Latest news with #MP Materials
Yahoo
6 hours ago
- Business
- Yahoo
Jim Cramer Calls MP Materials' and Defense Department's Deal 'Ingenious'
MP Materials Corp. (NYSE:MP) is one of the stocks Jim Cramer shared his thoughts on. The company was mentioned by Mad Money's host during the episode, and here's what he had to say: 'This morning, MP Materials announced that the Defense Department's taken a big stake in their company, which controls the largest rare earth mine in the country. The deal, which includes a $1 billion construction loan from a couple of banks along with a separate $150 million loan and a $400 million equity investment from the Defense Department, will ensure that MP can keep developing its Mountain Pass site and build a new rare earth magnet factory essential to our national security. It's all about having a reliable source of rare earths in order to reduce our dependence on China… Heavy machinery at work in a mining facility, excavating the earth for rare earth minerals. MP Materials (NYSE:MP) produces rare earth materials and magnetic precursor products. The company operates a rare earth mine and processing facility and supports the production of advanced magnetics. While we acknowledge the potential of MP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Al Arabiya
13 hours ago
- Business
- Al Arabiya
America's only rare earth producer gets a boost from Apple and Pentagon agreements
MP Materials, which runs the only American rare earths mine, announced a new $500 million agreement with tech giant Apple on Tuesday to produce more of the powerful magnets used in iPhones, as well as other high-tech products like electric vehicles. This news comes on the heels of last week's announcement that the US Defense Department agreed to invest $400 million in shares of the Las Vegas-based company. That will make the government the largest shareholder in MP Materials and help increase magnet production. Despite their name, the 17 rare earth elements aren't actually rare, but it's hard to find them in a high enough concentration to make a mine worth the investment. They are important ingredients in everything from smartphones and submarines to EVs and fighter jets, and it's those military applications that have made rare earths a key concern in ongoing US trade talks. That's because China dominates the market and imposed new limits on exports after President Donald Trump announced his widespread tariffs. When shipments dried up, the two sides sat down in London. The agreement with Apple will allow MP Materials to further expand its new factory in Texas to use recycled materials to produce the magnets that make iPhones vibrate. The company expects to start producing magnets for GM's electric vehicles later this year, and this agreement will let it start producing magnets for Apple in 2027. The Apple agreement represents a tenth of the company's pledge to invest $500 billion domestically during the Trump administration. And although the deal will provide a significant boost for MP Materials, the agreement with the Defense Department may be even more meaningful. Neha Mukherjee, a rare earths analyst with Benchmark Mineral Intelligence, said in a research note that the Pentagon's 10-year promise to guarantee a minimum price for the key elements of neodymium and praseodymium will guarantee stable revenue for MP Minerals and protect it from potential price cuts by Chinese producers that are subsidized by their government. 'This is the kind of long-term commitment needed to reshape global rare earth supply chains,' Mukherjee said. Trump has made it a priority to try to reduce American reliance on China for rare earths. His administration is both helping MP Materials and trying to encourage the development of new mines that would take years to come to fruition. China has agreed to issue some permits for rare earth exports, but not for military uses, and much uncertainty remains about their supply. The fear is that the trade war between the world's two biggest economies could lead to a critical shortage of rare earth elements that could disrupt production of a variety of products. MP Materials can't satisfy all of the US demand from its Mountain Pass mine in California's Mojave Desert. The deals by MP Materials come as Beijing and Washington have agreed to walk back on their non-tariff measures: China is to grant export permits for rare earth magnets to the US, and the US is easing export controls on chip design software and jet engines. The truce is intended to ease tensions and prevent any catastrophic fall-off in bilateral relations, but is unlikely to address fundamental differences as both governments take steps to reduce dependency on each other.
