3 Reasons MP Materials Stock Is a Buy in 2026

MP Materials (NYSE: MP) hit an important inflection point in 2025, as it built out its rare-earth metals business. It is now a vertically integrated business, with both a rare-earth metals mine and processing assets. For more aggressive investors, there are three big reasons to consider buying MP Materials in 2026 as it executes on its long-term business plan.

1. MP Materials operates in the U.S.A.

Motley Fool research shows that China is the dominant global source for rare-earth metals. That's a problem given that China has proven more than willing to use access to its rare-earth metals as a bargaining chip with other countries. Rare-earth metals are used in everything from electronics to missile defense systems. They are vital materials, and reliable access to rare-earth metals is an economic and geopolitical necessity.

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MP Materials operates in the United States. That geographic location makes it a strong partner for domestic companies and the U.S. government, which is providing financial assistance to the company. But it may also become a preferred provider for U.S. allies looking for a reliable source of rare-earth metals. The opportunity to be a key supplier to Western nations makes MP Materials an attractive stock.

2. Rare-earth metals are going to become more important

The second big reason to buy MP Materials in 2026 is long-term in nature. There is already strong demand for rare-earth metals. However, the world is increasingly digital. That means that demand for rare-earth metals is highly likely to rise over time.

Buying MP Materials now lets you get in early as the company and its market grow. Notably, the company is already working on a new rare-earth magnet processing facility in Texas to capitalize on the growth opportunity ahead.

3. MP Materials is finally getting all the pieces together

The final reason to like MP Materials in 2026 is that it now has both its rare-earth metals mine and its rare-earth metals processing assets up and running. In the fourth quarter of 2025, it generated adjusted earnings of $0.09 per share. There's still more spending to be done as the company builds its business out, but it is clearly moving in the right direction from a financial perspective. If 2026 is also an earnings inflection point, it could be a very good year for the business and the stock.

Investors should think long term

The problem with MP Materials is that it is hard to place a valuation on the stock, given its still early stage of development. And the stock has roughly doubled in value over the past year. Conservative investors probably won't be interested. But if you are a growth investor, buying in 2026 could get you in at the beginning of what increasingly looks like an attractive long-term growth story.

Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool recommends MP Materials. The Motley Fool has a disclosure policy.