Is MP Materials Stock Still a Buy After Its 224% Rally in 2025?

Key Points

• 2025 was a banner year for MP Materials as it secured landmark deals, including federal backing.

• MP Materials owns the largest rare earth mine in the U.S. and is inching closer to producing magnets.

• The company’s big goals for 2026 could send the rare earth stock much higher.

• 10 stocks we like better than MP Materials ›

Shares of MP Materials (NYSE: MP) erupted in 2025, surging more than 500% by mid-October before catching a breath. Even with that retreat, the stock ended the year with a stunning 223.8% gain, according to data provided by S&P Global Market Intelligence. MP Materials stock has maintained its momentum so far in 2026, rising by another 13%, as of this writing.

MP Materials emerged as a national champion for rare earths in 2025, backed by deep federal backing and unprecedented commercial deals.

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2026 could be another big year for the stock.

Image source: Getty Images.

The biggest catalysts for MP Materials stock in 2025

Rare earth stocks catapulted in 2025 after the Trump administration moved to secure the supply chains of critical minerals and reduce reliance on imports.

Rare earths are essential elements for several industries, including electronics, semiconductors, defense, aerospace, robotics, and renewables. The global supply, however, is dominated by China, with the U.S. importing nearly 80% of its rare-earth requirement in 2024.

In a move that stunned the market in July 2025, the U.S. Department of Defense, rebranded by President Trump as the Department of War (DoW), bought a 15% equity stake in MP Materials, becoming its largest shareholder.

MP Materials owns and operates the largest rare earth mine in the U.S., the Mountain Pass in California.

Under the public-private partnership, MP Materials will build a rare earth magnet manufacturing facility, called the 10X facility, with an estimated capacity of 10,000 metric tons. In return, the DOW has committed to purchase 100% of the magnets produced at the facility for 10 years and has established a floor price of $110 per kilogram for MP Materials for essential rare earth compounds.

The DoW also partnered with MP Materials to establish a joint venture in Saudi Arabia to develop a rare-earth refinery.

In another landmark deal of 2025, MP Materials announced a $500 billion partnership with tech giant Apple to produce rare earth magnets from recycled materials for use in Apple devices.

Is MP Materials stock a buy now?

While deals have flowed in and MP Materials stock price skyrocketed, the mining company has been spending heavily to expand its refining and magnet production capabilities.

2026 should be a significant year for MP Materials as it begins commissioning its heavy rare earth separation facility at Mountain Pass. This is a crucial step toward its planned production of 10,000 metric tons of magnets.

As MP Materials moves from mining ores to manufacturing magnets and becomes a U.S. rare earth powerhouse, its stock could deliver monster returns in the coming years.

Should you buy stock in MP Materials right now?

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Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends MP Materials. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.