If You'd Invested $100 in MP Materials Stock 1 Year Ago, Here's How Much You'd Have Today

Rare-earth materials and rare-earth magnets are crucial to the modern economy, and China dominates the global supply of both. That statement serves as the starting point for understanding why a $100 investment in MP Materials (NYSE: MP) a year ago would be worth $329 as I write this. It also indicates where the stock could be headed next.According to the International Energy Agency (IEA), China in 2024 was responsible for 59% of the rare-earth materials mined, 91% of the refined materials, and 93% of the strongest type of rare-earth materials. China's position provides it with significant leverage in the ongoing trade conflict with the U.S.. With the need to secure a domestic supply of rare-earth materials, the U.S. Department of Defense (DOD) entered into a transformational agreement with MP Materials in the summer, involving $400 million worth of investment in stock, $150 million in loans, a $1 billion financing commitment from leading U.S. banks, and a 10-year price floor commitment from the DOD.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool