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Globe and Mail
6 hours ago
- Business
- Globe and Mail
Zacks Investment Ideas feature highlights: MP Materials and Apple
For Immediate Release Chicago, IL – July 30, 2025– Today, Zacks Investment Ideas feature highlights MP Materials MP and Apple AAPL. MP Materials: A Rare Earth Commodity Rare earth elements (REEs) are a group of seventeen rare elements that are essential ingredients for a wide range of modern technologies due to their unique magnetic, luminescent, and electrochemical properties. Zacks Rank #3 (Hold) stock MP Materials is America's only vertically integrated rare earth producer. At its site in Mountain Pass, California, the company mainly mines and processes rare earth elements, particularly Neodymium-Praseodymium (NdPr), which are integral components in high-strength permanent magnets. These rare earth magnets are irreplaceable because, without them, it's impossible to produce electric vehicle motors, wind turbines, robotics, advanced defense systems, and a wide range of consumer electronics such as smartphones. Beyond its California mine, MP Materials is expanding its magnet manufacturing capacity with new facilities in Texas. MP Scores DoD Investment The COVID-19 pandemic highlighted to the world the fragility of the global supply chain. Although tensions between the US and China have cooled somewhat from their peak during the tariff standoff earlier this year, President Donald Trump has insisted that the US onshore and secure critical supply chain components, especially those needed for national security. Because rare earth elements are essential for defense and critical commercial applications, the Department of Defense (DoD) awarded MP Materials a lucrative contract in early July, which includes a $400 million investment in preferred stock and a $150 million loan to help the firm expand its processing capabilities. In addition, DoD has pledged to purchase all of MP's neodymium-praseodymium oxide production from its new facility, ensuring a minimum price that will be paid. Apple Commits $500 Million to MP Materials Tech giant Apple is one of the largest purchasers of rare earth elements globally. On July 15 th, Apple announced that it would invest $500 million into MP Materials to purchase American-made rare earth magnets. Additionally, Apple will use its endless resources to help establish a 'cutting-edge rare earth recycling line in Mountain Pass, California, and develop novel magnet materials and innovative processing technologies to enhance magnet performance.' MP Builds Rare, High-Tight Flag Chart Pattern When it comes to price action, power and distance are often correlated. Following the DoD contract, MP shares bolted 50% in a single trading session as trading volumes soared to seven times the norm. A few weeks later, shares jumped another 20% as volume soared following the Apple news. MP shares have now more than doubled over the past month, forming a classic high-tight flag pattern. While shares may seem extended to amateur investors, such patterns have historically led to robust gains, especially in companies with bullish catalysts like MP. MP Call Flow Deep-pocketed options traders have been piling into December $75 MP calls, suggesting high bullish conviction in the stock into year-end. Bottom Line MP Materials enjoys a monopoly on domestic US rare earth mining and production. In addition to its stranglehold on the rare earth market, MP stands to benefit from significant headwinds, including an investment from the US DoD, and a deal with Apple. Why Haven't You Looked at Zacks' Top Stocks? Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can access their live picks without cost or obligation. See Stocks Free >> Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@ Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release. #1 Semiconductor Stock to Buy (Not NVDA) The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow. One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be. See This Stock Now for Free >> Apple Inc. (AAPL): Free Stock Analysis Report MP Materials Corp. (MP): Free Stock Analysis Report
Yahoo
10 hours ago
- Automotive
- Yahoo
Tesla Secures $4.3B U.S. Battery Deal with LG to Cut China Dependence
LG Energy Solution has signed a $4.3 billion deal to supply Tesla with lithium iron phosphate, or LFP, batteries for energy storage systems—marking a major pivot away from Chinese imports.
