New York, Jan 25, 2026, 05:08 EST — Market closed
- Shares of MP Materials closed Friday 1.8% higher, at $69.58.
- On Monday, a fresh U.S. rare-earths investment package will be announced, putting the spotlight back on the sector.
- Investors are eyeing the upcoming policy spillover and await MP’s next quarterly update.
MP Materials shares start the week under scrutiny after reports emerged that the Trump administration is acquiring a 10% stake in USA Rare Earth, part of a $1.6 billion effort to boost U.S. critical minerals supply. The deal is expected to be announced Monday, accompanied by an investor conference call, according to two sources close to the situation, Reuters reported. (Reuters)
Why it matters now: rare earths consist of 17 minerals essential for magnets that drive everything from missiles to electric vehicle motors. Policy shifts can shake up the sector quickly, given tight supply chains and the fact that most processing happens outside the United States.
For MP, which has positioned itself as a U.S. supply chain anchor, another Washington-backed deal could have mixed effects. It might boost sentiment within the group — or prompt investors to scrutinize who secures funding and who faces stiff competition for the same clients.
Shares of MP climbed 1.77% Friday, ending the day at $69.58. Intraday, the stock fluctuated between $66.25 and $70.45.
The Financial Times revealed that the USA Rare Earth deal features a 10% equity stake and financing support, with the government also slated to get shares and warrants priced at $17.17. The plan includes senior secured loans aimed at funding the construction of a mine and magnet factory. (Financial Times)
MP has already gained from federal support. In July, the U.S. Defense Department struck a public-private deal to become MP’s largest shareholder and set a “price floor” — guaranteeing a minimum price for crucial rare earths, Reuters reported. Ryan Castilloux, managing director at Adamas Intelligence, called it “a game changer for the ex-China industry.” (Reuters)
MP executives are shifting focus to manufacturing, not just mining. “We will have a significant magnet capacity online” within three years, said Matt Sloustcher, MP’s executive VP for corporate affairs and chief communications officer, in December. He highlighted magnet production plans involving General Motors and other clients. (S&P Global)
Traders will closely dissect Monday’s data this week, looking for clues on how quickly U.S. government capital is flowing into the sector and if more deals are on the horizon. Nasdaq pins MP’s next earnings date as Feb. 19, but flags that this is algorithm-generated, not officially confirmed by the company. (Nasdaq)
Still, the risks are obvious. Rivals tapping deeper funding sources might undercut MP’s “only U.S. player” advantage. On top of that, rare-earth prices and project schedules are unpredictable. Any hold-ups in processing or magnet production could strain cash flow and force rapid changes in outlook.
The next major event is Monday’s USA Rare Earth investor call, expected to clarify terms and timelines. Any early signs of follow-on federal agreements might also emerge. After that, attention will shift to MP’s upcoming quarterly report for updates on processing and magnet production.
