MP Materials Shares Rally 50% on DoD Stake, Fall Back to $64.23
MP•MP Materials Corp became the Department of Defense’s largest shareholder on July 10, 2025, sending shares up 50% and lifting the stock to a $100.25 peak on Oct. 14. Shares have since retreated to $64.23 and dropped 8.8% after the government took a 10% stake in a sector peer.
1. DoD Equity Stake Drives Initial Surge
On July 10, 2025, MP Materials Corp partnered with the Department of Defense, making the agency its largest shareholder. Shares jumped 50% that day, reflecting investor enthusiasm for government-backed rare earth supply security.
2. Peak Price and Subsequent Pullback
The stock climbed to a $100.25 intraday high on Oct. 14, 2025, as momentum continued from the DoD deal. Since then, profit-taking and sector rotation have pressured shares lower.
3. Impact of Peer Government Stake
On Jan. 26, 2026, the U.S. government took a 10% equity stake in USA Rare Earth, a sector peer, and MP Materials shares fell 8.8% in tandem. This episode highlighted sensitivity of MP’s stock to broad rare earth policy moves.
4. Current Valuation and Sector Context
MP Materials now trades at $64.23, well below its 2025 peak, as investors weigh government involvement benefits against execution risks. Ongoing policy shifts and supply chain initiatives will likely drive near-term volatility in rare earth stocks.
