MP - Why Shares of MP Materials Soared 25.7% in March
Extending their 14% rise in February , shares of rare earth metals mining company MP Materials (NYSE: MP) soared 25.7% in March, according to data from S&P Global Market Intelligence .
While the main source of investor interest in February was the company's fourth-quarter 2021 earnings report, enthusiasm for the stock last month stemmed from the growing interest in President Biden's use of the Defense Production Act (DPA) to secure the nation's supply of materials used in electric vehicles -- and the eventual decision of the White House to invoke the DPA.
On March 14, senators sent a letter to the White House asking President Biden to invoke the DPA -- which gives the president the authority to compel industries to produce goods for national defense. The motivation for the letter stems from interest in shoring up the nation's supply of rare earth metals, a critical component of batteries found in electric vehicles. Representing support from both sides of the aisle, Democrat Joe Manchin and Republicans Lisa Murkowski, James Risch, and Bill Cassidy penned the letter, suggesting that the topic isn't a partisan issue.
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Why Shares of MP Materials Soared 25.7% in March