$MP

The Trump administration has invested $26.7B in 39 U.S. companies, including Intel, MP Materials, and IBM, through equity and quasi-equity deals. The investments span sectors like semiconductors, rare earth minerals, quantum computing, steel, and nuclear energy. Critics question whether this constitutes socialism, while the administration frames it as strategic economic policy. The government is now the largest shareholder in Intel, with an $8.9B investment.

Jim Cramer expressed optimism about MP Materials (NYSE: MP) during Mad Money, citing its critical materials and government support, but warned of a long timeline for results. MP reported Q2 revenue of $126.1M and a net loss of $20.3M, with NdPr production and sales increasing. The company is investing heavily in expansion, with targets for 2026 and beyond, but faces challenges in cash generation and approval processes.

The Pentagon's demand for rare earth magnets is expected to rise to 10,000 tonnes annually by 2030, nearly half of today's non-Chinese production. Companies like MP Materials (NYSE: MP), Energy Fuels (NYSE-A: UUUU), and USA Rare Earth (Nasdaq: USAR) are expanding supply chains with government support, aiming to reduce reliance on China, which controls 91% of global refining.

USA Rare Earth (USAR) shares initially rose 4% to $18.35 after reports that Chinese suppliers halted rare earth shipments to U.S. customers, but then retreated to $17.70. The company completed a merger with Serra Verde, gaining scaled heavy rare earth production. Chinese President Xi Jinping's visit to Washington on September 24 could impact rare earth supplies and related stocks, including USAR, MP Materials (MP), and Critical Metals (CRML).

USA Rare Earth (USAR), MP Materials (MP), and Critical Metals (CRML) saw stock gains in pre-market trading after reports that some Chinese suppliers are refusing to ship rare earths to U.S. customers. The issue arises ahead of Chinese President Xi Jinping's visit, with rare-earth supplies expected to be discussed. China dominates the global rare-earth supply chain, and tensions may strengthen the case for domestic producers. USAR completed the acquisition of Serra Verde Group, while MP is expand

Bloomberg Intelligence analyst Wayne Sanders noted that laser weapons' size has shrunk, but they rely on minerals China has restricted. RTX (Raytheon) reported Q2 revenue of $8.27B, up 18%, with a $289B backlog. CEO Chris Calio highlighted supply chain risks. Lockheed Martin (LMT) and Boeing (BA) also mentioned rare-earth mineral risks. RTX is up 30% over a year, while MP Materials, a rare-earth supplier, is down 19%.

Ukraine's drone warfare is consuming 4% of global germanium demand, according to BMO analyst George Heppel. China controls much of the supply, creating potential shortages. MP Materials, Neo Performance Materials, Energy Fuels, Rio Tinto, Alcoa, Teck Resources, and Ivanhoe Mines are mentioned as companies with exposure to critical minerals.

MP Materials' stock rose 32.3% in August, driven by strong Q2 earnings and strategic importance in rare-earth materials. The company reported 41% YoY increase in NdPr production and $17.6M in price protection income. Management confirmed progress on its '10X' facility and existing contracts with GM and Apple. The U.S. government's support and trade tensions highlight its strategic role.

BMO Capital Markets highlighted opportunities in rare earth and critical mineral supply chains, with price targets for several companies. MP Materials (MP) targets US$75, Neo (NEO) US$60, Energy Fuels (UUUU) US$18, Rio Tinto (RIO) 8,500 pence, Alcoa (AA) US$55, and Ivanhoe Mines (IVN) US$16. Current share prices and consensus targets vary.

Drones in the Russia-Ukraine war are driving demand for germanium, gallium, and rare earths, with China dominating supply. BMO estimates 15M drones deployed in 2024, with $150B committed to drone/counter-drone tech. Teck Resources, Rio Tinto, Neo Performance, MP Materials, and Aclara Resources are among companies involved in critical mineral production.