Here's Why MP Materials Stock Rocketed Higher This Week

By Lee Samaha | January 09, 2026, 8:13 AM

Key Points

  • Heavy rare-earth minerals from Venezuela could potentially help meet the demand for magnet production in the U.S.

  • The stock carries embedded risk, and there is no guarantee that any of the speculation will come to fruition.

Shares in MP Materials (NYSE: MP) rose by 11.1% in the week to Friday morning. The move comes as the market prices in the possibility of an improved trading relationship with Venezuela, a country rich in resources.

MP Materials and Venezuela

The country is better known for its oil deposits, but it's also believed to have 300000 tonnes of rare-earth minerals in the Orinoco Mining Arc. In addition, Venezuela's deposits contain monazite minerals, which in turn contain highly prized heavy rare-earth elements, including Dysprosium (used in electric vehicles and wind turbines) and Terbium (used in defense munitions and advanced sensors).

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These minerals could potentially be highly valuable to MP Materials, as its Mountain Pass deposit in California is scarce in them and is known as a light rare-earth deposit, producing. light rare-earth such as neodymium and praseodymium.

What it means to investors

While it's interesting to speculate about MP Materials, a company with substantial U.S. government investment, utilizing heavy rare-earth elements from Venezuela to feed its magnet-producing facilities, it's a long way from happening or even being a possibility. It's a long way from happening anytime soon.

A hand holding minerals.

Image source: Getty Images.

That said, the reality is that securing non-China-sourced materials and magnets is clearly a priority for the current administration, and MP Materials offers a pathway to help ensure a domestic source of such materials, even if the company faces execution, funding, and political risks ahead.

Should you buy stock in MP Materials right now?

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Lee Samaha has no position in any of the stocks mentioned. The Motley Fool recommends MP Materials. The Motley Fool has a disclosure policy.

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