MP - Why MP Materials Stock Jumped as Much as 15% Today
Shares of rare earth metals miner MP Materials (NYSE: MP) jumped as much as 15% today, with a big share increase coming at roughly 10 a.m. EST. The relatively young company, which came public via a blank check company (formally known as a special purpose acquisition company) in late 2020, is a play on a very interesting theme right now. Although nothing material changed about the story here today, the company did get to talk about it.
Rare earth metals are used in high-tech products, notably the batteries that help make electric vehicles possible. However, the vast majority of these materials come out of Asia, mostly China. China has reportedly discussed the imposition of export restrictions, presumably as a trade bargaining tool, which could be a disaster for non-Chinese companies.
MP Materials is one of the few non-Chinese options for companies to acquire rare earth metals. So it is a play on two separate and high-profile issues today -- rare earth metals/electric vehicles and trade with China. On top of that, the company is in the process of expanding its business so that it can provide a broader and more comprehensive replacement to Chinese rare earth supplies. So there's even internal growth potential here, as well. All in, there really is a lot to like about the story MP Materials has to tell, and investors tend to like stories.
For further details see:
Why MP Materials Stock Jumped as Much as 15% Today