Materials a Good Stock to Buy?

According to TipRanks, MP stock has received a Strong Buy consensus rating, with six Buys and two Holds assigned in the last three months. The average MP Materials stock price target is $27.86, suggesting a potential downside of 4.5% from the current level.

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