MP Materials Soars 50.38% After Defense Department Stake Buy

- MP Materials' stock surged 50.38% to $45.16 on July 11, 2025. - The leap came after the U.S. Department of Defense announced a multi-billion-dollar investment to bolster rare earth magnet production. Shares of MP Materials soared 50.38% on July 11, 2025, following a U.S. Department of Defense (DoD) announcement of a landmark investment to reshape the nation's rare earth magnet supply chain. The stock reached an intraday peak of $48.115, representing a 60.2% increase, before settling at $45.16 by market close. On July 10, 2025, the DoD detailed the commitment, which involves a $400 million purchase of MP Materials' convertible preferred stock and a warrant to acquire additional common stock. The initial conversion and exercise price is set at $30.03 per share. If fully converted, this deal would grant the DoD approximately 15% ownership of MP Materials, making it the company’s largest single shareholder. The parties expected the transaction to close on July 11. MP Materials plans to use the proceeds to expand its rare earth magnet production and refining infrastructure, allocating a substantial portion of the funding to build a second domestic magnet manufacturing plant, dubbed the '10X Facility.' The company plans to commission the facility in 2028. Once operational, the facility aims to elevate U.S. magnet production capacity to approximately 10,000 metric tons annually. On July 10, 2025, James Litinsky, CEO of MP Materials, said in a statement that the partnership is a 'decisive action by the Trump administration to accelerate American supply chain independence,' noting the critical role the collaboration will play in securing a domestic source of rare earth magnets essential for U.S. industries. On July 11, 2025, CoinMarketCap data showed MP Materials (MP) trading at $45.16 as of 12:00 UTC. This price represented a 50.38% increase over the previous 24 hours.