Rare-Earth Miner MP Materials Stock Rallies Amid US-China Trade Talks

Key Takeaways

• MP Materials stock is rising in premarket trading Tuesday after a nearly 8% jump yesterday as the U.S. and China launched new trade talks.
• Officials have said a priority of the talks is getting restrictions lifted on the trade of rare-earth metals, a market that China dominates.
• The materials are used in production of electric cars, smartphones, and laptops.

Shares of MP Materials (MP) are extending a recent rally into Tuesday as officials from the U.S. and China are in the midst of trade talks, with the importing and exporting of rare-earth materials a key topic.

Representatives from the countries reportedly started talks on Monday in London, discussing the transfer of technology and rare earths, which are used in the production of a variety of technology like electric cars, smartphones, and laptops.

China imposed restrictions on the exports of certain minerals to the U.S. when trade talks were getting increasingly tense in early April, and U.S. officials have said getting the limits lifted is a priority of these renewed talks. President Trump said last week that Chinese President Xi Jinping was “extremely hard” to make a deal with.

After gaining nearly 8% on Monday, shares of U.S. rare-earths miner MP Materials were up another 3% soon before the opening bell. They have rallied roughly 50% since closing at a four-month low of $18.77 on May 27.

Shares of MP Materials and USA Rare Earth (USAR) have been lifted this year as Trump has said the production and stockpiling of rare earths is a priority of his administration, citing national security concerns and a desire to be less reliant on China for the materials.