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MP Materials IPO: $10,000 Invested in 2020 Grows to $68,000 in Five Years

  //stocks-investing.news-articles.net/content/202 .. ested-in-2020-grows-to-68-000-in-five-years.html
  Published in Stocks and Investing on Monday, November 24th 2025 at 8:20 GMT by The Motley Fool

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If You’d Invested $10,000 in MP Materials Stock 5 Years Ago—What Would You Have Earned?

The recent Investor’s Fool piece “If You’d Invested $10,000 in MP Materials Stock 5 Years Ago” offers a concise but eye‑opening look at the rare‑earth mining sector and the remarkable run MP Materials (ticker: MP) has enjoyed since its initial public offering (IPO). In a nutshell, the article tells investors that a $10,000 investment in MP on November 24, 2020 would have grown to roughly $68,000 by November 24, 2025—an almost 680 % return over five years. Below, we unpack the story behind those numbers, the company’s strategic positioning, and the broader geopolitical forces that have amplified MP’s valuation.

1. MP Materials in a Nutshell

MP Materials is the owner and operator of the Mountain Pass Rare Earth Mine in California, the United‑States’ only large‑scale rare‑earth mine. The mine’s products—neodymium, praseodymium, and other lanthanides—are critical for high‑tech applications such as electric‑vehicle motors, wind‑turbine generators, and a growing number of consumer electronics. The company’s business model is tightly coupled to the global supply chain for rare earths, a chain that has long been dominated by China’s Jiangxi‑based producers.

In 2020, MP went public on the NASDAQ. The IPO priced the shares at $9.95 each, and the company had just begun to bring the Mountain Pass plant online. Since then, the company has ramped up production, moved to a more vertically‑integrated model (including downstream processing and refining), and secured high‑profile contracts with U.S. defense contractors and major automakers.

2. The Five‑Year Performance Breakdown

The article uses this table to illustrate how a modest $10,000 initial investment would have evolved:

1. 2020‑2023: During the first three years, MP’s stock surged as the mine’s output increased and the company announced a series of strategic agreements—most notably a long‑term supply deal with the U.S. Department of Defense for high‑grade rare earths.

2. 2023‑2025: The next two years were marked by a dramatic acceleration. The company secured a $250 million loan from the U.S. Treasury’s Infrastructure Bank to expand its processing plant, and a partnership with Tesla to supply neodymium for its next‑generation motors. These events pushed the price past $50, then to $68 by the end of 2025.

The article’s headline return calculation is therefore:

[ \frac{68.00}{9.95} \times \$10{,}000 \approx \$68{,}000 ]

3. Drivers of the Upside

The Investor’s Fool article links to several primary sources—one to MP Materials’ 2025 annual report and another to a Bloomberg story on the U.S. “Rare Earth Strategy.” Those links provide context on several catalysts:

a. Geopolitical Tensions

China’s dominance in the rare‑earth market has long been a point of concern for U.S. policymakers. The Biden administration’s National Defense Strategy explicitly lists rare‑earth security as a priority. As a result, MP has received both political and financial support, and the company’s “America‑first” positioning has become a key narrative for investors.

b. Supply Chain Resilience

The COVID‑19 pandemic exposed the fragility of global supply chains. MP’s 2024 Q4 report shows a 30 % increase in orders from the defense sector and a 15 % rise in commercial demand. These shifts are highlighted in the article’s discussion of the company’s risk profile, noting that while supply chain diversification is still limited, MP’s monopoly status in the U.S. gives it a natural buffer against Chinese over‑production or export restrictions.

c. Technological Momentum

Electric vehicle (EV) sales and green‑energy infrastructure continue to grow at record speed. Neodymium and praseodymium are the heart of the magnets used in EV motors and wind‑turbine generators. The article cites a McKinsey report that projects global demand for rare earths could grow by 3–5 % per year over the next decade—an increase that, if matched by MP’s supply capacity, could keep the company’s stock price on a long‑term upward trajectory.

4. Risks and Caveats

While the article’s headline is tempting, it also acknowledges that rare‑earth mining is not a “set‑and‑forget” investment. Key risks include:

• Commodity price volatility: Rare‑earth prices are highly susceptible to geopolitical shocks and shifts in global demand.
• Regulatory risk: Environmental permitting and compliance costs can increase unexpectedly, especially in California’s tight regulatory environment.
• Execution risk: The company’s plans to double its processing capacity hinge on securing additional capital and finishing regulatory approvals—steps that could delay production ramp‑ups.

The article recommends that investors consider these factors and perhaps combine MP exposure with broader ESG‑focused ETFs that track the transition‑economy theme.

5. Bottom Line

In a nutshell, the Investor’s Fool piece paints a vivid picture of a “success story” in the rare‑earth mining niche. A $10,000 stake in MP Materials on the day of its IPO would have been worth roughly $68,000 today—an impressive 680 % return. The company’s unique position in the U.S. supply chain, combined with rising demand for clean‑energy tech, underpins its growth trajectory. However, the story also warns of the inherent volatility of the commodity sector and the need for investors to remain vigilant about regulatory and operational risks.

For readers who want to dive deeper, the article’s embedded links point to MP’s latest annual report, a Bloomberg feature on U.S. rare‑earth policy, and a Financial Times piece on the global supply‑chain shift—materials that help contextualize the company’s valuation and the macro trends shaping its future.