Although “neodymium-praseodymium (NdPr)” may not be a term you use everyday, you most likely depend on its uses everyday.<\/p>\n
That’s because NdPr is critical for making the super-strong magnets in electric vehicles (EVs), wind turbines, smartphones, robotics, defense systems, and more.<\/p>\n
For years the U.S. has depended on foreign sources for rare metals like NdPr. But mining company<\/a> MP Materials (NYSE: MP) is aiming to change that.<\/p>\n As the owner and operator of the only rare-earth metal mine and processing site in the U.S., the Mountain Pass mine in California, MP Materials is setting itself up to be the country’s go-to for certain rare earth metals.<\/p>\n The stock has a lot of momentum — up almost 350% on the year — but can it go parabolic in three years?<\/p>\n MP Materials makes money by selling rare-earth concentrates and oxides, like NdPr oxide, and by producing permanent magnets for a myriad of markets, including electric vehicles.<\/p>\n In July 2025, MP got two huge votes of confidence. One was a multibillion-dollar package from the Department of Defense (DoD), which invested $400 million in MP’s stock and agreed to buy NdPr oxide at a price floor of $110 per kilogram over the next decade.<\/p>\n The second was a $500 million partnership with Apple (NASDAQ: AAPL). A first-of-its-kind deal, MP will supply Apple with magnets for “hundreds of millions” of devices starting in 2027.<\/p>\n Both of these could set MP up for a strong three years to come. But let’s not overlook the risks. MP isn’t profitable, and it doesn’t have the manufacturing capacity to meet high demand for super-strong magnets.<\/p>\n At its current price, MP trades at almost 83 times forward earnings<\/a>, a rich valuation that looks more like tech than mining.<\/p>\n With a multiple like that, MP will need something big — like the completion of its 10X facility — to go parabolic by 2028. It’s possible, but only invest if you can stomach losses, as volatility should be expected.<\/p>\n Before you buy stock in MP Materials, consider this:<\/p>\n The Motley Fool Stock Advisor analyst team just identified what they believe are the\u00a010 best stocks<\/a> for investors to buy now\u2026 and MP Materials wasn\u2019t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.<\/p>\n Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you\u2019d have $649,280!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you\u2019d have $1,084,802!*<\/p>\n Now, it\u2019s worth noting\u00a0Stock Advisor\u2019s total average return is 1,058% \u2014 a market-crushing outperformance compared to 189% for the S&P 500. Don\u2019t miss out on the latest top 10 list, available when you join Stock Advisor.<\/p>\n See the 10 stocks \u00bb<\/a><\/p>\n *Stock Advisor returns as of September 22, 2025<\/p>\n Steven Porrello<\/a> has positions in MP Materials. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends MP Materials. The Motley Fool has a disclosure policy<\/a>.<\/p>\n Image source: Getty Images. <\/p>\n
<\/a> MP Free Cash Flow (Quarterly)<\/a> data by YCharts<\/a> <\/p>\n