MP Materials (MP -4.06%) is the only U.S. producer of rare earth materials. Rare earths are a group of 17 elements that are essential for products such as consumer electronics, electric vehicles, and military applications.
MP Materials owns the only operational rare earths mine in the U.S., at Mountain Pass, California. The company has a fully integrated business spanning the extraction, refining, and manufacturing of rare earths. It also has a state-of-the-art manufacturing facility in Texas where it combines rare earths with other metals to produce powerful magnets.
In 2025, the U.S. Department of Defense (DoD) agreed to buy $400 million of preferred stock in MP Materials. This investment supports the expansion of its processing capacity and the construction of a second magnet manufacturing facility in the U.S. to supply key components to military weapons systems.
In mid-2025, MP Materials also signed a $500 million deal with tech titan Apple (AAPL -1.09%) to develop a recycling facility for rare earth magnets.
These and other deals have sent shares of MP Materials soaring. Here's everything you need to know about how to invest in the rare earths company.
How to buy
How to buy MP Materials stock
Anyone interested in buying MP Materials stock can purchase shares in their brokerage account. Here's a step-by-step guide to adding the rare earth company to your portfolio.
- Step 1: Open your brokerage account: Log in to your brokerage account, where you handle your investments.
- Step 2: Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Step 3: Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Step 4: Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Step 5: Submit your order: Confirm the details and submit your buy order.
- Step 6: Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Should I invest?
Should I invest in MP Materials?
You need to dig into a company and thoroughly research it before buying its stock. This due diligence process will hopefully increase your conviction that the company can be a winning investment. However, you might uncover something about the company that changes your opinion on buying shares.
With those factors in mind, here are some reasons you might want to invest in MP Materials:
- You want to invest in a company producing the rare earths crucial to the energy industry, transportation sector, technology space, and the military.
- You believe that the mining company can play a strategic role in helping the U.S. reduce its reliance on foreign supplies of rare earths.
- You think MP Materials can increase its revenue rapidly, which should enable it to become consistently profitable.
- You're comfortable with investing in a company that went public through a special purpose acquisition company (SPAC) merger.
- You don't need dividend income right now.
On the other hand, here are some reasons you might choose not to invest in MP Materials.
- You're leery of investing in companies that went public through a SPAC.
- You want to invest only in companies that consistently generate profits.
- You're in or nearing retirement and require dividend income from your investments.
- You're concerned about the company's valuation following the significant rise in its share price.
Profitability
Is MP Materials profitable?
Digging into a company's profitability is a crucial aspect of investment research. Increasing profitability is typically the primary factor driving a company's stock price over the long term.
MP Materials wasn't consistently profitable as of mid-2025. In 2024, the rare earths company recorded a net loss of $65 million on $204 million of revenue. That was down from $24 million of net income in 2023 on $253 million in revenue.
The company also reported a net loss of almost $23 million in the first quarter of 2025. That reversed the more than $16 million of net income it posted in the year-ago period, despite its revenue jumping 25% to almost $61 million in the first quarter of 2025.
Rising costs have affected the company's profitability over the past year. One factor driving its increased costs is the growing employee headcount required to support its expansion. As sales grow due to the company's expansion initiatives with Apple, the Department of Defense, and other partners, its profitability should improve.
Although the company isn't consistently profitable, it maintains a solid balance sheet. MP Materials ended the first quarter with almost $760 million in cash, cash equivalents, and short-term investments on its balance sheet, against approximately $910 million in debt.
Meanwhile, the DoD bought $400 million of the company's preferred stock in mid-2025. That provided it with a cash infusion to help expand its business.
Dividends
Does MP Materials pay a dividend?
As of mid-2025, MP Materials had yet to initiate a dividend payment. The company wasn't consistently profitable and needed to retain cash to fund its operations and expansion.
ETF options
ETFs with exposure to MP Materials
Lots of investors prefer a more passive investment approach than directly owning stocks that they must actively monitor. Buying an exchange-traded fund (ETF) can be a great way to gain some passive exposure to MP Materials.
As of mid-2025, 96 ETFs held more than 30 million shares of the rare earths company, according to ETF.com. The iShares Core S&P Small Cap ETF (IJR -1.11%) was the largest holder, at 7.2 million shares. However, this ETF had only a small allocation to MP Materials, around 0.5%.
A better ETF option for investors seeking more exposure to MP Materials is the VanEck Rare Earth and Strategic Metals ETF (REMX -6.66%). This ETF focuses on companies involved in the production, refining, and recycling of rare earth and strategic metals and minerals.
MP Materials was its top holding as of mid-2025, at 11.6% of its net assets. With an expense ratio of 0.58%, this fund is a solid option for those seeking to invest in the growing demand for rare earth metals.
Stock splits
Will MP Materials stock split?
MP Materials didn't have an upcoming stock split as of mid-2025. The rare earths company had yet to complete a stock split since it went public through a SPAC merger in 2020.
The company's stock price has soared since going public. It was up about 500% by mid-2025 from its initial public offering price. However, that surge has driven its stock price up to only around $60 a share, which is still a relatively accessible level for most investors. If the stock continues to soar, it might consider splitting to make its shares more accessible to investors.
Related investing topics
The bottom line on MP Materials
MP Materials is the only U.S. producer of rare earths, which are crucial to our modern society and defense. The company's strategic position in the U.S. has made it a magnet for customers seeking to secure a greater portion of their rare earth supply domestically. That positions it to grow rapidly in the coming years, which could continue driving its shares higher.
FAQ
Investing in MP Materials FAQ
Is MP Materials a good investment?
MP Materials has been a very good investment since it went public through a SPAC merger in 2020. Its share price was up about 500% in mid-2025, or more than 40% annualized. Driving that robust return has been the growing demand for the rare earths it produces, as well as the company's increasing strategic importance as the only U.S. producer of those metals.
The company could continue to be a good investment in the future. It signed deals with Apple, the Department of Defense, and others to provide rare earths in the coming years. Those agreements should drive strong revenue growth for the company, which should also boost its profitability. That growth could drive its stock price even higher.
However, shares have run up quite a bit, especially in 2025 (about 275% year to date by mid-July). Given its significant run-up, shares could give back some of their gains if the company reports disappointing financial results.
MP Materials' combination of promise, price surge, and uneven profitability makes it a higher-risk stock with a high reward potential.
How to invest in precious metals?
There are many ways to invest in precious metals, including:
- Buying the physical metal in the form of coins or bars
- Purchasing jewelry made from precious metals
- Investing in the shares of a mining, streaming, or royalty company focused on precious metals
- Investing in an exchange-traded fund (ETF) focused on holding precious metals or one that invests in the stocks of companies that mine precious metals
What is the ticker for MP Materials?
MP Materials trades on the New York Stock Exchange (NYSE) under the stock ticker MP.
Is MP Materials publicly traded?
Yes, MP Materials is a publicly traded company. It became a public company in 2020 when it completed a business combination with SPAC Fortress Value Acquisition Corp.
