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BMO Upgrades MP Materials Despite Lower Target, Citing Strategic Momentum

The call underscores government guarantees that aim to de-risk MP’s shift from mining to rare-earth magnet production.

Overview

  • Shares rose about 2.5% in premarket trading to $56.65 after the upgrade, though they are down roughly 22% over the past month and remain up more than 250% year to date.
  • The Pentagon became MP’s largest shareholder in July with a 15% stake via a $400 million investment, alongside a $150 million loan to build its 10X magnet facility.
  • Terms with the Defense Department include a 10-year commitment to buy all magnets produced at the 10X plant and, according to analyst reporting, a price floor for materials.
  • MP and Saudi Arabian Mining Company (Ma'aden) have a joint venture to add rare-earth refining capacity in Saudi Arabia, broadening processing outside China.
  • MP targets initial magnet output by the end of 2025, with a reported Apple supply agreement and broad Wall Street support, including an average analyst price target near $79.