Should You Invest $100 in MP Materials Right Now?

• The rare earth metals specialist entered into several strategic partnerships in 2025.

• It is ramping up production as demand for magnets accelerates.

• While this is still a challenging business, an investment of $100 can be a great start.

• 10 stocks we like better than MP Materials›

MP material (NYSE: MP) is a mining company that operates one of the only rare earth metal mines in the heartland of the United States. As such, MP is at the forefront of national efforts to rebuild the domestic supply chain for rare earth metals.

Why such an effort, you might ask? MP The metals being mined and processed, such as neodymium (Nd) and praseodymium (Pr), form the basis of high-performance magnets. These magnets are everywhere from smartphones to advanced defense systems, and reducing their supply could put pressure on the U.S. economy.

Given its strategic position, MP’s share price has risen sharply this year, with an increase of approximately 250%. Shares have recently fallen about 40% from their recent highs. Is this stock worth investing $100 today? Let’s take a look.

2025 is a breakthrough year for MP Materials. In fact, the company has signed three major deals since the beginning of July:

• Department of Defense (DOD) invests $400 million

• $500 million strategic partnership apple

• 49% joint venture with the Ministry of National Defense and Saudi Arabian Mining Company to build a rare earth refinery in Saudi Arabia

The company has also set records for NdPR oxide production for three consecutive quarters, with production in the most recent quarter increasing significantly by 51% year-on-year.

All of this brings MP closer to the future as a fully integrated rare earths producer from mine to magnet. At the same time, MP does not mass-produce high-performance magnets. Although magnet production is expected to increase slightly in 2026, its manufacturing capacity cannot meet the quantity and quality required by the company. MP’s next phase faces some real challenges, given the capital intensity required to ramp up production.

Still, for a company at the center of U.S. rare earths ambitions, these challenges may just be the cost of growing into its role. For an aggressive investor, a $100 investment might be a fair opening move.

Before buying MP Materials stock, consider the following factors:

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