After a 200%+ Surge in a Year, Still Room to Run? This U.S. Rare Earth Giant Plans a New Magnet Fact

Following its stratospheric stock price rally in 2025, U.S. rare earth materials producer $MP Materials Corp.(MP)$ has dropped another bombshell: the company plans to build a $1.25 billion rare earth magnet manufacturing campus in Northlake, Texas, further solidifying its core position in America’s rare earth supply chain. On the day of the announcement, MP Materials’ stock rose 2% to approximately $60 per share, pushing its market capitalization to $10.6 billion.

Named "10X," the new facility will be situated on a 120-acre site in Northlake, Texas—less than 10 miles from the company’s already operational Fort Worth magnet factory. MP Materials stated that the campus will "significantly expand" its existing manufacturing platform, encompassing the entire industrial chain from mining, smelting, alloying, and sintering to finished magnet production and closed-loop recycling. The new plant is expected to create over 1,500 direct jobs, and upon full commissioning, will increase the company’s annual production capacity of neodymium-iron-boron (NdFeB) rare earth magnets by approximately 10,000 metric tons—equivalent to the current annual volume of U.S. imports of such magnets from China.

Notably, the 10X project is the centerpiece of a public-private partnership between MP Materials and the U.S. Department of War (renamed from the Department of Defense in 2025). Under an agreement reached in July 2025, the Department of War not only acquired a 15% stake in MP Materials to become its largest shareholder but also committed to purchasing all magnets produced at the facility over the next decade at a floor price of $110 per kilogram. This rare arrangement of "government off-take + price protection" provides MP Materials with stable revenue visibility and significantly mitigates market risks. Additionally, the Department of War has formed a joint venture with MP Materials to build a rare earth refinery in Saudi Arabia, further expanding its global footprint.

Beyond defense contracts, MP Materials has also secured substantial commercial success. In 2025, the company inked a long-term cooperation agreement worth $500 billion with tech giant Apple to produce rare earth magnets using recycled materials for Apple devices. This partnership not only showcases MP Materials’ technological prowess in environmentally friendly recycling but also opens up vast opportunities in the consumer electronics market.

Financially, MP Materials has secured sufficient funding for the 10X project. In addition to a $150 million loan from the Department of War (for the development of the Mountain Pass mine), JPMorgan Chase and Goldman Sachs have committed $1 billion in financing support. State and local governments have also approved a package of tax breaks, grants, and exemptions totaling $200 million over a period of more than a decade. MP Materials expects to break ground soon, with production scheduled to commence in 2028.

In terms of stock performance, MP Materials was a "rare earth star" in 2025. According to data from S&P Global Market Intelligence, the stock soared by over 500% by mid-October 2025 before retracing somewhat, but still recorded a stunning annual gain of 223.8%. Entering 2026, the stock has continued its strong momentum, rising a further 13% to date. The core catalyst behind this rally is the policy dividend from the U.S. government’s push to de-risk critical mineral supply chains and reduce reliance on China. Currently, 80% of U.S. rare earth demand is met through imports, with China dominating global supply. As the only vertically integrated rare earth producer in the United States, MP Materials has naturally become a magnet for capital.

Looking ahead, MP Materials’ growth potential remains noteworthy. The company’s heavy rare earth separation facility at Mountain Pass, California, is expected to start production in 2026—a crucial step toward achieving its 10,000-metric-ton magnet annual production target. Once this facility is successfully commissioned, MP Materials will truly achieve full-chain autonomy from ore mining to magnet manufacturing, further cementing its status as "America’s rare earth champion." Furthermore, the 10-year procurement agreement with the Department of War and the long-term partnership with Apple provide the company with robust cash flow support, helping to hedge against the risk of rare earth price volatility.

However, investors should also be mindful of potential risks. Firstly, there is uncertainty surrounding the progress of project construction and production ramp-up; any delays could impact the 2028 commissioning target. Secondly, the global rare earth market is still dominated by China. If China adjusts its export or pricing policies, it could disrupt MP Materials’ profit expectations. Additionally, the company’s stock has already surged sharply, resulting in a relatively high valuation, which may lead to short-term volatility.

In summary, driven by policy, capital, and market demand, MP Materials is accelerating its strategy of localizing rare earth magnet production. Despite short-term pullback pressure following the stock’s sharp rally, its long-term investment value remains significant, supported by its unique strategic position, stable government orders, and upcoming new production capacity. Whether 2026 will be another "banner year" depends on the company’s ability to commission the heavy rare earth separation facility as scheduled and advance the 10X project smoothly. For investors bullish on U.S. manufacturing reshoring and critical mineral autonomy, MP Materials remains a core target worthy of attention.

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After a 200%+ Surge in a Year, Still Room to Run? This U.S. Rare Earth Giant Plans a New Magnet Fact

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