MP Materials (MP) Stock Explodes 20% After Landing Massive Apple Deal

TLDR

Table of Contents

MP Materials stock jumped 20% to a record closing high of $58.22 after announcing a $500 million deal with Apple
Apple committed to purchase recycled rare-earth magnets from MP starting in 2027, with $200 million prepayment
The deal includes expanding MP’s Texas facility capacity and developing a supply line at their California site
MP stock has surged 91% over the past month following a $400 million Defense Department investment
Wall Street analysts are raising target prices again as the stock started 2025 at around $16 per share

MP Materials stock rocketed 20% Tuesday after landing a massive $500 million deal with Apple. The rare-earth metals miner closed at $58.22, hitting a record high.

Apple announced it would purchase recycled rare-earth magnets from MP Materials over multiple years. The tech giant will make a $200 million prepayment as part of the agreement.

After 5 years of technical collaboration, we’re proud to announce a $500M agreement with @Apple to supply 🇺🇸-made rare earth magnets from 100% recycled materials
Production at our Fort Worth facility, Independence, begins 2027 and will ultimately support hundreds of millions of… pic.twitter.com/et5gBA5oZO
— MP Materials (@MPMaterials) July 15, 2025

The partnership focuses on building out Apple’s US supply chain capabilities. Rare-earth magnets are crucial components in smartphones, computers, and other electronics.

MP will expand its magnetics facility in Fort Worth, Texas to meet Apple’s demand. The companies will also develop a joint supply line to process recycled materials at MP’s Mountain Pass, California site.

Shipments are expected to begin in 2027. Apple CEO Tim Cook called rare-earth materials “essential for making advanced technology.”

The Apple deal comes just days after MP secured a $400 million investment from the US Department of Defense. That deal made the Pentagon MP’s largest shareholder and established a price floor for the company’s products.

Supply Chain Strategy

MP’s stock has been on a tear, gaining 91% over the past month alone. The company started 2025 trading around $16 per share and has now surged 273% year-to-date.

The recycling component represents a new venture for MP Materials. Currently, the company mines rare-earth materials in California and produces magnets in Texas.

Recycling plays an important role in mature metals supply chains. It accounted for almost 10% of US copper consumption in 2024, according to the US Geological Survey.

The process reduces waste and eases pressure on miners. It also helps reduce reliance on foreign suppliers, which is particularly important for rare-earth materials.

Market Dynamics

China dominates the global rare-earth market, controlling about 85% of refining capacity. MP Materials is the largest producer in the Western Hemisphere, but still sends some concentrate to China for processing.

Apple stock rose 0.2% on the news while broader markets declined. The S&P 500 fell 0.4% and the Dow Jones dropped 1%.

D.A. Davidson analyst Matt J. Summerville noted the deal “continues to expand on MP’s commercial momentum.” Apple becomes the anchor tenant for MP’s Texas facility expansion.

Wall Street analysts are scrambling to keep up with MP’s rapid gains. Target prices started the year around $30 per share but jumped to $55 after the Defense Department deal.

The Apple partnership will likely force analysts to raise targets again. The stock’s meteoric rise has caught many by surprise.

Apple has committed to spending over $500 billion in the US to expand domestic manufacturing capacity. The company faces pressure from President Trump, who has threatened 25% tariffs on overseas-made iPhones.

MP Materials went public in 2020 and has become a key player in US rare-earth production. The company’s California mine and Texas processing facility form a domestic supply chain that’s increasingly valuable.

The $500 million Apple commitment represents a major validation of MP’s business model and growth strategy.

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