$MP

MP Materials is reviving the U.S. rare earth supply chain with its Independence factory in Texas, producing automotive-grade magnets for EVs. General Motors is partnering with MP Materials to source these magnets domestically, aiming to reduce dependency on China, which controls 49% of global supply. The magnets are crucial for EV performance, and GM plans to use them in all North American EVs, though cost and timeline remain uncertain.

MP Materials plans to supply GM with US-made neodymium magnets for EVs from its Texas plant. GM aims to use these magnets in all North American EVs, though timing is unspecified. The facility produces up to 1M magnets daily, all for GM. In 2021, GM agreed to buy rare-earth products from this plant. MP Materials also has a $500M order from Apple for recycled magnets.

China's restrictions on rare earth exports, including to Tesla (TSLA), highlight its dominance in the supply chain. MP Materials (MP) is expanding its U.S. operations, backed by government investments and contracts with Apple (AAPL) and General Motors (GM). MP's revenue surged 89% YoY in Q2, with plans to increase magnet production tenfold by 2028.

Non-Chinese rare earth stocks fell after a U.S.-China trade truce extension, despite ongoing export controls by China. MP Materials and USA Rare Earth dropped, but both show long-term gains. Lynas Rare Earths reported strong revenue growth, and ETFs tracking the sector are oversold. A U.S. defense ban on Chinese rare earths in 2027 may drive demand for non-Chinese producers.

MP Materials (NYSE:MP) is nearing full production of NdPr oxide and expects to deliver magnets to General Motors (NYSE:GM) by year-end. Q2 sales volumes exceeded 1,000 tons, up 127% YoY, with adjusted EBITDA turning positive at $28.5M. GM's long-term supply deal with MP includes commercial shipments starting Q4 2026.

The U.S. secured a deal with Denmark and Greenland to control the security perimeter around Greenland's rare earth deposits. Critical Metals, Greenland Energy, and Greenland Mines stocks surged. The move aims to reduce dependence on China for rare earths, which are vital for defense and advanced manufacturing. The U.S. is investing in critical mineral supply chains to ensure security and reduce vulnerability to supply disruptions.

Chinese president Xi Jinping's White House visit focuses on rare-earth minerals, crucial for tech and military applications. US seeks to reduce reliance on China, which controls supply. Recent data shows a decline in Chinese rare-earth shipments to the US. A US-Greenland deal sparked a rally in US rare-earth stocks, including Critical Metals (+43%), USA Rare Earth (+9%), MP Materials (+6%), and Energy Fuels (+5%). The outcome of the Trump-Xi summit could impact these stocks.

Priority Technology (PRTH) surged 33% to $7.76 after a $1.6B go-private deal at $8.05/share. Critical Metals (CRML) rallied 37% to $9.20 on Greenland project focus. New Era Energy (NUAI) jumped 31% to $7.67 on a 20-year power deal. Vista Gold (VGZ) rose 18% to $2.66 after a $427M acquisition. Syntec Optics (OPTX) climbed 19% to $8.08 on a major Space Force order. Telix (TLX) fell 12% to A$15.76 after a $1.65B acquisition.

MP Materials is producing rare-earth magnets in Fort Worth, Texas, using domestically mined materials. The company's Independence facility will supply magnets to General Motors for electric vehicles. MP Materials has received federal contracts and incentives, and plans to expand operations. The company aims to reduce U.S. dependence on foreign supply chains for critical minerals.

US rare-earth mining stocks rose on Monday, with Critical Metals up 37%, following a US-Denmark agreement on Greenland. The deal is seen as a step toward reducing US dependence on Chinese rare-earth supplies, aligning with Trump's focus on securing domestic supply chains. Key movers include USA Rare Earth, MP Materials, TMC The Metals Company, and Ramaco Resources.