MP Materials Corp. (MP) saw its stock soar 9.93% in intraday trading on Wednesday, following two significant announcements that have bolstered investor confidence in the rare earth materials company.

The primary driver of the stock's jump is the announcement of a strategic joint venture between MP Materials, the U.S. Department of War, and Saudi Arabian Mining Company (Maaden) to develop a rare earth refinery in Saudi Arabia. Under this agreement, MP Materials and the DoW will collectively hold a 49% stake in the venture, with Maaden holding at least 51%. This collaboration aims to diversify and strengthen the global supply chain for rare earth materials, benefiting both the United States and its allies. MP Materials will contribute its technical expertise in rare earth separation, refining, and global sourcing to the project.

Adding to the positive sentiment, Goldman Sachs initiated coverage of MP Materials with a Buy rating and set a price target of $77, implying a 32% upside potential. This bullish stance from a major Wall Street firm underscores the growing importance of MP Materials in the rare earth sector, particularly as Western nations scramble to reduce their dependence on China for these critical elements. The company's strategic position as the largest rare earth producer outside of China, coupled with its ambitious plans to integrate the entire supply chain from mining to magnet production, has clearly caught the attention of investors and analysts alike.