MP Materials Corp. (NYSE:MP) shares are trading higher on Monday amid continued strength after China’s Commerce Ministry announced last week that foreign suppliers must obtain approval to export certain products containing rare-earth materials.
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What To Know: According to CNBC, China tightened export controls on rare earths and related technologies while barring its citizens from participating in unauthorized overseas mining. The Ministry of Commerce said foreign entities must now obtain a license to export any products containing more than 0.1% domestically sourced rare earths or made using Chinese extraction, refining, magnet-making or recycling technology.
The new measures, which take effect Dec. 1, are aimed at preventing the "misuse" of rare-earth minerals in military and other sensitive sectors. Companies linked to foreign militaries or placed on export-control lists will be denied permits, while applications for items that could be used in weaponry or terrorism will also be rejected.
The restrictions mark a "major upgrade for rare earth export control," expanding oversight from raw materials to intellectual property and technologies. Analysts said the move could deepen global reliance on Chinese know-how and strengthen Beijing's leverage in trade negotiations ahead of a potential meeting between President Donald Trump and President Xi Jinping later this month.
Rare earth stocks are trading higher as investors expect China's new export rules to tighten global supply. The restrictions could make it harder for other countries to access key materials used in technology and defense, boosting demand for U.S. producers like MP Materials. Traders view the policy as a positive catalyst for companies positioned to supply these materials outside of China.
Additionally, a social media post from Trump over the weekend appeared to ease trade concerns, with Trump stating, “Don’t worry about China, it will all be fine!”
MP Price Action: MP Materials shares closed Monday up 21.32% at $95.06, according to data from Benzinga Pro.
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