Entering text into the input field will update the search result below

MP Materials soars after China's move to restrict rare earth exports

Jul. 05, 2023 10:51 AM ETMP Materials Corp. (MP)By: Carl Surran, SA News Editor31 Comments
Modern industry depends on mining for the valuable rare-earth, rare earth crystal detail

Joaquin Corbalan/iStock via Getty Images

MP Materials (NYSE:MP) +5.1% in Wednesday's trading after China announced it will restrict exports of rare earth specialty materials germanium and gallium products used in computer chips and other components.

Gallium is a soft silver metal used to produce compound semiconductor wafers

Recommended For You

Comments (31)

Have a tip? Submit confidentially to our News team. Found a factual error? Report here.

Best way to play this is to capitalize on the volatility. Sell puts or strangle.
china save it, take down the CCP!!!!
We knew this was coming. Not so coincidentally, I bumped up my positions in both MP and LYSDY recently. I probably should have been more aggressive.
young usd profile picture
hopefully $SQM get's some steam from this
LYSDY is up a similar amount.
fidelity comment profile picture
germanium and gallium are NOT rare earths. The only rare earth that starts with the letter 'G' is gadolinium. Wikipedia is your friend.
@fidelity comment inium schminium.
Anyone buying $MP??
Investor since ‘73 profile picture
@Ronaldo123 Only the smart people. Not a crowded trade.
Since MP sends all their raw rare earth material to China for separation, it will be interesting to see how long before China shuts down that supply chain. Lynas is a much better long term bet in the rare earth space.
jerseyvalueinvestor profile picture
@Whoosh1999 Thats why there is government funding to build a processing facility in the US.

old news in fact

@jerseyvalueinvestor It's is more than a matter of funding. There is a reason why MP Materials hasn't performed any significant separations since they've been a company (going back to Molycorp and earlier) - they don't have a cost competitive separation technology. DoD wants to fund their research but it will take several years to develop their capability at production scale.

They have a mine full of light rare earths with minimal concentrations of heavy rare earth elements. There is a reason why China dominates this space besides lax environmental laws. They developed the separation technology and they hold onto it as a competitive advantage to support their real "mines-to-magnets" strategy that Molycorp/MP Materials have only dreamed about.

Market is just reacting to headline news here without understanding the details or the risks IMO.
jerseyvalueinvestor profile picture
@Whoosh1999 Our buddies in Norway have plenty of rare earths.

And lets be serious, rare earths are non rare at all if you start mining in the ocean.

This is a nothingburger long term, china is gasping for air and desperate. This was their final card to play.
Investor since ‘73 profile picture
Gee whiz, who could’ve seen this coming? LOL!!
The Fortune Teller profile picture
MP deserves to trade a lot higher than where it's today, regardless of (but certainly following) the recent news.
jerseyvalueinvestor profile picture
@The Fortune Teller I doubled my money on this way back, was one of the only SPAC's that interested me, ill be adding to my non-existent MP position in the coming months.
@The Fortune Teller I’m adding, concur
@The Fortune Teller

MP seems like it has interesting cash flow and could fairly be priced a bit higher but I am not sure I can fully evaluate the market it operates in, most of the rare earths markets are tiny.

Still profitable but I am not as confident in most rare earths compared to the long tailwinds that exist for lithium.
China is only speeding up international development of rare earth resources and
speeding up international decoupling. Recent events show Westerners are more than willing to sacrifice short term pain for long term gains when it comes to national security.
Investing for Freedom profile picture
@UncleSherpalot easy said than done, but in the right direction. China dominates the refinement of raw earth, which is a bigger problem.
@UncleSherpalot errbody be like f**k china.... and err russia. Finally.
Well what do we expect after the USA plans to limit China's chip making ability.
That's the way it works isn't it? Shouldn't surprise anyone.
Duncan20903 profile picture
Now it's just plain silly to buy a mining company which doesn't produce the metals China restricted.
CincinnatiRick profile picture
@Duncan20903 Not "silly" at all...the implication is that might easily follow.

About MP

SymbolLast Price% Chg
Market Cap
Yield (TTM)
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

Related Stocks

SymbolLast Price% Chg
MP Materials Corp.
Sigma Lithium Corporation
Materion Corporation
Lynas Rare Earths Limited
Hudbay Minerals Inc.
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.