Shares of MP Materials surged nearly 14% in Thursday’s session, marking one of the most significant single-day gains for the U.S.-based rare earths producer this year.
The rally comes on the heels of high-profile announcements from former President Donald Trump, who has placed rare earth minerals at the center of his latest trade and national security agenda.
In a week dominated by geopolitical maneuvering, the Trump administration revealed it is considering invoking Cold War-era powers to strengthen America’s rare earths supply chain. Officials are weighing the use of the Defense Production Act to unlock critical funding, loans, and support for domestic rare earth mining, processing, and downstream technologies. This move is designed to reduce U.S. dependence on Chinese rare earths, which are essential for industries ranging from electric vehicles to national defense.
The urgency of these measures intensified after China suspended exports of key rare earth elements and magnets in April, disrupting global supply chains and sending shockwaves through sectors reliant on these critical materials. The Trump administration’s response aims to not only restore but also fortify the U.S. position in the rare earths market, with MP Materials poised as a primary beneficiary.
Adding to the momentum, President Trump announced a breakthrough in trade negotiations with China, securing an agreement for the immediate resumption of rare earths and magnet supplies to the U.S. This diplomatic development has been widely interpreted as a temporary reprieve for American manufacturers, but industry analysts warn that long-term security will depend on establishing alternative supply chains and expanding domestic production capacity.
Recent upgrades from major financial institutions have further fueled investor optimism. Last week, Morgan Stanley raised its rating on MP Materials to ‘Overweight’ and boosted its price target, citing the company’s strategic role in the evolving U.S. rare earths landscape.
As Washington intensifies efforts to secure critical mineral resources, MP Materials stands at the forefront of a sector undergoing rapid transformation. The company’s robust performance and pivotal position in U.S. supply chain strategy have made its stock a focal point for investors seeking exposure to the future of American manufacturing and national security.
