MP Materials (MP +4.85%) went public in November 2020 through a merger with a special purpose acquisition company (SPAC). On the day of its listing on Nov. 18, 2020, shares of MP Materials closed at $15.09 apiece. Not much changed over the years, with the mining stock closing the last trading of 2024 at $15.60 per share.
2025 has been a different ballgame altogether. MP Materials stock surged 500% at one point in the year and is up 263% as of this writing.
If you'd invested $10,000 in MP Materials stock five years ago and remained invested, your money would be worth nearly $33,900 today.
Although MP Materials isn't the only rare earth stock that surged in 2025, it was a game-changing year for the company, positioning it at a solid strategic advantage versus its peers.
Image source: Getty Images.
Why MP Materials is an unstoppable stock
The U.S. currently relies heavily on China for rare earth elements, which have crucial applications in electronics, semiconductors, electric vehicles, renewable energy technology, medical imaging, and military and defense. To bolster domestic supply, the Trump administration is supporting local critical minerals miners, even acquiring stakes in some.
In July 2025, the U.S. Department of Defense (DOD, also rebranded as the Department of War) became the largest shareholder in MP Materials, acquiring a 15% stake through a $400 million investment. MP Materials also received a $150 million loan and other financial commitments to construct a new rare-earth magnet manufacturing facility, known as the 10X facility. The DOD will purchase all magnets produced at the 10X facility for 10 years.
NYSE: MP
Key Data Points
MP Materials also has a magnet supply agreement with tech giant Apple and has just partnered with the DOD to establish a joint venture in Saudi Arabia to build a rare-earth facility.
MP Materials owns one of the richest rare earth mines in the world, The Mountain Pass, and is about to start magnet production by the end of 2025. Its dominance and the government's backing make MP Materials one of the few high-risk, high-reward stocks you'd want to remain invested in.
