MP Materials Corp.'s stock soared 5.05% during intraday trading on Wednesday, as the rare earth miner benefited from positive sector sentiment and specific government backing.

The surge comes amid reports that the U.S. government has taken a stake in MP Materials and guaranteed a floor price for its products. This move is part of a broader White House effort to build a domestic rare-earth supply chain and reduce dependence on China, which refines over 90% of the global supply.

Government support is seen as a critical factor for rare earth companies, as prices are often too low to sustain new market entrants. The guaranteed price floor for MP Materials' output provides revenue stability and validates the company's strategic importance in the national industrial policy.