MP Materials, Apple, and Pentagon: A Rare Earth Powerhouse

MP Materials is capitalizing on the increasing demand for rare earth elements, essential for technologies like electric vehicles and missile guidance systems. Its Mountain Pass mine is the only operating large-scale rare-earth mine in the U.S., giving it a unique advantage.

Apple Partnership: A $500 million agreement with Apple focuses on creating a circular supply chain by recycling rare earth magnets from end-of-life products. Apple's $200 million prepayment is funding the expansion of MP's Texas facility.

Pentagon Support: The Department of Defense has invested $400 million in MP Materials, becoming a major shareholder. This investment aims to secure a domestic supply of rare earth magnets for military applications. A floor price of $110/kilogram for NdPr oxide ensures stable cash flow.

Financial Performance: While MP Materials reported revenue of $224 million in 2025 (up 10%), it had a net loss of $85.8 million. However, production is ramping up, with a 101% increase in NdPr oxide production in 2025.

Valuation Concerns: Some analysts believe MP Materials is overvalued, trading at a premium compared to its peers. Concerns exist around meeting magnet and heavy rare earth element (HREE) volume plans and managing execution costs.

It is the only fully integrated U.S. rare earth producer with a mine, processing facilities, and magnet manufacturing.

To reduce dependence on China for rare earth magnets, which are critical for defense and technology.

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