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Rare Earth Miner MP Materials Surges 276% on U.S. Government Support
10 Nov
Summary
- MP Materials upgraded to "buy" by Deutsche Bank
- Price target raised to $71, implying 21% upside
- U.S. government now MP Materials' largest shareholder
- Company benefits from $110/kg floor price for rare earths
In the past two years, rare earth miner MP Materials has seen remarkable growth, driven by strong support from the U.S. government. As of November 10th, 2025, the company's stock has surged an impressive 276% year-to-date.
This surge can be attributed to several key factors. First, the U.S. government has become MP Materials' largest shareholder, underscoring the strategic importance of the company's rare earth operations. Additionally, the government has provided a $110 per kilogram floor price for MP's rare earth production, helping to ensure a stable and profitable business environment.
Recognizing the company's potential, Deutsche Bank has upgraded MP Materials' shares to "buy" from "hold," and raised its price target to $71 per share, implying a potential upside of 21%. Analyst Corinne Blanchard cited the company's status as the only fully integrated rare earth producer in the West, as well as its strong execution in restarting its mine and expanding into magnet production.
Looking ahead, Blanchard remains confident in MP Materials' path forward, noting that the company could see further upside in the coming quarters as it continues to make progress on its refinery and explores potential mine plan optimizations. The rare earth sector's strategic importance to the U.S. government is expected to continue providing a supportive backdrop for the company's growth.
