Highlights

• MP Materials has experienced a 112% stock surge in July.
• The surge is backed by significant investment from the Department of Defense and strategic partnerships.
• The company is positioned as the nucleus of U.S. rare earth independence strategy.
• MP Materials has received $400 million in equity and $1 billion in construction loans from the DoD.
• Despite Jim Cramer's criticism, MP Materials represents a critical play in American industrial policy for critical minerals and rare earth production.

There’s an old meme on Wall Street: if Jim Cramer hates a stock, you might want to back up the truck. This week, the CNBC host poured cold water (opens in a new tab) on MP Materials (opens in a new tab) (NYSE: MP)—calling it “not as big as everyone’s trying to make it out to be.” That’s a curious take, considering the Department of Defense has essentially slapped a “strategic asset” sticker on Mountain Pass and written a billion-dollar love letter in capital commitments.

We get it—Cramer still bears scars from Molycorp’s spectacular implosion, which he invoked like a ghost story from the 2010s. But unlike Moly, MP has actual magnet production in the pipeline, a locked-in floor price agreement with the DoD, and Apple as a strategic buyer. When Uncle Sam signs on as a 15% partner and bankrolls your refining facility, you’re no longer just a “strip in California”—you’re America’s Plan A (and B) for rare earth independence. This is serious business and the dawn of American industrial policy for critical minerals (including rare earth elements).

Let’s break it down:

• MP shares are up 112% in July, riding the wave of Pentagon support, Apple’s magnet partnership, and bipartisan concern over China’s dominance in rare earths.
• DoD investment: $400 million equity + $1 billion in construction loans.
• Policy tailwinds: 50% tariffs on Chinese copper? That’s just the appetizer. Rare earths are on the main course, and MP is the only domestic mine currently plating.

Cramer’s skepticism (“we need more than that part of California”) might’ve made sense ten years ago. Today, it's like saying we need more than one Fort Knox. Sure, more domestic production is needed—but MP is the nucleus of the U.S. rare earth strategy.

Here’s the real story: Cramer’s take might be good contrarian fuel. If you’d shorted everything he liked this year and bought what he dismissed, you might be sipping piña coladas in your magnet-powered Tesla by now.

So here’s the Rare Earth Exchanges™ takeaway:

Betting against MP is like betting against American reindustrialization. And betting with Jim? Well… ask the folks who shorted NVIDIA in 2019.

Disclaimer: Not financial advice. But we are patriotic.