Rare Earth Stock Up Over 50% After Pentagon Deal

Core Insights - MP Materials Corp (NYSE:MP) has seen a significant stock increase of 51.6%, trading at $45.56, following a public-private partnership with the Department of Defense, where the Pentagon is purchasing $400 million of preferred stock, making it the largest shareholder [1] - JPMorgan Chase and Goldman Sachs are contributing to a $1 billion funding line for a new magnet factory and upgraded mine in California [2] - The stock is experiencing its largest single-session increase ever, reaching a two-year peak of $48.11, with a year-to-date increase of 195%. A short squeeze is likely contributing to this rally, with 30.92 million shares sold short, accounting for 23% of the stock's total float [3] - Options trading activity is significantly high, with 120,000 contracts changing hands, which is 13 times the average intraday volume. The August 35 put is the most popular, indicating sell-to-open activity, while the April 17, 2026 30-strike put is also popular, suggesting options traders are establishing price floors for both short- and long-term [4]