MP Materials' shares surged 51% on July 10 after securing a multi-billion-dollar commitment from the Department of Defense (DOD) and another 20% on July 15 following a $500 million partnership with Apple.
Apple (AAPL), the third largest company in the world by Market Cap, has agreed to acquire rare earth magnets from MP Materials (MP). The stock price of this mining company has risen over 20% as of the time of writing this article. On Tuesday, the iPhone manufacturer announced a $0.5 billion contract to collaborate with MP Materials to establish a commercial-scale rare earth magnet recycling facility. Including today's rise, MP stock has increased nearly 290% compared to the year-to-date low recorded in late May.
Apple made this announcement as part of a broad initiative to invest up to $500 billion in domestic production, which is significant as it solidifies MP Materials' role in the company's multi-year supply chain, one of the most valuable companies in the world. Investors are welcoming AAPL's acquisition as it signifies long-term revenue prospects, strategic legitimacy, and national importance for rare earth materials companies.
Essentially, this positions MP as the foundation for U.S. rare earth independence, reducing dependence on China and aligning with Department of Defense-supported initiatives. Magnet shipments are expected to support hundreds of millions of Apple devices from 2027, and the company, listed on the New York Stock Exchange, has gained scale, reliability, and investor confidence, all of which could lead to further increases in MP stock price later this year.
I'm not an APPL fan and don't own APPL stocks so owning this stock doesn't make sense for me.
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Hmm