China rare earth curbs lift shares in U.S. producer MP Materials

Bioxytran

05/07/2023 16:16

By Chibuike Oguh
       NEW YORK, July 5 (Reuters) - Shares in U.S. rare earth
materials firm MP Materials Corp  MP.N  surged 8% on Wednesday
following China's announcement of restrictions on exports of
some gallium and germanium products - metals used in
semiconductors and electric vehicles.
    China's commerce ministry said on Monday the curbs would
take effect from Aug. 1, saying the step was aimed at protecting
national security interests.
    The restrictions are likely to boost demand for rare earth
material producers outside of China, which accounts for nearly
two-thirds of world mine production.
    Las Vegas-based MP Materials mines rare earth oxides at the
Mountain Pass mine in California although it still ships them to
China for final processing. 
    Its stock was on track for its biggest one-day percentage
gain in more than four months, recently trading at $24.96 on the
session.

 (Reporting by Chibuike Oguh
Editing by Helen Popper)
 ((chibuike.oguh@thomsonreuters.com))