MP Materials Trending On Pentagon Partnership — Stock Spikes After Hours

MP Materials Corp MP witnessed a surge of 2.59% in after-hours trading on Thursday, after closing the regular session at $45.23, marking a gain of 50.63%.

What Happened: The U.S. government has decided to invest in MP Materials, making it the company’s largest shareholder. This development has caused the company’s stock to soar by over 50.62% in regular hours trading. With a 2.59% increase, the stock climbed to $46.40 in after-hours trading.

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The investment is part of a major deal between MP Materials and the U.S. government, aimed at reducing the country’s reliance on China for rare earths. The deal is expected to have an impact on the global rare earths market.

MP Materials is the only rare earths producer in the U.S., and the investment is seen as a strategic move to strengthen the country’s position in the rare earths industry.

Why It Matters: The U.S. government’s decision to invest in MP Materials comes as part of a series of events that have significantly impacted the rare earths market.

Earlier in July, MP Materials entered into a public-private partnership with the U.S. Department of Defense to accelerate the build-out of a U.S. rare earth magnet supply chain. This move was a response to a critical vulnerability in the U.S. supply chain, caused by China’s decision to restrict the export of rare earths and related magnets.

MP Materials’ stock surged over 40% on the day of the partnership announcement, and the company has since been on an upward trajectory.

These developments have put the spotlight on the rare earths industry and its strategic importance in global trade and security.

Price Action: According to Benzinga Pro data, MP stock closed at 50.62% higher at $45.23 per share.

Benzinga Edge Stock Rankings shows MP Materials Corp has Momentum in the 95th percentile. Here is how the stock fares on other parameters.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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