U.S. Rare Earths Producer Gains on Strategic Reserve Announcement

MP Materials US5533681012

Shares of MP Materials advanced on Monday following an announcement by former President Donald Trump regarding a new strategic reserve for critical minerals. The development injected optimism into the beleaguered rare earths sector, which had just navigated a week of significant political volatility.

Investor attention is now turning to the company's upcoming fourth-quarter 2025 financial results, scheduled for release on February 26, 2026. A conference call is set for 11:00 PM Central European Time. This report will provide a crucial update on the financial health of the California-based miner, which operates the Mountain Pass mine and is expanding its magnet manufacturing capabilities in Fort Worth, Texas.

With a market valuation of approximately $10.5 billion, MP Materials stands as a central player in U.S. efforts to establish a domestic supply chain for rare earth elements. These materials are vital for electric vehicles, defense systems, and advanced technology.

"Project Vault" Unveiled

The recent share price increase is directly linked to the February 2, 2026, unveiling of "Project Vault." This initiative is a strategic stockpiling program designed to lessen American reliance on China for essential minerals. A notable feature of the plan is its inclusion of private sector participation.

The program's structure combines $1.67 billion in private capital with a substantial $10 billion credit facility from the U.S. Export-Import Bank. In after-hours trading, MP Materials shares responded positively to the news, climbing more than 2 percent.

Recovering from a Volatile Period

The gains mark a recovery from a difficult prior week. By the close of trading on Friday, the company's stock had declined 10.7 percent over the preceding five sessions. This sell-off was triggered by a Reuters report suggesting potential revisions to federal price guarantee mechanisms, highlighting the ongoing political risks inherent in public-private partnerships within the commodity sector.

Key Contractual and Competitive Details:

• In July 2025, MP Materials finalized a contract with the U.S. Department of Defense.
• The agreement establishes a binding 10-year price floor of $110 per kilogram for its neodymium-praseodymium (NdPr) products, which the company has characterized as a "binding agreement."
• Competitor USA Rare Earth, while securing $277 million in grants and $1.3 billion in potential financing under the CHIPS Act, did not obtain similar price protection within its arrangements.

The coming weeks are expected to provide greater clarity on how the administration's mineral policy will be implemented and what the specific implications will be for domestic producers like MP Materials.