Key Highlights Shares of MP Materials surged 9.3% on Friday, reaching $60.16 Seven critical mineral processing projects received U.S. Department of Energy backing, sparking the rally The comp
Shares of MP Materials (MP) rocketed more than 9% higher during Friday’s trading session, closing at $60.16, as government support for critical minerals and impressive quarterly results ignited investor enthusiasm for the rare earth sector.
The Materials sector dominated market performance for the day, posting a 2.09% gain. By comparison, the S&P 500 advanced 0.42% while the Nasdaq Composite climbed 0.31%.
Friday’s surge was triggered by an announcement from the U.S. Department of Energy regarding the selection of seven initiatives aimed at boosting domestic critical mineral processing capabilities, along with battery production and recycling infrastructure. The news resonated strongly with investors tracking the critical minerals landscape.
This federal funding initiative supports President Trump’s “Unleashing American Energy” executive directive, which has maintained domestic mineral supply chain security as a priority throughout 2026.
MP runs the Mountain Pass complex in California, representing North America’s sole large-scale rare earth extraction and processing operation. This unique positioning provides significant strategic advantages as policymakers work to diminish reliance on Chinese-dominated supply networks.
The emerging “Physical AI” investment thesis is also driving renewed interest in MP’s domestically-produced rare earth magnets. With accelerating demand for artificial intelligence infrastructure and robotic systems, the raw materials essential for these technologies are capturing greater investor focus.
MP’s second-quarter 2026 financial performance provided fundamental support for the stock’s advance. The company reported an 89% year-over-year revenue surge, while neodymium-praseodymium production increased by 51%. These substantial gains offered tangible evidence of operational progress.
Beyond raw material production, the company is advancing its vertical integration strategy through magnet manufacturing initiatives and winning defense-related contracts, which diversifies its revenue streams.
However, MP continues to operate with negative cash flow. Substantial capital expenditures for new processing capabilities mean profitability remains elusive despite higher production volumes. This financial dynamic warrants ongoing monitoring.
From a technical standpoint, MP shares broke above both the 100-day and 200-day simple moving averages on Friday. The stock also maintained positions above its 20-day and 50-day moving averages.
The MACD indicator traded above its signal line with a positive histogram reading, suggesting building upward momentum.
The shares experienced a “death cross” pattern in July when the 50-day moving average fell below the 200-day level. Since that July bottom, the stock has recovered considerably. Its 52-week trading range spans from $37.81 to $100.25.
Key resistance appears near the $61 level, while support is established around $53.50.
Regarding analyst coverage, JPMorgan reaffirmed its Overweight stance with a $60 price objective on July 29. Needham continued its Buy recommendation with a $73 target on July 22. Barclays sustained its Overweight rating with a $65 target on July 16. The Street consensus stands at Buy with an average price target of $71.79.
Investors can also gain exposure to MP through the VanEck Rare Earth and Strategic Metals ETF (REMX), where it represents 6.27% of holdings, and the Sprott Critical Materials ETF (SETM) at a 3.19% allocation.
MP Materials traded at $60.16, up 9.3%, at the time of publication on Friday.
The post MP Materials (MP) Stock Rockets 9% Higher on Critical Minerals Boost appeared first on Blockonomi.
