Why MP Materials Stock Just Crashed
Six months ago, MP Materials (NYSE: MP) investors got some excellent news. The U.S. government -- specifically, the Department of Defense -- would invest $400 million in MP Materials preferred convertible stock.
More than that, DOD signed a 10-year supply agreement to buy all the rare-earth metals that MP could produce, and gave the company a price guarantee to purchase its neodymium-praseodymium at least $110 per kilogram.
Today, worries are rising that the price guarantee might go away, and this is taking a toll on MP Materials stock price, now down 9.4% at 1:15 p.m. ET.
Source Fool.com
