MP Materials Stock Soars on Strategic U.S.-Saudi Partnership

Shares of MP Materials have surged to approximately $63.55, extending a powerful rally that has tripled the company's market value this year. This investor enthusiasm follows confirmation of a landmark joint venture involving the U.S. government and Saudi Arabia, fundamentally strengthening the firm's role in the global supply chain for critical minerals.

Despite the bullish stock performance, MP Materials reported a net loss of $41.8 million for the third quarter of 2025—a 64% increase compared to the same period last year. Market participants, however, are looking beyond these current losses, focusing instead on long-term revenue potential from new refinery capabilities and a $400 million preferred stock purchase by the U.S. government.

The equity has gained roughly 300% since the beginning of the year, highlighting a significant divergence between quarterly financial results and share price appreciation. This discrepancy indicates that investors are pricing in substantial future growth alongside a strategic premium tied to national security interests.

Geopolitical Shift Drives Valuation

The primary catalyst for recent momentum is a newly signed agreement between MP Materials, the U.S. Department of Defense, and the Saudi Arabian Mining Company (Ma'aden). This three-way partnership aims to construct a major rare earths refinery in Saudi Arabia.

Should investors sell immediately? Or is it worth buying MP Materials?

Under the arrangement, MP Materials and the U.S. government will collectively hold a 49% stake, with Ma'aden controlling the remaining 51%. Crucially, the Defense Department is providing full, non-recourse financing for the U.S. portion—significantly mitigating risk for MP Materials shareholders.

This strategic move diversifies the rare earths supply chain away from Chinese dominance. The market responded aggressively to this expansion, driving the company's market capitalization to nearly $11 billion.

Key Developments at a Glance

• Current Share Price: Around $63.55 following an 8.6% daily gain
• New Alliance: Joint venture established with Ma'aden and the U.S. Department of Defense
• Ownership Structure: MP Materials/DoD hold 49%, Ma'aden controls 51%
• Annual Performance: Over 300% increase year-to-date
• Financial Reality: Q3 net loss expanded to $41.8 million

Reshaping Global Supply Chains

MP Materials serves as a key indicator of Western efforts to achieve independence in critical minerals. The integration of its Mountain Pass mine with new processing facilities in the Middle East creates a more resilient value chain.

Although analysts project profitability won't materialize until 2026, the substantial government backing from both the United States and Saudi Arabia provides a safety net few competitors can match. With shares trading near 52-week highs, the market is betting heavily that these geopolitical alliances will translate into sustainable cash flow generation.