MP Materials Stock: Bull vs. Bear on This Top Rare Earth Bet
The company has a bright future based on current trends and execution of its business plan, but significant risks remain.
Overview
Investing can be complicated, and that's definitely the case with rare-earth stocks like MP Materials (NYSE: MP). Buying this stock requires a firm view of future geopolitical affairs. Here's why.
The ongoing trading friction between the U.S. and China isn't the only argument for buying MP Materials, but it is the critical one. Indeed, the company's whole business model relies on it.
Details
MP Materials operates a vertically integrated mine-to-magnet business model, whereby it sources rare-earth materials from its Mountain Pass mine in California as well as other non-Chinese sources, refine them, convert them into metal, and make magnets critical to the function of myriad defense and consumer products. These activities will be scaled significantly in the future.
Source
Originally published at www.fool.com.
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