2 Supercharged Trends That Could Send MP Materials Stock to New Heights
MP Materials is a top domestic miner and processor of crucial minerals and stands to benefit from two powerful tailwinds.
2 Supercharged Trends That Could Send MP Materials Stock to New Heights
Overview
Last year, the U.S. government made a historic investment in MP Materials (NYSE: MP) by taking a stake in the mining company as the nation rebuilds its stockpile of crucial materials. The stock surged to $100 in the months following the news but has since fallen 42% from its 52-week high. However, there are two supercharged trends that could send the stock higher.
Essential minerals are fundamental building blocks of modern technology, defense systems, and clean-energy products. Rare-earth elements are crucial for magnets used in radar and defense technologies, while electric vehicles use a significant amount of lithium, cobalt, and nickel.
Details
What puts the U.S. in a precarious position is China's dominance of the supply chain for these minerals. According to research from The Motley Fool, China controls roughly 70% of rare-earth extraction and 90% of its processing. The need to rebuild domestic supply chains of these minerals is the first trend that could power MP Materials' stock higher.
Source
Originally published at www.fool.com.
