MP - Is This EV and Tech Industry Supplier the Next Megagrowth Stock?
As demand for electric vehicles (EVs) and semiconductors soars, many investors are focused on lithium mining stocks to help meet the needs of the tech industry. But lithium isn't the only elemental material needed for large batteries, chip components, and the like. Rare earth materials -- like lanthanum, cerium, and samarium -- are also in demand for EVs and electric grid batteries, medical devices, and other tech manufacturing. Some estimates point toward sales of these elemental materials doubling from 2022 through 2026.
That's where MP Materials (NYSE: MP) comes in. A rare special purpose acquisition company ( SPAC ) stock from 2020 that's actually holding its own during the current bear market, MP is a top producer of rare earth materials that could have some advantages over its peers. Is this a megagrowth stock in the making?
Las Vegas-based MP Materials is the only rare earth materials mine in North America. This puts MP in a unique position. The market for these chemical elements has historically been dominated by operations in China, where low environmental impact standards have given them an edge over mining companies in the U.S. and Canada. However, MP's "Mountain Pass" mine meets the higher standards of North America in spite of the dirty process involved in extracting these elements.
For further details see:
Is This EV and Tech Industry Supplier the Next Megagrowth Stock?