Key Moments:
- MP Materials shares closed 7.7% higher at $27.69 on Monday and advanced further to $28.27 on Tuesday.
- The stock achieved five-day gains of over 20%.
- US and Chinese officials launched trade talks focusing on rare-earth export restrictions.
Rally Continues as Trade Dialogue Advances
Shares of MP Materials continued advancing as Tuesday markets opened, building an additional 2.1% on Monday’s 7.7% surge and rising to $28.27. In total, the share price has climbed more than 20% over the past five days, while its performance since hitting a four-month low of $18.77 on May 27th has improved by approximately 50%.
Today’s positive momentum follows the kickoff of trade negotiations between the United States and China. The commerce of Rare-earth materials has reportedly emerged as a central issue.
Focus on Rare Earths in US-China Discussions
Officials from both countries reportedly convened Monday in London to address trade and technology issues, placing particular emphasis on the rare-earth exports. These materials play a critical role in manufacturing everything from electric vehicles to high-end consumer electronics like smartphones and laptops.
Earlier tensions in the trade relationship saw China instituting controls on the export of certain raw materials to the United States. As part of the current discussions, US negotiators have made it a priority to push for the removal of these restrictions. President Trump recently commented that reaching a deal with President Xi Jinping remains difficult.
The broader rare-earth sector, including firms like MP Materials and USA Rare Earth, has benefited from US policy shifts. President Trump has emphasized the strategic importance of domestically producing and stockpiling rare-earth materials to reduce dependence on Chinese supply and bolster national security initiatives.
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