US-China Rare Earth Deal Rattles MP Materials Investors

Shares of MP Materials came under significant selling pressure following the announcement of a new trade framework between the United States and China. The agreement, which facilitates increased Chinese exports of rare earth elements to the American market, has sent shockwaves through the domestic production sector, challenging previous market assumptions.

Market participants responded swiftly to the geopolitical shift. MP Materials stock plummeted 10.9% as investors digested the implications of renewed Chinese competition. The core investment thesis—that US producers would benefit long-term from trade restrictions and geopolitical tensions—faced a substantial challenge. The newly signed framework allows for substantially higher rare earth shipments from China, the world’s dominant supplier, directly into Read more...