Highlights

• MP Materials raised $650 million in follow-on equity.
• Secured landmark partnerships with Apple and the U.S. Department of Defense.
• Company's stock has surged 543% in the past year.
• Current market cap of $11.95 billion.
• Significant growth potential in rare earth manufacturing.
• Strategic moves aim to:
  • Diversify revenue.
  • Reduce pricing volatility.
  • Establish a domestic rare earth supply chain for tech and defense sectors.

According to an entry via Simply Wall St (opens in a new tab), “MP Materials (NYSE: MP) Secured its US$650 Million Follow-On Equity Offering,”

MP Materials has announced a US$650 million follow-on equity offering alongside two major deals: a long-term partnership with Apple to supply rare earth magnets made from recycled materials, and a collaboration with the U.S. Department of Defense to build out a domestic rare earth supply chain. These moves come as the company enjoys a historic run in its share price — up 183% in the past quarter and over 543% in the past year — far outpacing both the S&P 500 and the Metals & Mining sector.  The current stock price is $71.05.

The Apple partnership is aimed at diversifying MP’s revenue streams and stabilizing margins by reducing exposure to volatile NdPr pricing. The DoD collaboration aligns with U.S. industrial policy to secure non-Chinese supply for defense and EV applications. The new capital could accelerate downstream expansion, but the raise also poses equity dilution risks at a time when MP’s valuation already sits above the consensus analyst target (US$67.51 vs. US$60.40).

Market Snapshot — MP Materials (as of Aug. 7, 2025, Yahoo Finance)

MP’s market cap now stands at $11.95B, up from $3.99B in Q1 2025, reflecting explosive investor confidence. The company trades at a trailing P/E of 20.97 and a forward P/E of 24.10, with a Price/Sales ratio of 51.31 and Price/Book of 11.54 — valuation multiples that suggest high growth expectations are already priced in.

On the financial side, MP reported $215.98 in trailing twelve-month revenue with a profit margin of -48.41% and an operating margin of -56.60%, highlighting ongoing losses despite rapid top-line growth. The balance sheet shows $759.16M in cash against $933.01M in debt (Debt/Equity of 90.05%) and a strong current ratio of 4.12. Shares remain heavily shorted, with 19.11% of the float sold short.

Key Investor Questions

• How much of the $650M will be allocated to downstream magnet manufacturing versus upstream mining?
• Are the Apple and DoD agreements long enough in terms and volume to meaningfully reduce earnings volatility?
• Can MP sustain its current valuation multiples given persistent operating losses?
• Will equity dilution offset the potential earnings boost from accelerated expansion?

Rare Earth Exchanges (REEx) reminds readers that we have referred to MP Materials as the American rare earth element treasure trove.