Rare-Earth Moves In China Pushes MP Materials Stock Higher

Core Insights - MP Materials experienced an 8% stock increase following China's new export restrictions on rare-earth elements, raising concerns over supply shortages and rekindling U.S.-China trade tensions [2] - The U.S. government has invested $400 million in MP Materials, positioning the company to benefit from initiatives aimed at reducing reliance on Chinese supplies [2] - MP Materials is strategically important for the U.S. critical minerals supply chain, operating the only rare-earth mine and processing facility in the country [5] Company Performance - In Q2 2025, MP Materials reported a 119% year-on-year increase in NdPr oxide production, with sales volumes tripling to 443 metric tons and revenue rising 84% to $57.4 million [6] - The company anticipates a sequential production increase of 10%–20% in Q3 2025 and aims to scale sales of high-value magnet alloys to 10,000 metric tons annually by 2028 [6] - MP Materials holds nearly $2 billion in cash, providing flexibility for expansion and research and development [6] Market Context - China's rare earth exports fell by 31% in September 2025 compared to August, reaching 4,000.3 tonnes, the lowest since February 2025 [4] - New regulations from China will require licenses for the export of rare earth magnets and related products starting December 1, 2025 [4] - The geopolitical landscape has intensified the focus on securing a domestic supply of rare earth materials in the U.S. [4] Strategic Partnerships - The U.S. Department of Defense became MP's largest shareholder following a $400 million equity investment aimed at enhancing the company's magnet production capacity [5] - MP has entered into a $500 million supply agreement with Apple, using prepayments to finance its new Independence facility in Texas for manufacturing finished rare-earth magnets [5]