MP Materials, a key player in the rare-earth industry. They passively extract neodymium-praseodymium at the Mountain Pass mine in California, the only rare-earth mine currently in operation in the United States. With trade tensions with China at their highest ever, rare-earth metals prices are skyrocketing. In actual fact, this past October the price of neodymium-praseodymium reached an 18-month high. This rise isn’t just a fluke, it’s indicative of a larger trend that goes beyond the minerals that are currently under Chinese export restrictions.
And the Mountain Pass mine in California is critical for tapping into our domestic sources of neodymium-praseodymium. These parts are critical in the manufacturing of electric vehicles (EVs). As the demand for EVs increases, so does the demand for these rare-earth metals. With the demand to secure resources at home accelerating, prices are soaring. This strategic change is part of a larger effort to lessen our dependence on foreign suppliers – in particular, suppliers in China.
In reaction to current trade hostilities, the United States is also moving pre-emptively to ensure it doesn’t lose its own precious rare-earth holdings. This tactical step will help strengthen our national security by quickly enabling critical materials to stay under U.S. control. Following China’s recent export restrictions on gallium and germanium, the impact on the continuity of supply for key global supply chains has quickly become a hot topic.
To ensure a stable supply of rare-earth metals, MP Materials operates the Mountain Pass mine. That is a tremendous supply, enabling the emerging, technology- and renewable-energy intensive industries that power this new economy. Prices have skyrocketed, underlining the tremendous demand for these metals. On top of this, their market dynamics are being brutally warped by geopolitical factors.
The situation has sparked conversations about the future of rare-earth metal extraction and its impact on industries reliant on these materials. Relatedly, as prices keep accelerating, a wide range of stakeholders are intently focused on evolving dynamics in U.S. domestic production and foreign trade policy.