2 Supercharged Trends That Could Send MP Materials Stock to New Heights

Last year, the U.S. government made a historic investment in MP Materials (NYSE: MP) by taking a stake in the mining company as the nation rebuilds its stockpile of crucial materials. The stock surged to $100 in the months following the news but has since fallen 42% from its 52-week high. However, there are two supercharged trends that could send the stock higher.Essential minerals are fundamental building blocks of modern technology, defense systems, and clean-energy products. Rare-earth elements are crucial for magnets used in radar and defense technologies, while electric vehicles use a significant amount of lithium, cobalt, and nickel.What puts the U.S. in a precarious position is China's dominance of the supply chain for these minerals. According to research from The Motley Fool, China controls roughly 70% of rare-earth extraction and 90% of its processing. The need to rebuild domestic supply chains of these minerals is the first trend that could power MP Materials' stock higher.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool