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- MP Materials cuts off US rare earth to China amid ongoing tariff battle (foxbusiness.com)
MP Materials, the sole owner of a US rare earth mine, announced Thursday it will halt shipments of rare earth concentrate to China. This move comes as a direct response to China’s retaliatory tariffs and export controls on rare earth materials.
In a statement, the company expressed its preparedness for this situation, describing it as part of a long-term strategy designed to withstand short-term challenges. They further emphasized that selling these crucial materials under a 125% tariff is neither commercially viable nor in the best interest of the United States.
MP Materials highlighted that over 70% of its revenue comes from the sale of rare earth concentrate, with nearly half now being refined in California and sold to markets outside of China. This concentrate, sourced from their California mine, contains 17 metals crucial for manufacturing magnets used in electric vehicles, cell phones, and various other electronics.
The company noted it has invested almost $1 billion to rebuild the rare earth supply chain within the US. Currently, their California refinery processes approximately half of their production, with the majority of the refined material being sold to non-Chinese markets, including Japan, South Korea, and the United States.
This decision follows President Trump’s recent order to investigate potential tariffs on all critical mineral imports. MP Materials stated they will maintain communication with federal officials and expressed encouragement by the government’s commitment to supporting American industry. The company plans to release further details during its quarterly earnings report on May 8.
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- MP Materials cuts off US rare earth to China amid ongoing tariff battle (foxbusiness.com)