U.S.-backed MP Materials reports first profitable quarter as Washington bolsters domestic critical mineral production.
MP Materials, the sole large-scale U.S. rare-earth miner, has seen its stock decline 42% from its 52-week high of $110 despite government backing. The drop follows a surge last year after securing long-term purchase commitments and price floors from the U.S. government to reduce reliance on China for critical minerals.
The company operates North America’s only integrated rare-earth mining and processing site in California, producing purified oxides and neodymium-praseodymium magnets. MP Materials turned profitable in Q1, marking a milestone in the U.S. effort to rebuild its critical mineral supply chain amid ongoing trade tensions.
Shares remain volatile as investors weigh the long-term impact of government support against broader market conditions and commodity price fluctuations.