Materials corporation announces $500 million stock sale following its climb to all-time record value
**MP Materials Secures Major Funding and Partnerships for Rare Earth Expansion**
MP Materials (NYSE:MP) has announced a series of transformative partnerships and funding that will significantly boost its role in the U.S. rare earth magnet supply chain. The company's shares surged 20% on Tuesday, reaching an all-time intraday high of $62.87.
The U.S. Department of Defense (DoD) has agreed to invest $400 million in MP Materials, becoming the company's largest shareholder. This investment comes in the form of preferred stock, convertible to common equity, and warrants for additional equity, giving the DoD an effective 15% ownership stake. The DoD has also committed to a 10-year offtake agreement for all magnet production from a new facility, the "10X Facility," which is expected to begin commissioning in 2028.
The 10X Facility, capable of producing 10,000 metric tons of magnets annually, will be a significant addition to MP Materials' operations. The company already operates a 1,000 metric ton Texas plant, which is scheduled to come online in 2026. These facilities will make MP Materials a national leader in rare earth magnet production, essential for defense, electric vehicles, wind turbines, and consumer electronics.
In a separate development, MP Materials has signed a $500 million, long-term supply agreement with Apple to produce 100% recycled rare earth magnets in the United States for Apple devices. This partnership involves both recycling lines at Mountain Pass, California, and new manufacturing capacity at the Texas facility, which will be upgraded to meet Apple’s specifications.
Both the Apple partnership and the DoD funding will enable rapid expansion of MP Materials' capacity. The company also plans to use the proceeds from a public offering of common stock for $500 million for the acceleration and expansion of its operations, strategic growth opportunities, and general corporate purposes.
The Apple deal and the DoD partnership also include commitments to workforce development and technical innovation. Advanced manufacturing lines and training programs will be established to build a new pool of U.S. magnet manufacturing expertise, supporting domestic job creation and U.S. technological leadership in this critical sector.
By 2028, MP Materials’ expanded capacity could cover a significant portion of U.S. demand for rare earth magnets, reducing reliance on imports, particularly from China. The price floor and offtake agreements with the DoD provide financial stability, even in volatile global markets.
The focus on recycled rare earth magnets for Apple and the broader expansion of U.S. manufacturing aligns with global trends toward sustainability and supply chain resilience. MP Materials is positioned to become a "national champion" in rare earths, with a scalable, durable economic platform supported by both commercial and government partners.
| Development | Partners Involved | Impact | Timeline | |-----------------------------------|-----------------------|------------------------------------------------------------------------|-------------------| | 10X Magnet Facility Construction | U.S. DoD, MP Materials| Adds 10,000 metric tons/year capacity, reduces foreign dependency | Commissioning 2028| | Recycled Magnet Supply Agreement | Apple, MP Materials | Enables 100% recycled magnets for Apple, supports circular economy | Ongoing | | Government Equity Investment | U.S. DoD, MP Materials| $400M preferred stock, 15% effective stake, price floor, offtake deal | Immediate | | Workforce & Innovation Programs | Apple, MP Materials | Trains workforce, advances magnet and recycling technology | Ongoing |
- MP Materials' business is set to grow significantly with the financial investment from the U.S. Department of Defense, as they become a key player in the rare earth magnet supply chain for both defense and commercial sectors.
- With the long-term supply agreement with Apple and the 10X Facility construction, MP Materials is poised for investing in business expansion, focusing on recycled rare earth magnet production, workforce development, and technical innovation, aligning with the global trends of sustainability and supply chain resilience.
