Duff & Phelps Investment Management Co. has reportedly trimmed its positions by 64.1% in MP Materials Corp. (NYSE: MP), the primary producer of rare earth materials in the United States. According to the latest 13F SEC filing from the investment firm, around 13,446 shares were sold during the 3rd quarter, retaining just 7,519 shares (valued at ~$504,000).
This strategic divestment move is coming during a pivotal phase for MP Materials, which is currently transitioning from a raw material exporter to a value-added manufacturer of high-performance magnets, which are required in electric vehicles (EVs) and defense technology.
Even though this slashing of holdings underlines the ongoing market volatility in the critical minerals sector, it reflects institutional rebalancing as MP Material continues to execute its 10X strategy, a multi-billion-dollar plan to build a domestic rare earth magnet manufacturing campus in Northlake, Texas. This shift from a miner to a fully integrated manufacturer is the core aspect of the company’s 2026 vision.
Vertical Integration and the 10X Vision
MP Materials, the vertically integrated rare earths producer centered on the Mountain Pass mine in California, is the only commercially viable rare earth mining and producing site in the US, producing key rare earth elements like neodymium, praseodymium, and cerium, which are needed in the making of EVs, wind turbines, and defense applications.
No longer just a mining operation, MP Material is currently commissioning its heavy rare earth separation facility, with production of Dysprosium (Dy) and Terbium (Tb) expected by mid-2026. These materials are essential for the production of permanent magnets used in electric vehicles and wind turbines. The CFO, Ryan Corbett, recently noted that the company is optimizing ‘quality over quantity’, prioritizing high-margin separated products, such as Neodymium-Praseodymium (NdPr) and heavy rare earths, rather than just maximizing raw concentrate output.
Meanwhile, the 10X campus development of the company in Texas is expected to produce 10,000 metric tons (MT) of magnets annually. Combined with its independent facility in Texas, this setup will create a fully integrated US supply chain. The long-term agreements with General Motors (GM) and the US Department of Defense (DoD) provide guaranteed demand, price stability, and support for the 10X expansion, mitigating the risks from market volatility.
Market Sentiment and Institutional Shifts
Despite the offloading move from Duff & Phelps, the market sentiment for MP Material remains bullish, with 13 out of 16 market analysts signaling a consistent ‘Buy’ status, with an average price target of ~$79.
Amid this optimistic trend, there were insider activities too in the recent months. However, these sales were pre-planned and executed at significantly higher price points than the lows of the previous years. It signals a profit realization after the 200%+ turnover in the last year.
MP Materials is currently shifting its pivot from Chinese sales, formerly its primary revenue source, towards a domestic chain with the motto, “mine to magnet”. This comes out as a direct response to the geopolitical tensions and China’s export restrictions on rare earth technology.
With MP Materials being a key to US rare earth independence and supply chain security, the asset attracts investors who are willing to pay a premium with its strategic and geopolitical angle, which aims to reduce US dependence on Chinese rare-earth imports. With today’s stock price at around $60 per share, it is clear that the market is already pricing in MP’s role as a cornerstone US rare-earth supplier.
