- MP Materials (MP, Financial) ceases rare earth concentrate shipments to China due to 125% tariffs.
- The company invests nearly $1 billion in the U.S. to restore the rare earth supply chain.
- Nearly 50% of production is processed in California for non-Chinese markets.
MP Materials (MP) has announced a halt in rare earth concentrate shipments to China in response to the imposition of 125% retaliatory tariffs. In a strategic move to combat the tariffs, the company is redirecting its focus on reindustrializing the rare earth supply chain within the United States. As part of this plan, MP has invested close to $1 billion in this initiative. The company's refinery in California is now processing approximately half of its production, with exports targeted at international markets including Japan, South Korea, and the United States.
This bold step is complemented by an acceleration of downstream operations, which include ramping up oxide production, expediting the separation of heavy rare earth elements, and establishing magnet production facilities in Texas. This strategy not only aims to mitigate current revenue impacts due to stockpiling of concentrate but also positions MP Materials as a reliable resource for manufacturers urgently seeking secure, non-Chinese material sources.
MP Materials' collaboration with federal leaders underscores a joint determination to support and fortify the American industrial landscape, ensuring a resilient and self-reliant rare earth supply chain. With commitments to expand its downstream operations and an active communication channel with U.S. government partners, MP Materials is poised to lead the charge in reindustrializing America’s rare earth production capabilities on home soil.
