MP Materials Corporation shares saw a significant increase in the stock market following reports of Apple’s plans to invest $500 million in the company. This news comes on the heels of a recent multibillion-dollar deal with the U.S. Department of Defense.
Apple and MP Materials Strategic Partnership
According to Fox Business, Apple’s new investment plan involves the purchase of U.S.-made rare earth magnets from MP Materials’ Texas facility. Additionally, the company will build a new factory in Fort Worth for magnet production and establish a recycling facility in Mountain Pass, California.
MP Materials Stock Growth
MP Materials shares surged 7.95% to $52.39 in premarket trading, building on the previous day's 7.56% gain. The stock has demonstrated significant volatility, with a 52-week range of $10.02 to $50.98. The company has a market cap of $7.931 billion.
Rare Earth Market Dynamics
The recent agreement with the U.S. Department of Defense includes a price floor for rare earth materials set nearly twice the current market level. This is geared toward spurring investments in domestic mines and processing plants, highlighting the growing importance of securing critical materials for national security and consumer electronics.
Apple's investment in MP Materials emphasizes the importance of securing supply chains for rare earth materials. This move is crucial for enhancing domestic production in the U.S. and could reshape the rare earth market landscape.
