U.S. Government-Backed MP Materials Stock Is Down 42% From Its 52-Week High. Is It Time to Buy the Dip?
The company entered into a landmark deal with the U.S. government last year.
U.S. Government-Backed MP Materials Stock Is Down 42% From Its 52-Week High. Is It Time to Buy the Dip?
Overview
In recent years, trade tensions have revealed the U.S.'s heavy reliance on China for rare-earth elements and other critical materials used in advanced magnets, which are central to much of today's technology. The United States is taking drastic action to rebuild its supply chain for critical minerals, including taking an ownership stake in U.S.-based MP Materials (NYSE: MP).
MP Materials' stock surged last year in response to its deal with the U.S., which included price floors and long-term purchase commitments for its domestically produced magnets. However, the stock has since fallen 42% from its 52-week high price. Here's why investors may want to consider buying the dip in this rare-earth mining stock.
Details
When the U.S. began to rebuild its critical-mineral mining and processing supply chain, MP Materials emerged as a key player in achieving this goal. That's because the company operates North America's only large-scale rare-earth mining and processing site located in Mountain Pass, California.
Source
Originally published at www.fool.com.