News24
2 days ago
- Business
- News24
US-China officials meet in Stockholm to avert trade war as tariff truce expires
US and Chinese officials met in Stockholm on Monday to resume economic talks aimed at extending their trade truce by three months before the 12 August deadline. The talks focused on maintaining critical mineral flows and preventing supply chain disruption rather than seeking major breakthroughs. Deeper structural economic issues remain unaddressed in these negotiations, including US complaints about China's export-driven model flooding markets with cheap goods and China's concerns about US tech export controls. Top US and Chinese economic officials met in Stockholm on Monday to resume talks to resolve longstanding economic disputes at the centre of a trade war between the world's top two economies, aiming to extend a truce by three months. US Treasury Chief Scott Bessent was part of a US negotiating team that entered Rosenbad, the Swedish prime minister's office in central Stockholm in the early afternoon. China's Vice Premier He Lifeng was also seen arriving at the venue on video footage. China is facing a 12 August deadline to reach a durable tariff agreement with President Donald Trump's administration, after Beijing and Washington reached preliminary deals in May and June to end weeks of escalating tit-for-tat tariffs and a cut-off of rare earth minerals. Without an agreement, global supply chains could face renewed turmoil from US duties snapping back to triple-digit levels that would amount to a bilateral trade embargo. US trade representative Jamieson Greer said that he did not expect 'some kind of enormous breakthrough today' at the talks in Stockholm that he was attending. 'What I expect is continued monitoring and checking in on the implementation of our agreement thus far, making sure that key critical minerals are flowing between the parties and setting the groundwork for enhanced trade and balanced trade going forward,' he told CNBC. The Stockholm talks come hot on the heels of Trump's biggest trade deal yet with the European Union on Sunday for a 15% tariff on most EU goods exports to the United States, including autos. Trade analysts said that another 90-day extension of a tariff and export control truce struck in mid-May between China and the United States was likely. An extension would facilitate planning for a potential meeting between Trump and Chinese President Xi Jinping in late October or early November. The Financial Times reported on Monday that the US had paused curbs on tech exports to China to avoid disrupting trade talks with Beijing and support Trump's efforts to secure a meeting with Xi this year. Deeper issues Previous US-China trade talks in Geneva and London in May and June focused on bringing US and Chinese retaliatory tariffs down from triple-digit levels and restoring the flow of rare earth minerals halted by China and Nvidia's H20 AI chips and other goods halted by the United States. So far, the talks have not delved into broader economic issues. They include US complaints that China's state-led, export-driven model is flooding world markets with cheap goods, and Beijing's complaints that US national security export controls on tech goods seek to stunt Chinese growth. 'Geneva and London were really just about trying to get the relationship back on track so that they could, at some point, actually negotiate about the issues which animate the disagreement between the countries in the first place,' said Scott Kennedy, a China economics expert at the Center for Strategic and International Studies in Washington. Bessent has already flagged a deadline extension and has said he wants China to rebalance its economy away from exports to more domestic consumption - a decades-long goal for US policymakers. Analysts say the US-China negotiations are far more complex than those with other Asian countries and will require more time. China's grip on the global market for rare earth minerals and magnets, used in everything from military hardware to car windshield wiper motors, has proved to be an effective leverage point on US industries. In the background of the talks is speculation about a possible meeting between Trump and Xi in late October.
