Shares of MP Materials came under significant selling pressure on Friday, closing down approximately 5.5% at $55.34. This retreat appears counterintuitive, arriving just ahead of the company’s upcoming earnings release and against a backdrop of substantially improved fundamental conditions for rare earth elements. The current market action suggests investors are prioritizing operational execution risks over the recent commodity price surge.
Investor Caution Ahead of Earnings Report
Market observers attributed Friday’s decline to position-squaring ahead of the financial results. The stock opened at $57.70, dropped to an intraday low of $55.04, and struggled to recover by the session’s close. All attention is now focused on Thursday, February 26, 2026, when MP Materials is scheduled to report its fourth-quarter and full-year 2025 results after the market closes.
As North America’s sole fully integrated producer of rare earths, the company holds a pivotal position in the U.S. supply chain. Analysts will be scrutinizing the upcoming report to assess whether MP Materials possesses the operational strength to swiftly convert the tight supply environment and higher commodity prices into expanded profit margins.
Should investors sell immediately? Or is it worth buying MP Materials?
NdPr Prices Hit Multi-Year High
In a contrasting trend, the price of Neodymium-Praseodymium (NdPr) oxide—a critical component for permanent magnets used in electric vehicles and defense technology—has climbed to around $123 per kilogram. This represents its highest level since July 2022.
The current pricing is notably above the key $110 per kilogram threshold. This level carries strategic importance for MP Materials: under a prior agreement with the U.S. Department of Defense, the government would have provided subsidies if the market price remained below that point. The fact that prices are now trading organically above this floor indicates a healthier earnings environment, reducing the company’s reliance on state-backed price supports.
The divergence between the robust commodity market and the stock’s performance highlights a market currently more concerned with near-term corporate delivery than with supportive macro fundamentals. The upcoming earnings release will be the critical test for investor confidence.
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