Why MP Materials Corp. (MP) Skyrocketed Today

We recently published a list of These 10 Stocks Are On Fire Right Now. In this article, we are going to take a look at where MP Materials Corp. (NYSE:MP) stands against other Wednesday’s best-performing stocks.

MP Materials rallied for a second straight day on Wednesday, jumping 11.73 percent as investors gobbled up shares in the company on optimism that it would benefit from China’s rare earth export restrictions.

It can be learned that Beijing suspended exports across a wide range of critical minerals last month, disrupting production of industries such as automakers, semiconductors, and aerospace manufacturers around the world that are heavily reliant on such materials.

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

However, MP Materials Corp. (NYSE:MP)—the only rare earth minerals producer based in the US—stands to benefit from China’s restrictions on expectations that companies would set their sights on non-Chinese producers to supply needed elements.

MP Materials Corp. (NYSE:MP) used to heavily rely on its partners in China for refining rare earth elements, until withdrawing shipments following 125-percent retaliatory tariffs slapped on US goods.

Additionally, MP Materials Corp. (NYSE:MP) said that its withdrawal was also aligned with the Trump administration’s goal to bring back and boost manufacturing in the US.

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