Why MP Materials Skyrocketed This Week
Shares of MP Materials (NYSE: MP) rocketed 46.7% this week, according to data from S&P Global Market Intelligence.
MP Materials is one of only a few U.S.-based miners with rare earths reserves, and the only one with a fully integrated operational mine, processing facility, and magnet-manufacturing facility in Mountain Pass, CA just outside Las Vegas. As such, the company's importance has come to the fore amid the U.S.-China trade war, since China is the world's dominant processor of rare earths materials. During recent trade negotiations, China slowed shipments of rare earth materials to the U.S. as a bargaining chip.
On Thursday, the Department of Defense announced a massive investment in and long-term commitment to MP Materials. The announcement gave investors not only a high degree of certainty about MP's future profit growth but also a validation of the company's strategic importance.
Source Fool.com
