US-China Trade Deal Rattles Rare Earth Producer MP Materials

Shares of MP Materials plummeted following the announcement of a new trade framework between the United States and China. Ironically, a diplomatic breakthrough now poses a significant threat to the rare earth elements producer’s business model.

MP Materials has historically benefited from its position as America’s primary domestic supplier of rare earth elements to both defense and technology sectors. The company operates the Mountain Pass facility in California and secured a $400 million investment from the Department of Defense as recently as July 2025. This strategic importance, however, faces new challenges under the proposed trade agreement.

The U.S. Treasury Department announced what it called a “highly successful framework agreement” Read more...