China just kicked it up a notch in the trade war with the U.S…
On Monday, China imposed new restrictions on rare earth metal exports – critical components for electric vehicles, smartphones, and military technologies. This move has notably impacted a few U.S.-based stocks in the niche rare earth sector.
Regular readers know I’m a big believer in the rare earth megatrend. It’s an investment theme I’ve been following for years. And yesterday, one company I’ve kept a close eye on got a major boost from this development…
MP Materials (MP) is the largest rare earth producer in the Western Hemisphere. And on Monday, its shares closed up over 21%.
In response to China’s export restrictions, the U.S. government is considering establishing a strategic reserve of critical rare earth minerals and metals. This initiative aims to reduce reliance on foreign sources and prepare for potential future supply disruptions due to geopolitical tensions.
In my opinion, this move is well overdue. And with China controlling the market, it’s imperative it happens now.
If you don’t know, China’s stranglehold on the rare earth market has been a major vulnerability for the U.S. and its allies for years. We’re talking about control of over 70% of global rare earth production and nearly 90% of processing capacity.
That’s a huge deal.
These aren’t just obscure materials buried deep in science textbooks that you never heard of before. Even though you will undoubtedly have trouble pronouncing most of them, they’re the lifeblood of next-gen technology. They’re what keeps the modern world innovating!
This dominance didn’t happen overnight. China spent decades subsidizing its rare earth industry, undercutting global competition, and building out a vertically integrated supply chain.
Meanwhile, the U.S. let its own production capabilities wither. But now, the tides are starting to shift – and fast. With MP Materials leading the charge, America is finally gaining ground in this critical sector.
This isn’t just about economics… it’s about national security and future-proofing American innovation.
MP Materials is proactively expanding its domestic refining capabilities. The company has begun commercial production of neodymium-praseodymium (NdPr) metal at its Independence facility in Fort Worth, Texas. This marks the first such U.S. production in a generation.
What’s more, trial production of automotive-grade, sintered neodymium-iron-boron (NdFeB) magnets is underway. These magnets are essential for various high-tech applications, including vehicles, drones, robotics, electronics, and aerospace and defense systems.
MP Materials also operates the Mountain Pass mine and processing facility in California. That mine achieved record-breaking production numbers for 2024, delivering more than 45,000 metric tons of rare earth oxides contained in concentrate and producing around 1,300 metric tons of NdPr oxide.
This sets a U.S. record for primary production and underscores the company’s commitment to reestablishing a fully integrated, domestic supply chain for these critical components.
MP Materials’ strategic advancements position the company as a key player in the rare earths market. These moves align with broader efforts to enhance U.S. manufacturing capabilities and reduce reliance on international suppliers for critical resources.
In short, this is a generational shift unfolding right before our eyes. As the world scrambles to secure critical resources, companies like MP Materials are setting the stage for massive, long-term upside. That’s why it’s crucial to start positioning yourself now for potentially life-changing gains.
Here’s to the future,
Matt McCallEditor, Market Insights
P.S. The recent market action has been crazy…
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The post The U.S. Rare Earth Comeback Starts Now – Are You In? appeared first on Centurion Publishing.
