MP Materials gains on $500 mln Apple rare earth magnets investment

Shares of MP Materials MP.N rise 5.3% to $61.32 premarket; stock hit record high in the previous session

Apple AAPL.O signs a $500 million deal with MP Materials MP.N for rare earth magnets, which will be supplied from its Texas-based Fort Worth facility

TD Cowen expects $200 mln from the deal to be used for a new magnet recycling operation at Mountain Pass

After the Apple agreement, along with a pre-existing General Motors GM.N deal, most of MP’s independent capacity has now been committed - TD Cowen

Brokerage Canaccord Genuity says MP's 10 kilotonnes (kt)/ year of anticipated total capacity not enough and must accelerate

"We need more magnets for complete independence from China, and fast... think this creates room for other magnet manufacturers, including USA Rare Earth USAR.O," Canaccord Genuity

Canaccord Genuity raises their PT to $64 from $55

As of last close, shares are up 273.2% YTD