Yahoo
5 days ago
- Business
- Yahoo
Loro Piana Placed Under Judicial Oversight Due to Alleged Worker Exploitation
MILAN — A Milan Court has put Loro Piana into a judicial administration procedure concerning alleged worker exploitation in the Italian luxury brand's supply chain. Loro Piana in a statement on Monday evening said it 'acknowledges the notification received from the Court of Milan's Preventive Measure Section today regarding labor practices by undisclosed and unauthorized subcontractors of one of its suppliers.'The Italian luxury company stated that 'in breach of its legal and contractual obligations, the supplier did not inform Loro Piana of the existence of these subcontractors. Loro Piana was made aware of this situation on May 20, and, as a result, the maison terminated all relations with the concerned supplier in less than 24 hours.' Furthermore, 'Loro Piana firmly condemns any illegal practices and reaffirms its unwavering commitment to upholding human rights and compliance with all applicable regulations throughout its supply chain. Loro Piana is committed to ensuring that all its suppliers comply with the maison's highest quality and ethical standards in line with its Code of Conduct. In this perspective, Loro Piana has been constantly reviewing and will continue to strengthen its control and audit activities.'According to media reports, Loro Piana sells cashmere jackets with a price tag of 3,000 euros, which, through its subcontractors, would allegedly actually cost only 100 euros. The firm denied this claim. 'The reported cost figures are not representative of the amounts paid by Loro Piana to its supplier, nor do they consider the full value of all the elements, including, among others, raw materials and fabrics.'Looking ahead, Loro Piana concluded by stating that it 'expresses its full willingness to cooperate with the relevant authorities on this matter and intends to provide the utmost support for any further investigations.' More from WWD Rihanna's Son Riot Completes Dior Look With Edgy Dr. Martens Oxfords at 'Smurfs' Premiere Rihanna Makes 'Smurfs' Premiere a Fashionable Family Affair in Saint Laurent, With Sons RZA and Riot in Dior Louis Vuitton Notifies U.K. Customers of Data Breach Loro Piana is controlled by the LVMH Moët Hennessy Louis Vuitton and is helmed by chief executive officer Frédéric Arnault, who succeeded Damian Bertrand last month. Bertrand is now chairman of the brand and has moved to become deputy CEO of Louis is only the latest luxury brand to incur in such a probe. Dior, also part of LVMH, and the Giorgio Armani Group have also been investigated for allegedly using suppliers who subjected workers to poor conditions, including inadequate wages, and potentially misleading consumers about their commitment to ethical standards, labor practices and artisanal production. Both brands have seen the judicial administration procedures lifted after taking steps to improve their supply chain and labor practices. In February, a Milan court ordered the revocation of the judicial administration imposed since April last year on Giorgio Armani Operations, a unit of the namesake designer's fashion group, over the labor practices of its Chinese-owned subcontractors. At the time, the Armani Group said in a statement that the decision to revoke the judicial administration was made because the company has taken all the necessary corrective action and 'already had a structured and tested system of controls and protection of its supply chain.' The revocation came ahead of the one-year deadline initially expected, it pointed out. The statement underscored that the decision was also made because the court recognized the group's craftsmanship as Armani's suppliers 'are often to be identified as highly qualified artisans, especially regarding Italian production, characterized by the highest level of sophistication and quality.' Last year, judges also placed an Italian subsidiary of Dior, which produced handbags for the French brand, under the same form of special administration, again for lack of control over its supply chain. In May, the French fashion house was cleared of any wrongdoing and said it remains 'committed to upholding our values of transparency and respect throughout our supply chain. This further underscores the maison's steadfast and historic dedication to pursuing both rigorous Made in Italy products and the highest standards of ethics and excellence.' Alviero Martini was also investigated over alleged worker exploitation, and in May, a unit of Valentino specialized in bags was placed under judicial administration for a year by the Milan court after worker abuse was uncovered at subcontractors. Following the move, Valentino said it had intensified its supplier evaluation process across its supply chain in recent years and would cooperate with the relevant authorities to 'fully understand the circumstances that have led to the measures taken by the judiciary in this specific case.' Best of WWD The Biggest Legal Battles Shaping the Fashion Industry Today PETA Asks Lululemon About Slaughterhouse Practices China's Livestreaming Star Viya Fined $210 Million for Tax Evasion Solve the daily Crossword
Yahoo
5 days ago
- Business
- Yahoo
Australian Rare Earth Producer Braces to Take on Rival China With Help From Trump
