Why MP Materials Stock Soared Today

But investors are sitting up and taking notice of a notable new investor -- Uncle Sam

The company announced a new deal with the United States Department of Defense, and investors are enthusiastically expressing their apval

ET, s of MP Materials have skyrocketed 50

Image source: Getty Images

Digging into the deets of the new deal In an effort to expedite the development of the domestic end-to-end rare earth magnet supply chain -- and shore up the nation's security by reducing its dependence on China and others for rare earths -- the Department of Defense has entered into a public-private partnership with MP Materials

The Department of Defense is viding "a multibillion-dollar package of investments and long-term commitments" that will assist the company in a second magnet manufacturing facility in the U

As a result of the agreement, the Department of Defense is poised to become the largest holder of MP Materials stock

Should potential investors Uncle Sam's lead

The new deal with the Department of Defense may very well turn out to be transformational for MP Materials, and the market's enthusiasm is understandable

With the stock's impressive rise since the start of the year, however, those looking to load up on the mining stock may want to wait for a pullback as the market's exuberance tapers off

Scott Levine has no position in any of the stocks mentioned

The Motley Fool recommends MP Materials

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