MP Materials Corp. (MP) Stock Analysis

MP Materials’ principal competitive advantage is its position as the only fully integrated rare earth producer in North America, spanning mining, refining, and magnet manufacturing. This vertical integration enables greater control over quality, costs, and supply chain security—critical in a market where China accounts for over 80% of global rare earth processing. In contrast, Lynas Rare Earths, MP’s closest Western rival, relies on third-party processing for heavy rare earths and lacks downstream magnet capacity.

MP’s Mountain Pass mine is among the world’s richest rare earth deposits, supporting scale and cost efficiency. In 2025, MP produced 13,254 metric tons of rare earth oxides in Q3 alone, with neodymium-praseodymium (NdPr) output up 51% year-over-year. The company’s new Texas magnetics facility is expected to reach 10,000 metric tons of annual magnet capacity, a scale unmatched outside China.

Strategic partnerships further reinforce MP’s edge. The U.S. Department of Defense has invested $400 million and secured a 10-year price floor and offtake agreement, while Apple and GM have signed long-term supply deals. These relationships provide revenue visibility and reduce exposure to commodity price swings.

Risks include execution on large-scale projects and potential margin pressure from Chinese competition. However, MP’s liquidity, government backing, and integrated model position it as the Western leader in rare earths.