MP Materials Corp (NYSE:MP) shares are falling Monday following the company’s announcement last week that it has halted shipments of rare earth concentrate to China.
What To Know: MP Materials detailed its strategy to reindustrialize the rare earth supply chain within the United States in a press release issued late last week.
The decision comes in response to China’s imposition of 125% retaliatory tariffs on U.S. rare earth imports, which MP Materials said is “neither commercially rational nor aligned with America’s national interest.”
The company has invested nearly $1 billion to restore the full rare earth supply chain domestically. Currently, its California refinery processes nearly half of its production, with most of that material sold into markets outside China, including Japan, South Korea and the United States.
MP Materials is also accelerating downstream operations by ramping up oxide production, fast-tracking heavy rare earth separation and bringing magnet production online in Texas.
This strategic shift aligns with broader U.S. efforts to reduce reliance on Chinese rare earth processing amid escalating trade tensions. As the only scaled rare earth production source in the U.S., MP Materials’ move is seen as a significant step toward securing a resilient domestic supply chain for critical materials used in electrification and advanced technologies.
Metals and mining companies initially surged last week following reports that the Trump administration planned to stockpile deep-sea metals to counter China.
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People familiar with the matter said the move was focused on countering China's rare earth supply chains and battery mineral dominance as the U.S. aims to become self-sufficient when it comes to critical minerals supply.
Investors are closely watching how these developments will impact MP Materials’ financial performance and the broader rare earth market. The company’s focus on expanding domestic capabilities may position it favorably in the long term, despite potential short-term challenges associated with the cessation of exports to China.
The recent headlines surrounding rare earth supply chains has also sparked significant discussion across various social media platforms. On X, MP Materials’ official account shared the press release, garnering attention from industry analysts and investors. Additionally, the news has been widely shared and discussed on Stocktwits, LinkedIn and Reddit, with users debating the implications for the U.S. rare earth supply chain and the broader geopolitical landscape.
MP Materials is scheduled to release its first-quarter 2025 financial results on May 8, which will provide further insight into the company’s performance amid these strategic shifts. Analysts currently expect the company to report a loss of 11 cents per share on revenue of $68.68 million, according to Benzinga Pro.
MP Price Action: MP Materials shares were down 12.1% at $23.17 at the time of publication Monday, per Benzinga Pro.
Photo: courtesy of MP Materials.