MP Materials Expands Rare-Earth Production Capacity

Wall Street analysts see upside potential in this mining stock despite recent volatility.

Apr. 16, 2026 at 8:40am

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An extreme close-up of the gears, valves, and other components of heavy industrial machinery used in rare-earth mining and processing, conveying the complex and powerful nature of this industry.MP Materials' expanded rare-earth production capabilities aim to meet growing global demand for critical minerals.Fort Worth Today

MP Materials, a rare-earth mining company, is expanding its production capabilities by building new facilities and vertically integrating its operations. The company's move into magnet production is expected to significantly boost profit margins, while a deal with the U.S. Department of Defense provides stable cash flow. Additionally, MP Materials is securing partnerships with top tech companies like Apple, positioning it as a key supplier of rare-earth materials.

Why it matters

Rare-earth elements are critical components in a wide range of high-tech products, from electric vehicles to smartphones. As global demand for these materials continues to grow, companies like MP Materials that can reliably supply them are becoming increasingly valuable. The company's strategic moves to expand production and lock in long-term contracts suggest it is well-positioned to capitalize on this trend.

The details

MP Materials is expanding its operations beyond just mining rare-earth minerals. The company's new Independence facility in Fort Worth, Texas, began producing neodymium-iron-boron (NdFeB) magnets in late 2025, with plans to increase capacity from 1,000 tons to 3,000 tons. MP is also building a new 10X facility that will add 7,000 tons of magnet production capacity. This vertical integration into magnet manufacturing is expected to significantly boost the company's profit margins, as magnets are much more profitable than raw concentrate.

  • MP Materials' Independence facility began producing magnets in Q4 2025.
  • The company plans to expand the Independence facility's magnet production capacity to 3,000 tons.
  • MP is building a new 10X facility that will add 7,000 tons of magnet production capacity.

The players

MP Materials

A rare-earth mining company that is expanding its production capabilities and vertically integrating into magnet manufacturing.

U.S. Department of Defense

Signed a 10-year deal with MP Materials that establishes a price floor and guarantees the purchase of 100% of magnets produced at the company's 10X facility.

Apple

Signed a $500 million long-term deal with MP Materials to supply magnets produced at the Independence facility, using recycled rare-earth feedstock.

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What they’re saying

“MP Materials' vertical integration will significantly boost margins. Magnets are much more profitable than raw concentrate. Many investors could underestimate the margin expansion that MP Materials' Independence and planned 10X facilities will enable.”

— Keith Speights, Author

“This agreement translates into stable, predictable cash flow for MP Materials. That's something investors should love.”

— Keith Speights, Author

What’s next

MP Materials plans to continue expanding its magnet production capacity, with the goal of becoming a dominant supplier of rare-earth materials and components to the global tech industry.

The takeaway

MP Materials' strategic moves to vertically integrate, secure long-term contracts, and expand production capacity position the company as a key player in the growing rare-earth materials market. Investors see significant upside potential in the stock despite recent volatility.