Morgan Stanley Is Sweetening on MP Materials Stock Following ‘Historic Deal.’ Should You Buy MP Here?

Core Viewpoint - Morgan Stanley has upgraded MP Materials to "Overweight" due to a significant deal that positions the company as a key player in U.S. critical materials security [1] Company Overview - MP Materials is a rare-earth materials and magnetics company based in Las Vegas, Nevada, operating the Mountain Pass mine, the only large-scale rare-earth mining and processing facility in the U.S. [4] - The company produces rare-earth oxides, separated rare-earth metals, and permanent-magnet precursor materials, catering to high-tech markets such as electric vehicles, wind turbines, defense equipment, and robotics [5] Strategic Developments - MP Materials is establishing a fully domestic mine-to-magnet supply chain, with plans to commence commercial magnet production by late 2025, targeting a capacity of 7,000 tons [2] - A joint venture with the U.S. Department of Defense and Saudi miner Ma'aden enhances operational flexibility at no additional cost and may provide extra supplies of heavy rare earths [2][7] Market Performance - The stock has seen a remarkable rebound in 2025, with a year-to-date performance increase of 283.46%, making it one of the top performers among rare-earth and mining companies [6] - Despite this surge, the stock is currently trading 40% below its 52-week high of $100.25, reached on October 14, but has increased by 191.52% over the past year [6] Investor Sentiment - The transition from a pure mining operation to a vertically integrated rare-earth-to-magnet producer has garnered strong investor interest, particularly following the deal with the DOD, which positions MP as a central component of the U.S. domestic supply chain [7]