MP Materials Shares Decline on Shift in U.S. Policy Support

Shares of MP Materials came under significant selling pressure this week following a key policy announcement from Washington. The catalyst was news that the Trump administration will no longer offer new price guarantees for domestic critical minerals projects. This broader withdrawal of government support programs sent the rare earths producer's stock into a decline.

On January 29, the company announced it will release its fourth-quarter 2025 financial results after the market closes on February 26, 2026. A management conference call is scheduled to follow at 5 p.m. Eastern Time. These figures are expected to provide details on the operational progress at its Mountain Pass facility in California and the construction of its Independence magnet factory. Investors will likely focus on production volumes and cost structures, especially as competition in the sector intensifies.

Key Data Points:
* MP Materials stock fell 10.7% for the week (as of Friday morning, January 30, 2026).
* The existing Department of Defense (DoD) agreement with MP Materials remains unaffected.
* Q4 2025 earnings are scheduled for release on February 26, 2026.

Government Reverses Course on Price Supports

According to a Reuters report, the administration has abandoned plans to provide minimum price guarantees for U.S. minerals projects. Industry executives were informed at a meeting in Washington that their projects must be economically viable without federal price supports. Officials cited a lack of congressional funding and the complexity of setting appropriate market prices as reasons for the decision.

Should investors sell immediately? Or is it worth buying MP Materials?

This policy shift occurred just days after USA Rare Earth secured a substantial support package, which included $277 million in direct funding, a $1.3 billion loan under the CHIPS Act, and $1.5 billion in private investment. Notably, that deal also did not include any price floor provisions.

Existing DoD Contract Remains Intact

MP Materials' own agreement with the U.S. Department of Defense, established in July 2025, is not impacted by this new policy direction. The contract includes a ten-year price guarantee of $110 per kilogram for its neodymium-praseodymium (NdPr) output, coupled with a $400 million preferred equity investment from the DoD.

Citing information from TipRanks dated January 28, 2026, MP Materials has characterized the pact as a "binding contract." While the deal appears legally secure, the broader policy reversal in Washington has heightened market awareness of the political risks inherent in public-private partnerships.

The upcoming earnings will offer insight into how the company is navigating an evolving landscape where it now faces a government-backed competitor in USA Rare Earth, while China continues to dominate the global rare earths market.