Key Points
MP Materials has a huge competitive edge in the U.S. rare earth industry.
The U.S. government and tech giants like Apple are backing MP Materials.
The miner is about to hit a major milestone that could ignite a fresh bull run.
Forget the tech boom. Forget Nvidia. A little-know stock has absolutely crushed the S&P 500 in 2025, and it comes from the ultra-boring and oft-overlooked materials sector.
Shares of MP Materials (NYSE: MP) are up 300% in 2025 as of this writing, and that's after the stock's sharp recent drop from its 52-week high of $100.25 per share it touched on Oct. 14. At its peak, MP Materials stock was up a jaw-dropping 532% in 2025.
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It has been a game-changing year for MP Materials, with the Pentagon acquiring a majority stake in the rare earth mining company through a $400 million investment, and tech giant Apple (NASDAQ: AAPL) sealing a multiyear $500 million partnership to buy recycled rare earth magnets from MP Materials for hundreds of millions of its devices like iPhones.
There's a reason why everyone's suddenly paying attention to MP Materials.
Image source: Getty Images.
Big breakthroughs, huge potential
Rare earths are vital for electronics, electric vehicles, semiconductors, drones, and more, but 77% of the rare earths consumed in the U.S. came from China in 2024.
President Donald Trump wants to change that and is making bold moves to break America's dependency on China. MP Materials could play a crucial role in that as it owns Mountain Pass, one of the richest rare earth mines in the world, and is the largest rare earths producer in the U.S.
Most importantly, MP Materials already produces rare earth oxides and metals and is targeting commercial magnet production by the end of 2025.
As part of its deal with the U.S. Department of Defense, MP Materials will also build a second magnet manufacturing facility called the 10X Facility. 100% of the magnets produced at the facility will be purchased by defense and commercial customers for 10 years under the deal.
MP Materials may appear pricey with a market cap exceeding $11 billion, but its undeniable growth potential has made it one of the hottest stocks of 2025 and one worth keeping an eye on.
Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Nvidia. The Motley Fool recommends MP Materials. The Motley Fool has a disclosure policy.