The ongoing U.S.-China trade clash has catapulted MP Materials (NYSE: MP), the only rare earth mining and processing company in the U.S., into the spotlight. As of 11:25 AM ET, its stock soared by an astonishing 22.7%, dwarfing the S&P 500’s modest 1.1% gain. The surge comes amidst reports that President Trump plans to authorize the establishment of a U.S. strategic reserve for rare earth minerals via an executive order.
China’s recent cessation of rare earth elements and magnets exports to the U.S.—a critical move targeting industries like semiconductors, electric vehicles, and defense—has disrupted global supply chains. With nearly 70% of U.S. rare earth imports dependent on China, this halt could have a far-reaching economic impact, especially as China dominates over 90% of global production of key materials like dysprosium, terbium, and yttrium.
MP Materials’ Mountain Pass mine, the sole rare-earth mining site in the U.S., is now a key strategic asset—though its reliance on the Chinese market for rare earth concentrate exports leaves it vulnerable to Beijing’s policies. Analysts highlighted that while the rare earth crisis benefits MP Materials in the short term, high volatility and geopolitical risks make it an investment suited only for those with ample risk tolerance.
Market experts noted that China’s new export restrictions on rare earth products may cause extended supply shortages, with export licenses delayed by months. Prolonged disruptions of over 60 days threaten to cripple global manufacturing pipelines. The White House’s tough stance on trade continues to fuel uncertainty, with additional semiconductor tariffs expected next week.
While this rare earth tug-of-war benefits MP Materials temporarily, it underscores the fragility of U.S. supply chains reliant on adversarial rivals.
