The War Ministry doubles its resources in parliamentary equipment. Should you buy MP stock here?
MP Materials (MP) has entered into a transformative three-way joint venture with the US Department of War and Saudi mining company Maaden, to develop a major rare earth refinery in Saudi Arabia.
The deal expands Western access to critical materials essential to defense systems and clean energy technologies and builds on the Los Angeles-based company’s historic deal with the Pentagon in July 2025.
MP Materials stock extended its gains after today’s announcement, but remains down more than 35% from its yearly high in mid-October.
MP shares rebounded on November 19 because the aforementioned deal deepens the company’s geopolitical relevance and supply chain integration and strengthens its role as a major U.S. supplier in a market dominated by China.
Along with the agreement reached with the Pentagon in July, which provided a guaranteed floor price 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, this could translate into investor confidence in the company’s global footprint, which could drive 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 rise. A break above could accelerate the bullish momentum by 2026.
Goldman Sachs senior analyst Brian Lee also recommends buying MP Materials stock following the War Department’s deal with Maaden Wednesday morning.
Lee maintained his “Buy” rating and $77 price target on MP in a Nov. 19 research note, 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 the U.S. government, will strategically position MP as a key component of the supply chain,” 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.
