Rising demand for rare earths and U.S. supply-chain shifts could help MP Materials and USA Rare Earth outperform this earnings season.
MP Materials (MP) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
China agrees to defer its plan to tighten export controls on rare-earth materials for a year after a meeting between President Donald Trump and Xi Jinping Thursday.
MP Materials (NYSE:MP), a rare-earth materials company, has experienced a nearly 10% decline in its stock price over the last five trading days and is down approximately 30% from its peak on October 14, when China imposed additional restrictions on certain rare-earth exports. This drop occurs in the context of optimism surrounding a possible U.S.-China trade agreement, with President Donald Trump and Chinese President Xi Jinping scheduled to meet in South Korea on Thursday.
Rare earth stocks find themselves underground on Monday as Treasury Secretary Scott Bessent said he expects that China and the U.S. will work out a trade deal in the near future.
China controls ~90% of rare earth refining, but environmental strain and policy pushback make its price-suppression model geopolitically and economically untenable. Global diversification is inevitable. As America's only integrated mine-to-magnet producer, MP is central to ex-China supply chains, supported by DoD policy, GM/Apple contracts, and guaranteed domestic pricing. Rare earths are foundational to AI, EVs, and defense; MP's valuation reflects strategic utility, not commodity cycles, positioned for decade-long compounding in Western industrial sovereignty.
The Trump administration owns part of MP Materials Corp. (NYSE: MP), the rare earth provider, and Intel Corp.
A firestorm of investor interest has engulfed MP Materials NYSE: MP, and the catalyst is the escalating economic tension between the United States and China. On Oct. 13, the MP Materials' stock price jumped over 21% in a single session, driven by trading volume of nearly 50 million shares, almost five times its daily average.
In an interview with the Financial Times published early on Tuesday, Treasury Secretary Scott Bessent strongly criticized Beijing's decision to expand export controls on rare earth minerals. Bessent argued the levies were a sign of “how weak” China's economy was and said: “They want to pull everybody else down with them.
MP Materials (NYSE:MP), an American company specializing in rare-earth materials and based in Las Vegas, Nevada, experienced a stock increase of approximately 8% on Friday after China revealed new export restrictions on rare-earth elements. The updated regulations will necessitate that foreign purchasers secure licenses, heightening concerns over supply shortages.
The recent sector rally was prompted by escalating trade tensions between the U.S. and China late last week.
MP Materials (MP) witnessed a jump in share price last session on above-average trading volume. The latest trend in earnings estimate revisions for the stock suggests that there could be more strength down the road.