MP Materials to Raise $500 Million After Landmark Apple Deal

Stock Offering Follows Strategic Wins with Apple and the Pentagon

MP Materials announced on Wednesday that it plans to raise $500 million through a public offering of its common stock, just one day after securing a major supply agreement with tech giant Apple. The move marks a significant moment for the U.S.-based rare earths producer as it accelerates growth amid rising demand and strategic partnerships.

Following the announcement, MP Materials’ shares fell 5.8% in extended trading. Despite the dip, the stock has surged an impressive 275% year-to-date, pushing the company’s market valuation to $9.57 billion. 

The recently inked supply agreement with Apple—valued at $500 million—represents a rare and strategic investment by a technology company into its raw material supply chain. The partnership is aimed at reducing Apple’s reliance on foreign sources for rare earth magnets, key components in many of its consumer electronics. Reuters

Rare Earths Strategy Gains Momentum Amid Global Tensions

In addition to the Apple deal, MP Materials also secured a multibillion-dollar agreement with the U.S. Department of Defense last week. The Pentagon partnership underscores Washington’s push to rebuild a domestic rare earths supply chain and reduce dependence on China, which restricted exports of these critical minerals earlier this year in response to tariff disputes. Benziga

Though the U.S.-China trade conflict has cooled since a June agreement, the underlying supply chain vulnerabilities have fueled continued interest in non-Chinese sources like MP Materials. Notably, the Pentagon deal did not require the issuance of public shares.

Offering Details and Use of Proceeds

The Las Vegas-based company said it intends to use the net proceeds from the offering to fund future growth opportunities and for general corporate purposes. Under the offering terms, MP will also grant underwriters a 30-day option to purchase up to an additional 15% of the shares issued. Investing.com Canada

Leading the underwriting are J.P. Morgan and Goldman Sachs, with Morgan Stanley also acting as a book-running manager in the transaction.

With major supply deals in hand and fresh capital on the way, MP Materials is poised to strengthen its foothold in the rare earths sector—supporting both national interests and next-generation technologies.

 

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