The Department of War Is Doubling Down on MP Materials. Should You Buy MP Stock Here?

MP -10.81% 1211.SR +3.63%

MP Materials (MP) has secured a transformative three-way joint venture with the U.S. Department of War and Saudi Arabian mining company, Maaden, to develop a major rare earth refinery in Saudi Arabia.

The agreement expands Western access to critical materials essential for defense systems and clean energy technologies and builds upon the LA-headquartered firm’s landmark deal with the Pentagon in July 2025.

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MP Materials stock extended gains following the announcement today but remains down more than 35% versus its year-to-date high in mid-October.

Why the Joint Venture Is Bullish for MP Materials Stock

MP shares rallied on Nov. 19 because the aforementioned deal deepens the company’s geopolitical relevance and supply chain integration and reinforces its role as a major U.S. supplier in a market dominated by China.

Together with the Pentagon deal in July that offered a guaranteed price floor of $110 per kilogram of neodymium-praseodymium oxide over the next decade, the joint venture improves MP’s growth prospects and margin potential.

Over time, it may translate to investor confidence in the firm’s global footprint, potentially driving its stock price to new all-time highs.

Note that MP Materials is challenging its 100-day moving average (MA) at the $65 level following today’s surge. A break above it could accelerate bullish momentum heading into 2026.

Goldman Sachs Sees Upside in MP Shares to $77

Goldman Sachs’ senior analyst Brian Lee also recommends buying MP Materials shares following the Department of War-Maaden deal on Wednesday morning.

Lee maintained his “Buy” rating and $77 price target on MP in a research note on Nov. 19, citing its dominant role in rare earth production and its strategic move toward vertical integration.

“MP’s expansion into refining and magnet production, accelerated by a partnership with US govt., will strategically position MP as a key supply chain component,” he told clients.

These developments, including the Pentagon deal, he believes, will improve the company’s margin and accelerate its revenue and EBITDA growth over time.

What’s the Consensus Rating on MP Materials?

Other Wall Street analysts agree with Lee’s constructive view on MP stock.

The consensus rating on MP Materials shares currently sits at “Strong Buy” with price targets going as high as $112, indicating potential upside of another 80% from here.

This article was generated with the support of AI and reviewed by an editor. On the date of publication, the editor did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com