Should You Invest $100 in MP Materials Right Now?

• The uncommon world metals specializer landed respective strategical partnerships successful 2025.

• It is ramping up accumulation astatine a infinitesimal erstwhile magnet demands are accelerating.

• While it's inactive a challenging business, a $100 concern could beryllium a bully starter move.

• 10 stocks we similar amended than MP Materials ›

MP Materials (NYSE: MP) is simply a mining institution that operates 1 of the lone rare-earth metallic mines successful the American Heartland. As such, MP is astatine the forefront of a nationalist effort to rebuild a home proviso concatenation of rare-earth metals.

Why this effort, you mightiness ask? Well, the metals that MP is mining and processing -- specified arsenic neodymium (Nd) and praseodymium (Pr) -- signifier the ground for high-performance magnets. These magnets are recovered successful everything from smartphones to precocious defence systems, and diminishing their proviso could strain the U.S. economy.

Given its strategical position, MP banal has surged connected the year, with a summation of astir 250%. Shares person precocious dropped by astir 40% from caller highs. Is the banal worthy a $100 concern today? Let's instrumentality a look.

2025 was a breakout twelvemonth for MP Materials. Indeed, since aboriginal July, the institution has inked 3 large deals:

• A $400 cardinal concern from the Department of Defense (DOD)

• A $500 cardinal strategical concern with Apple

• A 49% joint-venture involvement with the DOD and Saudi Arabian Mining Company to physique a rare-earth refinery successful Saudi Arabia

The institution has besides posted 3 consecutive quarters of grounds NdPR oxide production, with its astir caller quarterly output representing a whopping 51% summation twelvemonth implicit year.

All of this moves MP person to the aboriginal successful which it operates arsenic a afloat integrated rare-earth producer, from excavation to magnet. At the aforesaid time, MP doesn't nutrient high-performance magnets astatine a ample scale. While it expects its magnet accumulation to ramp up somewhat successful 2026, it doesn't person the manufacturing capableness to present magnets astatine the measurement and prime that companies need. Toss successful the superior strength of ramping up production, and MP's adjacent signifier carries immoderate existent challenges.

Still, for a institution that sits astatine the halfway of America's rare-earth ambitions, those challenges whitethorn conscionable beryllium the outgo of increasing into its role. For assertive investors, then, a $100 concern could beryllium a just opening move.

Before you bargain banal successful MP Materials, see this:

The Motley Fool Stock Advisor expert squad conscionable identified what they judge are the 10 champion stocks for investors to bargain now… and MP Materials wasn’t 1 of them. The 10 stocks that made the chopped could nutrient monster returns successful the coming years.