MP Materials Corp. (MP) Stock Analysis

MP Materials’ primary competitive advantage is its position as the only fully integrated rare earth producer of scale in the United States. The company owns and operates the Mountain Pass mine, the sole active and scaled rare earth mining and processing facility in North America. In 2024, MP produced approximately 1,300 metric tons of neodymium-praseodymium (NdPr) oxide, a critical input for permanent magnets used in electric vehicles, defense, and electronics.

Unlike most Western peers—such as Lynas Rare Earths (Australia/Texas) and NioCorp (Nebraska)—MP controls the entire value chain from mining through to magnet manufacturing. This vertical integration is reinforced by recent investments: a new magnet facility in Texas, a $500 million supply agreement with Apple, and a multibillion-dollar public-private partnership with the U.S. Department of Defense, which now holds a 15% equity stake and has committed to long-term price floors and offtake agreements.

MP’s U.S. base and government backing insulate it from geopolitical risks and Chinese export controls, a vulnerability for most rivals. The company’s scale, technical expertise, and first-mover status in domestic magnet production create high barriers to entry. However, MP remains exposed to rare earth price volatility and is still ramping downstream operations, while Chinese firms retain cost and scale advantages globally.