MP Materials Corp. saw its stock soar 5.71% intraday, staging a notable rebound in Monday's trading session.

The surge is attributed to a cluster of positive catalysts in the rare earth sector. USA Rare Earth announced a $2.8 billion acquisition of Brazilian rare earth producer Serra Verde, marking the largest M&A transaction in the global rare earth industry and significantly boosting sector confidence. Serra Verde's projected heavy rare earth output is expected to account for roughly half of total supply outside Asia by 2027, underscoring the strategic value of non-Chinese rare earth assets.

Additionally, Wedbush recently initiated coverage on MP Materials with an Outperform rating and a $90 price target. The analyst highlighted the company's Mountain Pass mine as virtually irreplaceable in the U.S. domestic rare earth supply chain, positioning MP Materials as the designated national champion in rare earth production amid rising supply chain security priorities.