MP Materials Stock Surges on US-China Tariff Threats
Shares of the rare earth producer jumped over 8% as new trade tensions highlight its critical role in the domestic supply chain.
MP Materials (NYSE: MP), the largest rare earth producer in the Western Hemisphere, saw its stock rally 8.37% on Friday, closing at an all-time high. The surge followed renewed trade tensions between Washington and Beijing, underscoring the company’s strategic importance to the U.S. domestic supply chain.
The rally was ignited after President Donald Trump on Chinese goods. The threat was a direct response to China’s new export restrictions on rare earth elements, critical components in everything from electric vehicles and wind turbines to advanced military hardware. The Chinese restrictions, which took effect earlier in the week, require special licenses for exporting products containing these vital materials.
As America’s only fully integrated rare earth mining and processing facility, MP Materials is uniquely positioned to benefit from any disruption in China’s supply. The market’s reaction reflects growing investor confidence that the company will capture increased demand as the U.S. seeks to reduce its reliance on foreign sources for critical minerals. This strategic position has not gone unnoticed by the U.S. government; the Department of Defense became a major shareholder in July 2025, to support the company’s mission.
Wall Street has taken a bullish stance, with many analysts upgrading the stock. The consensus rating among 14 analysts is a ',' with some firms initiating 'strong buy' ratings in light of the geopolitical developments. MP Materials is currently investing $700 million to onshore its processing facilities, a move that would eliminate its current need to send concentrated rare earths to China for final processing and further insulate it from trade disputes.
Friday’s price action is part of a larger trend for the company, which has seen its stock soar over 350% year-to-date. As geopolitical tensions continue to simmer, investors are betting that MP Materials will play a pivotal role in America's push for supply chain independence.