Why Shares in Rare Earth Company MP Materials Crashed Today

Shares in rare earth materials and magnetics company MP Materials (NYSE: MP) crashed by more than 10% by late afternoon today. The decline comes after officials from the U.S. and China announced that the two countries had signed a new trade deal.Rare earths are an integral part of the new deal, with U.S. Commerce Secretary Howard Lutnick telling Bloomberg, "They're going to deliver rare earths to us," and when China does this, the U.S. will "take down our countermeasures." As such, rare earths aren't a byproduct of the trade deal or even a negotiating point; they are a conditional part of it.That's good news for U.S. industry but not necessarily for MP Materials, a company that's aiming to be "America's rare earth magnetics champion." Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool