Why MP Materials Stock Dropped on Friday
MP Materials (NYSE: MP) stock tumbled 9% through 3 p.m. ET Friday after London's Financial Times reported on a potential competitive threat to MP's vast investments (already made) in reviving the American rare earth mining industry, and capacity to produce rare earth magnets domestically.
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Automotive giants Stellantis and General Motors, along with and Samsung, are investing $150 million in a start-up called Niron Magnetics, which aims to make magnets from common elements such as iron and nitrogen -- rather than rare earth elements (which aren't exactly rare, but can be hard to refine). Various U.S. government agencies have granted the company nearly $70 million more in tax credits and other subsidies.
Source Fool.com
