Shares of MP Materials (MP +1.91%) have risen around 300% so far in 2025. That said, they are also currently about 30% below their high-water mark for the year. It would be an understatement to say that 2025 has been an exciting one for this specialty metals producer.
But if you can handle the volatility, there's likely to be a material long-term growth opportunity for the company. Here's what you need to know.
What does MP Materials do?
MP Materials mines for and processes what are known as rare earth metals. These metals are vital to the technology industry, where they are used in products such as cellphones and military defense systems. That's a significant divide, but it highlights the importance of these metals to both daily life and the safety and security of entire nations.
Image source: Getty Images.
In fact, earlier in 2025, automakers warned that a lack of access to rare earth metals could lead to a supply chain snarl.
This brings up the second most important part of MP Materials' business: It is located in the United States, a politically and economically stable region. The vast majority of rare earth metals currently come from China. The tariff fights currently unfolding globally have led China to utilize rare earth metals as a bargaining chip. MP Materials could act as a reliable alternative supply option to China.
The U.S. government gets involved
The tariff spat, which has China threatening to limit its rare earth metals supplies, began in Washington, D.C. But Uncle Sam isn't just taking this threat in stride. It has invested in MP Materials, providing the company with a $400 million investment along with other development incentives. This was followed by an agreement with Apple that is expected to generate as much as $500 million in revenue.
Those pieces of good news, meanwhile, led to a stock advance that MP Materials took advantage of by selling $650 million of new shares.This means that MP Materials has approximately $1.5 billion in funding to further its growth plans, which is good news, as the business is still in the start-up phase.
That said, management has stated that it expects to be profitable in the fourth quarter of 2025 "and beyond." This could be an important turning point for the business, even though capital investment activity is likely to remain elevated for years to come.
NYSE: MP
Key Data Points
Even if a resolution on the tariff front stops China from restricting access to its rare earth metals, MP Materials will likely continue to see strong demand. Demand for these metals is expected to increase in the years ahead, and the mere fact that China may be willing to restrict access is enough for companies to seek out alternative suppliers.
MP Materials built its business specifically with this in mind, and the story is unfolding almost perfectly -- and perhaps even more quickly than originally expected.
MP Materials is only for aggressive types
MP Materials could have a very bright future, but at this point, the business will need to grow into its valuation following the swift stock price advance. Wall Street has clearly keyed in on the story, so this is not a suitable stock for conservative investors. It will require a long-term commitment that may involve holding through material share price volatility, as seen in 2025.
But if you include this stock as part of a diversified portfolio, it could help you build a million-dollar nest egg. Just go in knowing that you'll need to think in decades, not days. The chance to "get rich quick" is probably over at this point.
