MP Materials Corp. (MP) stock surged 6.83% in early trading on Monday, extending its rally as investors reacted to a strong second-quarter earnings report and renewed policy focus on domestic critical mineral supply chains.

The company reported Q2 revenue of $108.5 million, an 89% year-over-year increase that handily beat the analyst consensus of approximately $96.9 million. Its adjusted loss per share narrowed to just $0.01 from a loss of $0.13 in the prior year, driven by growth in rare earth sales and a U.S. government price support agreement. Additionally, MP Materials launched Project Swarm, targeting the drone industry, and has already signed subscription agreements with customers in the U.S. and allied nations.

On the policy front, President Trump convened a meeting with executives from major global mining companies on August 7 at the State Department to secure critical mineral supply for the U.S. and its allies, with MP Materials among the confirmed participants. The anticipation of multiple deals and memoranda of understanding provided further tailwinds for the sector. Deutsche Bank maintained its Buy rating on MP Materials, while the average analyst price target stands at $77.16 according to FactSet, suggesting significant upside potential from current levels.