Yahoo
13 hours ago
- Business
- Yahoo
America's only rare earth producer gets a boost from Apple and Pentagon agreements
MP Materials, which runs the only American rare earths mine, announced a new $500 million agreement with tech giant Apple on Tuesday to produce more of the powerful magnets used in iPhones as well as other high-tech products like electric vehicles. This news comes on the heels of last week's announcement that the U.S. Defense Department agreed to invest $400 million in shares of the Las Vegas-based company. That will make the government the largest shareholder in MP Materials and help increase magnet production. Despite their name, the 17 rare earth elements aren't actually rare, but it's hard to find them in a high enough concentration to make a mine worth the investment. They are important ingredients in everything from smartphones and submarines to EVs and fighter jets, and it's those military applications that have made rare earths a key concern in ongoing U.S. trade talks. That's because China dominates the market and imposed new limits on exports after President Donald Trump announced his widespread tariffs. When shipments dried up, the two sides sat down in London. The agreement with Apple will allow MP Materials to further expand its new factory in Texas to use recycled materials to produce the magnets that make iPhones vibrate. The company expects to start producing magnets for GM's electric vehicles later this year and this agreement will let it start producing magnets for Apple in 2027. The Apple agreement represents a tenth of the company's pledge to invest $500 billion domestically during the Trump administration. And although the deal will provide a significant boost for MP Materials, the agreement with the Defense Department may be even more meaningful. Neha Mukherjee, a rare earths analyst with Benchmark Mineral Intelligence, said in a research note that the Pentagon's 10-year promise to guarantee a minimum price for the key elements of neodymium and praseodymium will guarantee stable revenue for MP Minerals and protect it from potential price cuts by Chinese producers that are subsidized by their government. 'This is the kind of long-term commitment needed to reshape global rare earth supply chains," Mukherjee said. Trump has made it a priority to try to reduce American reliance on China for rare earths. His administration is both helping MP Materials and trying to encourage the development of new mines that would take years to come to fruition. China has agreed to issue some permits for rare earth exports but not for military uses, and much uncertainty remains about their supply. The fear is that the trade war between the world's two biggest economies could lead to a critical shortage of rare earth elements that could disrupt production of a variety of products. MP Materials can't satisfy all of the U.S. demand from its Mountain Pass mine in California's Mojave Desert. The deals by MP Materials come as Beijing and Washington have agreed to walk back on their non-tariff measures: China is to grant export permits for rare earth magnets to the U.S., and the U.S. is easing export controls on chip design software and jet engines. The truce is intended to ease tensions and prevent any catastrophic fall-off in bilateral relations, but is unlikely to address fundamental differences as both governments take steps to reduce dependency on each other. ___ Associated Press reporters David Klepper and Didi Tang contributed to this report from Washington D.C. Michael Liedtke contributed from San Francisco. Josh Funk, The Associated Press Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Independent
13 hours ago
- Business
- The Independent
America's only rare earth producer gets a boost from Apple and Pentagon agreements
MP Materials, which runs the only American rare earths mine, announced a new $500 million agreement with tech giant Apple on Tuesday to produce more of the powerful magnets used in iPhones as well as other high-tech products like electric vehicles. This news comes on the heels of last week's announcement that the U.S. Defense Department agreed to invest $400 million in shares of the Las Vegas-based company. That will make the government the largest shareholder in MP Materials and help increase magnet production. Despite their name, the 17 rare earth elements aren't actually rare, but it's hard to find them in a high enough concentration to make a mine worth the investment. They are important ingredients in everything from smartphones and submarines to EVs and fighter jets, and it's those military applications that have made rare earths a key concern in ongoing U.S. trade talks. That's because China dominates the market and imposed new limits on exports after President Donald Trump announced his widespread tariffs. When shipments dried up, the two sides sat down in London. The agreement with Apple will allow MP Materials to further expand its new factory in Texas to use recycled materials to produce the magnets that make iPhones vibrate. The company expects to start producing magnets for GM's electric vehicles later this year and this agreement will let it start producing magnets for Apple in 2027. The Apple agreement represents a tenth of the company's pledge to invest $500 billion domestically during the Trump administration. And although the deal will provide a significant boost for MP Materials, the agreement with the Defense Department may be even more meaningful. Neha Mukherjee, a rare earths analyst with Benchmark Mineral Intelligence, said in a research note that the Pentagon 's 10-year promise to guarantee a minimum price for the key elements of neodymium and praseodymium will guarantee stable revenue for MP Minerals and protect it from potential price cuts by Chinese producers that are subsidized by their government. 'This is the kind of long-term commitment needed to reshape global rare earth supply chains," Mukherjee said. Trump has made it a priority to try to reduce American reliance on China for rare earths. His administration is both helping MP Materials and trying to encourage the development of new mines that would take years to come to fruition. China has agreed to issue some permits for rare earth exports but not for military uses, and much uncertainty remains about their supply. The fear is that the trade war between the world's two biggest economies could lead to a critical shortage of rare earth elements that could disrupt production of a variety of products. MP Materials can't satisfy all of the U.S. demand from its Mountain Pass mine in California's Mojave Desert. The deals by MP Materials come as Beijing and Washington have agreed to walk back on their non-tariff measures: China is to grant export permits for rare earth magnets to the U.S., and the U.S. is easing export controls on chip design software and jet engines. The truce is intended to ease tensions and prevent any catastrophic fall-off in bilateral relations, but is unlikely to address fundamental differences as both governments take steps to reduce dependency on each other. ___ Associated Press reporters David Klepper and Didi Tang contributed to this report from Washington D.C. Michael Liedtke contributed from San Francisco.
Washington Post
13 hours ago
- Business
- Washington Post
America's only rare earth producer gets a boost from Apple and Pentagon agreements
MP Materials, which runs the only American rare earths mine , announced a new $500 million agreement with tech giant Apple on Tuesday to produce more of the powerful magnets used in iPhones as well as other high-tech products like electric vehicles. This news comes on the heels of last week's announcement that the U.S. Defense Department agreed to invest $400 million in shares of the Las Vegas-based company. That will make the government the largest shareholder in MP Materials and help increase magnet production.
