The Roller Coaster Ride of MP Materials On Failed U.S. Administrations Over the Past 15 Years

Dateline June 12, 2025

MP Materials Corp. (NYSE:MP) stock rose 14% following a Bloomberg report that the Trump administration is developing a plan to use Cold War-era powers to prioritize and fund rare earth projects deemed critical to national security.

Officials are reportedly discussing utilizing the Defense Production Act to provide financing, loans, and other support for rare earth element-related projects, including mining, processing, and downstream technologies. The initiative aims to bolster the United States’ capability to build a domestic supply chain for these strategic materials.

MP Materials, as the sole domestic producer of rare earths in the US, would likely be a prime beneficiary of this initiative. According to the report, Deputy Defense Secretary Steve Feinberg is working to secure funding for the Nevada-based company, which has previously received millions in funding from the Defense Department.

The potential government support comes amid growing concerns about China’s dominance in the rare earths market and the strategic importance of these materials for defense applications and green technologies.

Dateline June 11, 2025

MP Materials (NYSE:MP) -8.2% and USA Rare Earth (NASDAQ:USAR) -6.8% in early trading Wednesday, surrendering a week's worth of gains, after President Trump said the U.S. will get magnets and rare earth minerals from China under a new trade deal framework and that tariffs on Chinese goods will go to 55%.

"Full magnets, and any necessary rare earths, will be supplied, up front, by China. Likewise, we will provide to China what was agreed to, including Chinese students using our colleges and universities (which has always been good with me!). We are getting a total of 55% tariffs; China is getting 10%. Relationship is excellent!" Trump said on a Truth Social post.

Dateline June 9, 2025

MP Materials (NYSE:MP) +2.1% pre-market Monday as rare earth elements become a key factor when negotiators from the U.S. and China meet in London today to ease trade tensions.

The focus of the trade conflict between the world's two largest economies has shifted from tariffs to curbs on critical products and materials, as the U.S. wants China to ease exports of rare earth materials and magnets containing them while China seeks a removal of restrictions on the sale of jet engines and technology products.

Failed Action for 15 Years Has Led to Kowtowing to China

I refer readers to my May 8, 2025 Substack article entitled “Fifteen Years Later: My Warnings on China’s Rare Earth Dominance Are Now a Frontline Issue in U.S. National Security.” In it I go back to 2010 where I refer readers to a 2010 article which I called a “wake-up call” for non-Chinese mining companies, governments, and global manufacturers to take proactive steps to escape China’s growing chokehold on materials critical to modern technology.

No action was taken by the Obama administration on and real effort to sever the need for rare earths from China.

I followed up that article with another one in 2016, but again, no action was taken by the Obama administration.

I was more blunt, in my June 2019 article, shifting the conversation directly to national security. It fell on deaf ears in the Trump 1 administration.

Now in 2025, rare earths have become a major topic of negotiation between the U.S. and China during the Trump 2 administration, and it appears numerous tariff concessions had to be made by the U.S.

And I’m not even taking about The Clinton administration failures and ho Richard Nixon’s brother convinced U.S. companies to transfer all their rare earth processing capabilities to China so the U.S. could reduce its air pollution caused by rare earth conversion of ore to metal and magnets.

For those of you who want more detailed data, you can view the TOC of my report at The Information Network entitled Rare Earths Elements in High-Tech Industries: Market Analysis and Forecasts Amid China’s Trade Embargo.

More on MP Materials

In my May 8, 2025 Substack article, MP Materials was my Top Key Investment Opportunity. Since the article, MP is up 33%. Chart 1 shows how it compares to just 11% for the S&P Technology Sector (^IXT).

My suggestion, keep reading my articles and take my advice on specific stocks. I’m sending this to all readers, free and paid, to realize the value of my work and what you miss by having a free subscription and a paywall to the really good stuff.