MP Materials Corp. (MP): A Bull Case Theory

We came across a bullish thesis on MP Materials Corp. (MP) on r/wallstreetbets Subreddit by One-Hovercraft-1935. In this article, we will summarize the bulls’ thesis on MP. MP Materials Corp. (MP)’s share was trading at $48.52 as of 14^th July. MP’s trailing and forward P/E were 20.97 and 24.1, respectively according to Yahoo Finance.

MP Materials (NYSE: MP), the only U.S.-based producer of rare earth elements (REEs), is rapidly transforming into a critical pillar of America’s clean energy and defense supply chain. Operating the historic Mountain Pass mine in California, once the world’s top REE source, MP boasts ore with exceptionally high Total Rare Earth Oxide (TREO) content, providing a competitive edge in quality and scale. The company has completed its Fort Worth-based “Independence Facility,” the first integrated U.S. plant to produce REE metals, alloys, and NdFeB magnets.

In early 2025, MP began commercial production of NdPr metal and trial production of automotive-grade magnets, which are crucial for EVs, wind turbines, military tech, and electronics. Commercial magnet output is slated for late 2025 and is already backed by partnerships with GM for use in models like the Hummer EV and Cadillac LYRIQ.

MP’s strategy aligns with a broader national security push to reduce reliance on China, which controls 90% of REE processing and dominates global magnet production. The company’s vertical integration—from mine to finished magnet—is unmatched in the U.S. and directly supported by over $439 million in DoD funding since 2020.

Reinforcing this trajectory, MP recently secured $1 billion from JPMorgan and Goldman Sachs for a second “10x” magnet facility, and the DoD purchased a 15% equity stake, becoming the largest shareholder while also providing $150 million in loan support.

Though the stock surged to $45.23, its long-term value remains compelling. With robust growth in NdPr revenue and unmatched strategic importance, MP Materials offers a rare opportunity in reshoring critical U.S. industrial capacity.

Previously we covered a bullish thesis on MP Materials Corp. by Steve_Zissouu in April 2025, which highlighted the company’s growing self-sufficiency, government-aligned strategy, and pivotal role in decoupling from Chinese rare earth dependency. The company’s stock price has appreciated approximately 109% since our coverage. This is because the thesis largely played out—MP’s shift to domestic processing and support from the Biden administration reinforced investor sentiment. One-Hovercraft-1935 shares a similar view but emphasizes MP’s forward integration into REE magnets, DoD equity investment, and the launch of its Fort Worth facility as catalysts for long-term value.

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Disclosure: None.