Why MP Materials Stock Is Skyrocketing Today

2 months ago 24

Scott Levine, The Motley Fool

Mon, Apr 14, 2025, 11:51 AM 3 min read

The commercialized warfare betwixt the United States and China is heating up and is starring investors to gobble up uncommon world mineral banal MP Materials (NYSE: MP), which operates the lone uncommon world excavation and processing installation successful the United States. As of 11:25 a.m. ET, shares of MP Materials person soared 22.7%, portion the S&P 500 (SNPINDEX: ^GSPC) has jumped 1.1%.

Throughout the morning, determination person been reports emerging that suggest President Donald Trump plans to denote an enforcement bid that volition licence the United States to statesman the stockpiling of uncommon world minerals. Consequently, MP Materials is agleam connected investors' radars arsenic it operates the sole uncommon world mining asset, Mountain Pass, successful the United States.

Last week, China halted exports of uncommon world minerals. This represents a devastating stroke to the assorted industries that trust connected uncommon world minerals for the manufacturing of their products, including semiconductors, electrical vehicles, and defense. About 70% of U.S. imports of uncommon world minerals travel from China, the planetary person successful the accumulation of these highly sought-after minerals.

While MP Materials is an evident banal information successful airy of the imaginable announcement of an enforcement bid that allows for the stockpiling of uncommon world minerals, the concern is much nuanced than it whitethorn appear. MP Materials sells its uncommon world minerals ore to customers successful China.

In fact, the institution identifies the pursuing arsenic a hazard origin successful its 10-K: "Changes successful China's governmental situation and policies, including changes successful export argumentation oregon the mentation of China's export argumentation and argumentation connected uncommon earths accumulation oregon the import of uncommon world feedstock, whitethorn adversely impact our fiscal information and results of operations."

The developments astir uncommon world minerals is simply a rapidly changing situation, and determination volition beryllium much quality to come. At this point, lone investors with precocious thresholds for hazard and volatility should beryllium considering a presumption successful MP Materials.

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