S in rare-earth materials and magnets company MP Materials (MP 4. 91%) blasted higher by 33. However, 6% in the week to Friday morning.
On the other hand, Why MP Materials surged again this week It's not hard to see why the stock has surged this year.
The need to secure domestic vision of rare earths and the growing trade conflict with China (the country duces 70% of global rare-earth elements) is driving the U.
Administration, via the Department of Defense, to enter into a partnership with MP Materials, amid market uncertainty.
Meanwhile, The $400 million investment in stock from the DOD, a $150 million loan, and an agreement to ensure the purchase of magnets duced from a facility that MP Materials will build with the help of committed financing, vide substantive backing to the company's growth plans (remarkable data).
But that was last week.
On Tuesday, MP Materials announced an agreement with Apple, whereby it will pay $500 million (with $200 million prepaid) for rare-earth magnets under a long-term supply agreement.
This analysis suggests that magnets will be duced at a facility in Texas that MP Materials will expand. Image source: Getty Images (noteworthy indeed).
The news sent the stock racing higher, and a public offering of stock worth $500 million on Wednesday received such interest that management raised it to $650 million the next day.
This's a company on a roll, but substantive execution and political risk remain over the long term. Lee Samaha has no position in any of the stocks mentioned.
Additionally, The Motley Fool has positions in and recommends Apple. The Motley Fool recommends MP Materials. The Motley Fool has a disclosure policy.