Government Bolsters Rare Earth Supply Chain with $1.6B Investment in USA Rare Earth
MP Materials shares surged 1.8% to close at $69.58 on Friday, extending a 217% rally over the past year. The TRUMP administration is set to announce a $1.6 billion critical minerals package, including a 10% stake acquisition in USA Rare Earth, signaling heightened government focus on domestic supply chain security.
Analysts maintain a 'Moderate Buy' rating with a $78.91 average price target, while discounted cash Flow analysis suggests 41.8% upside potential to an intrinsic value of $117.45 per share. The rare earth sector gains momentum as MP Materials prepares to report earnings on February 19, 2026, with profitability expected in fiscal 2026.