MP Stock Surges in Premarket After Apple’s Investment Plans Reported

MP Materials Corporation (NYSE: MP) shares jumped significantly in premarket trading on Tuesday, July 15, 2025, following reports that Apple Inc. (NASDAQ: AAPL) is expected to announce a $500 million investment commitment to the rare earths mining company.

The news comes just one week after MP Materials secured a multibillion-dollar deal with the U.S. Department of Defense to boost domestic rare earth magnet production and reduce America’s reliance on Chinese suppliers. This strategic partnership highlights the growing importance of securing critical materials supply chains for both national security and consumer electronics manufacturing.

Apple’s Strategic Investment in Critical Materials Sparks Stock Gains for MP

According to Fox Business, Apple’s $500 million commitment to MP Materials includes plans for the tech giant to purchase U.S.-made rare earth magnets from MP’s Texas facility.

The agreement also involves building another factory in Fort Worth, Texas for magnet production and establishing a new recycling facility in Mountain Pass, California. MP Materials, which operates the only U.S. rare earths mine, already produces mined and processed rare earths and expects to begin commercial magnet production at its Texas facility by the end of 2025.

This investment represents Apple’s efforts to secure critical materials needed for its products, including iPhones, iPads, and other devices that rely on rare earth magnets. The partnership comes as tech companies face increasing pressure to diversify their supply chains away from China, which has historically dominated the rare earths market.

Apple’s commitment aligns with broader U.S. government initiatives to strengthen domestic production of materials essential for both consumer electronics and national defense applications.

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MP Materials Shares Surge in Premarket Trading

MP Materials shares surged 7.95% to $52.39 in premarket trading at 7:37 AM EDT on Tuesday, building on the previous day’s 7.56% gain that closed at $48.52. The stock has shown significant volatility with a 52-week range of $10.02 to $50.98, reflecting both the challenges and opportunities in the rare earths sector. With a market cap of $7.931 billion and high beta of 2.14, MP Materials represents a volatile but potentially rewarding investment in critical materials infrastructure.

The recent momentum follows MP Materials’ multibillion-dollar agreement with the U.S. Department of Defense announced last week, which includes a price floor for rare earths set at nearly twice the current market level. This price guarantee is designed to spur investment in domestic mines and processing plants, addressing long-standing concerns about China’s dominance in the rare earths market.

Meanwhile, Apple stock has faced headwinds, trading at $208.62 with a year-to-date decline of 16.49%, underperforming the S&P 500’s 6.58% gain as investors remain cautious about the tech sector’s near-term prospects.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.