Wild & Wonderful Trip For MP

Good Thursday Morning, MPTraders!  July 10, 2025-- Pre-Market Update: MP (Materials Corp)!

My persistent bullish technical outlook in anticipation of MP's upside breakout from a two-year base-accumulation period and pattern has achieved most of its upside potential this AM, with a major announcement about the company's partnership with the Department of Defense (see explanation below)... 

What a wild and wonderful trip it has been!  See my charts below the explanation... 

MP is surging in pre-market trading today due to a major announcement of a multibillion-dollar public-private partnership with the U.S. Department of Defense (DoD). The deal aims to accelerate U.S. independence in rare earth magnet production, a critical area for national security amid ongoing trade tensions with China. Here's a breakdown of the key developments and their implications:Key Details from the Announcement

• DoD Investment and Ownership: The DoD will invest $400 million in convertible preferred stock, positioning it to become MP's largest shareholder (potentially up to 15% ownership upon conversion).  This includes an additional $150 million loan from the DoD.
• New "10X" Magnet Facility: MP will construct a massive new manufacturing plant to expand U.S. magnet production capacity to over 10,000 metric tons annually by 2028, significantly reducing reliance on foreign (primarily Chinese) supplies. 
• Long-Term Agreements: A 10-year NdPr (neodymium-praseodymium oxide, a key rare earth material) price floor set at $110/kg, plus guaranteed offtake agreements for 100% of the new facility's magnet output by defense and commercial customers. 
• Additional Financing: MP has secured $1 billion in credit from JPMorgan and Goldman Sachs to support the expansion. 
• Strategic Context: This builds on MP's role as America's only fully integrated rare earth producer, operating the Mountain Pass mine in California and magnet facilities in Texas. The partnership is seen as a direct response to China's dominance (over 90% of global rare earth processing and magnet production), especially with recent export restrictions from China amid U.S. tariffs. 

The news broke early this morning (July 10, 2025), with MP's official press release and a webcast highlighting the "transformational" nature of the deal for U.S. supply chain security in sectors like EVs, robotics, defense, and renewable energy.  CEO James Litinsky described it as "decisive action to accelerate American supply chain independence."

(courtesy of Grok)