MP Materials Secures 10-Year $110/kg Military Purchase and $500M Apple Magnet Deal
On July 10, 2025, the U.S. military committed to purchase MP Materials’ rare earths at a $110/kg price floor over 10 years and invested $400 million to become its largest shareholder. Five days later, MP secured a $500 million Apple deal for American-made rare earth magnets from recycled materials.
1. Government Partnerships Drive Future Growth
In July 2025, MP Materials secured two landmark agreements that underpin its long-term expansion. On July 10, the U.S. Department of Defense committed to purchase neodymium-praseodymium products at a price floor of 110 USD per kilogram under a 10-year offtake agreement, while underwriting the construction of a magnet manufacturing plant in Texas. Five days later, the company announced a 500 million USD, multi-year supply deal with a major technology OEM for American-made rare-earth magnets produced from recycled materials. To cement its support, the U.S. government purchased 400 million USD of MP Materials equity, becoming the largest shareholder in the Mountain Pass operation.
2. Production Scale and Environmental Compliance
Based in Las Vegas, MP Materials operates the Mountain Pass mine—America’s sole integrated rare-earth site capable of producing critical oxides like NdPr at commercial scale. After years of struggling to compete with low-cost imports, the company upgraded its processing facilities to meet stringent U.S. environmental standards, reducing tailings discharge by over 40% and implementing closed-loop water recycling systems. With the forthcoming Texas magnet plant, MP will control the full value chain from ore extraction to finished magnet assemblies, positioning it uniquely to satisfy both defense and commercial demand without the ecological footprint of overseas producers.
3. Financial Performance and Long-Term Outlook
Over the past five years, MP Materials has grown revenue at a compound annual rate of 15%, despite a slight revenue decline in the most recent quarter due to elevated input costs. The stock rallied more than 27% year-to-date after the 2025 bull run, reflecting investor confidence in its government-backed contracts and strategic importance. While the company remains unprofitable, the guaranteed price floor and offtake volume commitments create a clear path to breakeven once the Texas facility reaches full capacity in 2027. Analysts forecast that full integration of the magnet plant could double annual revenue by 2028, marking MP as a core holding for investors seeking exposure to the domestic critical-minerals supply chain.