MP Materials Stock Jumps 6% On $150M DOD Loan For Rare Earth Expansion, But Retail’s Worried About Valuation

MP Materials Corp (MP) shares rose nearly 6% before the bell on Monday after the company received a $150 million loan from the U.S. Department of Defense to add heavy rare earth separation capabilities to MP Materials' existing processing facility in Mountain Pass, California. 

On Stocktwits, retail sentiment surrounding the stock remained in the ‘neutral’ territory. The message volume on MP Materials was at ‘normal’ levels.

This loan is part of the Office of Strategic Capital’s (OSC) recent execution of its first direct loan to strengthen the U.S. industrial base and protect critical minerals supply chains. The funding for OSC's $150 million loan to MP Materials comes from the One Big Beautiful Bill Act, which President Trump signed into law on July 4, 2025, the Department of Defense said.

The bill provides OSC with $500 million of credit subsidy funding, creating up to $100 billion in available loan funds specifically for critical minerals production and related industries and projects. A user on Stocktwits views the loan as a positive, but noted that the company’s valuation is worrisome.

MP Materials’ stock has climbed over 350% so far this year and has soared nearly 570% in the last 12 months.

Another user on Stocktwits noted that the stock could hit over $80 on Monday.

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