MP Materials halts exports to China
A US producer of rare earth metals stopped shipments to China after Beijing placed export controls on similar materials crucial for defense and technology manufacturing.
MP Materials Corp., which operates a mine and processing facility in California, said Thursday it would halt sales of its rare earth elements to China as part of an effort to “reindustrialize” the minerals supply chain in the US.
The move follows Chinese restrictions announced earlier this month that are expected to have broad impacts on companies making optical lasers, radar devices and high-powered magnets used in wind turbines, jet engine coatings and other advanced technologies. China is the world’s dominant supplier of rare earths, while the US produces and refines little of its own.
“Selling our valuable critical materials under 125% tariffs is neither commercially rational nor aligned with America’s national interest,” the company said in a statement. “Manufacturers across critical industries have urgently reached out in search of a secure, resilient source of materials and magnets. We are uniquely positioned to answer that call.”
Shares of MP Materials dropped as much as 10% in midday trading in New York.
(By Jacob Lorinc)
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4 Comments
Kerry Thom
Hope your strategy out manoeuvres China
Hommie
Soon US will not able to make new military weapons like F35s without Chinese rare earth.
Steve
Authoritarian regime of PuTrump or cheaper products from authoritarian regime of China.
Maybe it is a choice of the cheapest goods.
Mike Harneau
Guaranteed this is no loss to China. They have the ability to mine whatever they need, but the complete halt of 7 rare earth exports to USA will cause definite issues in America. The tit for tat war will not end well for America if it continues.