1 Reason to Hold on to MP Materials Stock Right Now

Core Viewpoint - MP Materials has experienced a significant stock price increase of 130% over the past three months, primarily driven by substantial funding news and strategic partnerships, making it a potential long-term hold for aggressive investors [1][6]. Company Overview - MP Materials specializes in mining and processing rare earth metals, which are essential for modern technology and national defense [3]. - The company operates mainly in the United States, providing a stable and reliable source of rare earth metals, reducing dependency on China, the largest global supplier [5]. Recent Developments - The U.S. government made a significant investment in MP Materials, followed by a supply agreement with Apple, which contributed to the stock's price surge and a successful public sale that raised approximately $1.5 billion [6]. - The capital raised will primarily be allocated towards necessary capital investments to grow the business, as MP Materials is currently operating at a loss [7]. Long-Term Growth Potential - While the recent stock price increase reflects positive developments, the actual growth opportunity for MP Materials will take years to materialize as the company builds its mining and processing capabilities [8][11]. - The influx of capital enhances the company's balance sheet, positioning it to capitalize on the long-term demand for rare earth metals and potentially gain market share as it expands operations [9]. Investment Considerations - Investors' decisions to hold or sell MP Materials stock may depend on their investment time frame, with long-term investors likely to benefit from the company's future growth potential [10][11].