Should You Invest $100 in MP Materials Right Now?
Key Points
The rare earth metals specialist landed several strategic partnerships in 2025.
It is ramping up production at a moment when magnet demands are accelerating.
While it's still a challenging business, a $100 investment could be a good starter move.
- 10 stocks we like better than MP Materials ›
MP Materials (NYSE: MP) is a mining company that operates one of the only rare-earth metal mines in the American Heartland. As such, MP is at the forefront of a national effort to rebuild a domestic supply chain of rare-earth metals.
Why this effort, you might ask? Well, the metals that MP is mining and processing -- such as neodymium (Nd) and praseodymium (Pr) -- form the basis for high-performance magnets. These magnets are found in everything from smartphones to advanced defense systems, and diminishing their supply could strain the U.S. economy.
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Given its strategic position, MP stock has surged on the year, with a gain of about 250%. Shares have recently dropped by about 40% from recent highs. Is the stock worth a $100 investment today? Let's take a look.
MP is scaling its mine at a critical moment
2025 was a breakout year for MP Materials. Indeed, since early July, the company has inked three major deals:
- A $400 million investment from the Department of Defense (DOD)
- A $500 million strategic partnership with Apple
- A 49% joint-venture stake with the DOD and Saudi Arabian Mining Company to build a rare-earth refinery in Saudi Arabia
The company has also posted three consecutive quarters of record NdPR oxide production, with its most recent quarterly output representing a whopping 51% increase year over year.
Image source: MP Materials.
All of this moves MP closer to the future in which it operates as a fully integrated rare-earth producer, from mine to magnet. At the same time, MP doesn't produce high-performance magnets at a large scale. While it expects its magnet production to ramp up slightly in 2026, it doesn't have the manufacturing capacity to deliver magnets at the volume and quality that companies need. Toss in the capital intensity of ramping up production, and MP's next phase carries some real challenges.
Still, for a company that sits at the center of America's rare-earth ambitions, those challenges may just be the cost of growing into its role. For aggressive investors, then, a $100 investment could be a fair opening move.
Should you invest $1,000 in MP Materials right now?
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Steven Porrello has positions in MP Materials. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends MP Materials. The Motley Fool has a disclosure policy.
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