Lynas Rare Earths reported a jump in fourth-quarter production and revenue, and sounded optimistic about benefiting from President Trump's efforts to loosen China's chokehold on critical minerals needed for cars, smartphones and missile systems. Earlier this month, the U.S. Defense Department agreed to invest in rival producer MP Materials in a deal that included a guaranteed price floor at nearly double recent rare-earth prices. Biden Sells Memoir for Roughly $10 Million, Less Than Obama and Clinton The West's Insatiable Demand for Missiles Is Boosting U.S. Weapons Makers Tesla Profit Falls, Hurt by Plunging EV Sales Why Amazon Wants an AI Bracelet That Records Everything You Say Home Prices Hit Record High in June, Dragging Down Sales Lynas Chief Executive Amanda Lacaze said Thursday that the unusual deal sent a clear message that the U.S. is determined to rebuild a rare-earth supply chain outside China, which currently refines around 90% of the world's rare earths. That should ease concerns among manufacturers about the availability of future supplies, and result in a much larger and more dynamic industry elsewhere in the world, Lacaze told analysts on a call. 'On balance, our view is that developing a vibrant outside-China industry will be good for everyone,' she said. 'But it will be best for us,' she added. Lynas is the largest producer of separated rare earths outside of China. Western companies have long complained that China uses its control over rare earths to suppress competition, sometimes flooding the market to drive out rivals and at other times imposing restrictive export policies that disrupt manufacturers. Lacaze's remarks followed Lynas's fourth-quarter production results, in which the Perth, Australia-based miner said rare-earth output rose 68% from the prior quarter. The company produced 3,212 metric tons of rare earth oxide in the three months ended June 30, including 2,080 tons of neodymium and praseodymium, up 38% from the previous quarter. Sales revenue rose by 38% to 170.2 million Australian dollars, around US$112 million. It is the first time Lynas has produced more than 2,000 tons of neodymium and praseodymium, used in permanent magnets for electric vehicles and consumer electronics, in a single quarter. The rise in output reflects recent investments in its plant, Lynas said, adding that it aims to stabilize production at higher levels while also ensuring output aligns with market demand. 'We continue to be very focused on how we deliver growth in what is an excellent market in which to be participating, and which we expect will continue to be a significant growth market,' said Lacaze. Lynas said it is experiencing a significant increase in demand from customers and new magnet manufacturing projects. 'We continue to sell pretty much everything that we produce,' Lacaze said. According to Lynas, its average sales price rose to the highest level since mid-2022. That reflects an ongoing focus on building strategic customer relationships and some pricing agreements independent to the market index, it said. Lynas also announced a memorandum of understanding with South Korean permanent-magnet maker JS Link to collaborate on a new magnet manufacturing facility in Malaysia. Shares in the company rose more than 3% by mid-afternoon in Sydney. Lynas recently began producing some heavy rare earths, the first time those critical minerals have been commercially produced outside China in decades. It began producing dysprosium in May and terbium in June. The company said it has received strong interest from customers for those products. 'Our heavy rare earth production is key to our competitive advantage,' said Lacaze. She said that the industry has been on 'a rollercoaster' in recent months as rare earths became a key battleground in the U.S.-China trade war. As U.S.-China tensions escalated in early April, Beijing said it would begin requiring licenses for the export of certain rare earths, including dysprosium and terbium. China's exports of rare-earth magnets last month increased nearly threefold from the previous month after the country lifted some export controls following a truce with the U.S. Lacaze said that it is unclear how the price floor in the Pentagon's deal with MP Materials will affect the industry's benchmark price index, but she believes a dynamic market should generally support higher prices for the critical minerals. Lynas, which is developing a rare-earth processing facility in Seadrift, Texas, continues to maintain a very positive relationship with the U.S. government, Lacaze said when asked whether the Australian company is now at a disadvantage to MP Materials. Under MP Materials's deal with the Pentagon, the U.S. government is committing to spend billions of dollars investing in that company and purchasing its output. The price floor protects the company if China fully lifts its restrictive export policies, which could tank global prices. A White House spokesman earlier said the deal marked 'a major step in rebuilding America's domestic rare earth industry.' Lynas is well positioned to sign new supply deals to take advantage of market strength following that agreement, Jefferies analyst Mitch Ryan said in a client note. 'We are today the only scale producer of light rare earth and heavy rare earth,' Lacaze said. 'And I think, as we have seen at times over the past decade in particular, having our assets in place as operational when the cycle turns—and we are looking at some very positive moves in terms of price right now—means that we can take full advantage of that upswing.' Write to Rhiannon Hoyle at The Secret to Getting Promoted Quickly at a New Job Lawmakers Subpoena JPMorgan and BofA Over IPO of Chinese Battery Giant Goldman and BNY Team Up to Tokenize Money-Market Funds NBCU Is Exploring Launching a Sports Cable Network Google Revenue Soars on AI Boom, and Investors Eye Spending Surge Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
