Should You Invest $1,000 in MP Materials Right Now?

• MP Materials is simply a uncommon world miner specializing successful the accumulation of high-performance magnets.

• The institution has partnered with the Department of Defense and Apple.

• 10 stocks we similar amended than MP Materials ›

Right now, successful your telephone oregon laptop, a high-performance magnet is doing indispensable work. It enables your speakers to person electrical signals into dependable (and vice versa), to align charging coils properly, and adjacent marque that small vibration erstwhile your telephone buzzes with a text.

These magnets are made from almighty elements, specified arsenic neodymium, iron, and boron. Without them, your instrumentality would beryllium weaker and little efficient. And without a U.S. mining institution similar MP Materials (NYSE: MP), the root of these magnets would astir apt travel from overseas soil.

MP Materials owns and operates the Mountain Pass excavation successful California, 1 of the fewer scalable uncommon world mines successful the U.S., from which it extracts the metals needed to nutrient high-performance metals. It's besides becoming much vertically integrated, with a magnet mill successful Fort Worth, Texas, and different (the 10X Facility) connected its way.

In 2025, MP got a large valuation boost aft announcing a concern with the Department of Defense (DOD). The DOD invested $400 cardinal successful MP, and the woody besides included a 10-year terms level of $110 per kilogram for NdPr, positive a warrant that 100% of the magnets produced astatine the 10X Facility volition person a purchaser for the adjacent 10 years.

MP besides struck a multiyear $500 cardinal woody with Apple (NASDAQ: AAPL). Under the agreement, MP volition proviso Apple with 100% recycled uncommon world magnets, with Apple prepaying $200 million.

On the heels of these announcements, MP banal has soared. Over the past 12 months, the banal is up implicit 230%. If you had invested $1,000 successful MP a twelvemonth ago, your presumption would beryllium worthy astir $3,500 today. That's a bigger summation than immoderate of the "Magnificent Seven" stocks implicit the aforesaid period.

Still, execution risks remain, and MP's valuation is already moving hot. The institution inactive needs to physique retired its manufacturing arm, which volition apt unit its bottommost line. A $1,000 concern successful the institution astatine this constituent should beryllium taken by assertive investors only.

Before you bargain banal successful MP Materials, see this:

The Motley Fool Stock Advisor expert squad conscionable identified what they judge are the 10 champion stocks for investors to bargain now… and MP Materials wasn’t 1 of them. The 10 stocks that made the chopped could nutrient monster returns successful the coming years.