MP Materials stock rose 4.1% following news that rare earth prices have exceeded the government subsidy threshold. Neodymium praseodymium oxide prices reached $123 per kilogram, surpassing the $110 per kilogram floor set by the U.S. Department of Defense in a 2023 agreement. This means MP Materials can now operate without government financial support. The price increase reflects strong demand for permanent magnets used in electric vehicles and defense systems, combined with restricted supply from China, which accounts for 70% of global mining production and 90% of refining capacity. Analysts note this price elevation may be temporary, with a correction expected by end of March. Sixteen brokerages cover MP Materials with a consensus "Buy" rating and an average 12-month price target of $78.91.
Read full analysisMP Materials stock rose 4.1% following news that rare earth prices have exceeded the government subsidy threshold. Neodymium praseodymium oxide prices reached $123 per kilogram, surpassing the $110 per kilogram floor set by the U.S. Department of Defense in a 2023 agreement. This means MP Materials can now operate without government financial support. The price increase reflects strong demand for permanent magnets used in electric vehicles and defense systems, combined with restricted supply from China, which accounts for 70% of global mining production and 90% of refining capacity. Analysts note this price elevation may be temporary, with a correction expected by end of March. Sixteen brokerages cover MP Materials with a consensus "Buy" rating and an average 12-month price target of $78.91.
MP Materials operates the only active rare earth mining and processing facility in the United States, at Mountain Pass, California, producing materials critical for electric vehicle motors, wind turbines, and defense systems. The company has become a centerpiece of U.S. efforts to reduce dependence on Chinese rare earth supply chains, recently securing a Department of Defense equity investment with a 10-year $110/kg price floor. The stock remains highly volatile as markets reprice the impact of a Supreme Court ruling against global tariffs, which challenged the protectionist trade framework behind MP's recent rally.