MP Materials Halts Rare Earths Shipment to China Amid Tariff War

MP Materials, the owner of the only U.S. rare earths mine, stopped shipping minerals to China after boosted tariffs. This decision impacts revenue as MP has relied on China for processing. The company is ramping up domestic production and is in contact with U.S. officials to enhance processing capacity.

MP Materials, responsible for the only rare earths mine in the United States, announced it has ceased shipping its critical minerals to China. This action follows China's decision to increase import tariffs to a staggering 125% as retaliation against U.S. levies, sending a ripple effect that saw MP Materials' shares drop nearly 5%.

By halting shipments to China, a significant revenue stream has been interrupted for MP Materials, which has historically relied on its Chinese partners for processing the minerals. These rare earths are vital for modern technology, powering magnets used in electric vehicles and electronics. Despite China's supremacy in production, U.S. companies are working to elevate domestic capacity.

Highlighting the economic strain from the tariffs, MP stated that selling under such conditions is not viable economically or in the nation's interest. The company, while producing rare earths concentrate at its California mine, has shifted focus to refining in the U.S. and has been in communication with federal leaders to discuss enhancing the industry domestically. Meanwhile, the company also advances its Texas-based magnet facility.

(With inputs from agencies.)