MP Materials Corp. (MP): “Not As Big As Everyone’s Trying To Make It,” Says Jim Cramer

We recently published Jim Cramer Discusses These 10 Stocks & AI-Led Disinflation. MP Materials Corp. (NYSE:MP) is one of the stocks Jim Cramer recently discussed.

MP Materials Corp. (NYSE:MP) is an American rare earth metals company. Trade tensions between the US and China, which have seen China use rare earth metals as leverage, have injected new life into its shares as they have gained 288% year-to-date. MP Materials Corp. (NYSE:MP)’s shares have gained 112% in July on the back of several catalysts, such as Pentagon and Apple investments. Here’s what Cramer said about the firm:

“MP’s not as big as everyone’s trying to make it out to be. But it’s just so, the Defense Department’s in there, Apple’s in there, they’re gonna get what, look I remember the days when everyone owned Moly. Molycorp. Because that was the predecessor. I remember when Lee Cooper called me and said listen. . .you’ve got to buy MP Materials because of the whole Moly thing. I said Moly lost billions. He goes yes, so did MP. And that’s what’s happening. We need more than just that strip. We need more than that part of California. But I’m sure that we’re gonna do it. It’s a different world. We’ve got such religion again.”

Cramer previously discussed MP Materials Corp. (NYSE:MP)’s partnership with the Pentagon in detail:

“This morning, MP Materials announced that the Defense Department’s taken a big stake in their company, which controls the largest rare earth mine in the country. The deal, which includes a $1 billion construction loan from a couple of banks along with a separate $150 million loan and a $400 million equity investment from the Defense Department, will ensure that MP can keep developing its Mountain Pass site and build a new rare earth magnet factory essential to our national security. It’s all about having a reliable source of rare earths in order to reduce our dependence on China…

Heavy machinery at work in a mining facility, excavating the earth for rare earth minerals.

Now, suddenly, we know the strategic value of these rare earths… The Defense Department’s assured us that the United States will be in a better position in the future by putting a price for the Mountain Pass site’s key materials. You know what? It’s an ingenious deal because it would simply cost too much for MP to refine all the rare earth minerals that our country needs by itself. We’re finally getting serious about a national Achilles heel, and it’s not just rare earths. Earlier this week, President Trump announced a 50% tariff on copper.”

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Disclosure: None. This article is originally published at Insider Monkey.