TMC The Metals Company vs. MP Materials: 1 of These Industrial Stocks Is a Far Better Bet Right Now
When it comes to building a business around rare-earth metals, one of these companies is much further along.
Overview
Rare-earth metals are in short supply, and most of that supply is controlled by China. Because of the vital role these metals play in the technology sector, companies like MP Materials (NYSE: MP) and TMC The Metals Company (NASDAQ: TMC) are seeking to capitalize on the unusual supply and-demand dynamics and build rare-earth metals businesses. For most investors, MP Materials will be the safer bet. Here's why.
China has repeatedly shown its willingness to use access to rare-earth metals as a geopolitical bargaining chip. Supply concerns have led companies that you might not expect to warn of production delays, for example, automakers. However, rare-earth metals play a vital role in everything from your cellphone to missile defense systems. Countries don't want to be beholden to China for their self-defense needs.
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Originally published at www.fool.com.