MP Materials (MP, Financial) has announced it will stop exporting rare earth concentrates to China in response to recent tariff and export control measures implemented by the Chinese government. The decision aims to protect the company's economic interests and aligns with national priorities.
The company outlined its strategy to offset this disruption by significantly investing in domestic resources. Nearly $1 billion has been spent to rebuild the rare earth supply chain within the United States. Its refinery in California currently processes about half of its output, with the majority being sold to countries outside of China, such as Japan, South Korea, and the United States.
MP Materials is also accelerating its downstream operations, enhancing oxide production, and advancing the separation of heavy rare earth elements. Additionally, the company is developing a facility in Texas to produce magnets.
In light of the current geopolitical climate, numerous manufacturers in critical sectors have approached MP Materials seeking a stable and reliable supply of these essential materials. The company reports active discussions with federal officials who are eager to bolster U.S. industrial capabilities both now and in the future.
