MP Materials, Other Rare Earth Stocks Soar. How Trump and China Are Driving the Rally.

An aerial view of MP Materials’ Mountain Pass. The company’s stock has rallied after China tightened export controls for rare-earth exports. (Courtesy MP Materials)

Key Points

• MP Materials stock extends gains following China’s tightened rare-earth export controls.
• China’s Commerce Ministry requires government approval for exporting certain rare-earth products, dominating 85% of global refining capacity.
• President Donald Trump’s statement on U.S. retaliation against China’s export controls fueled the rally in rare-earth mining stocks.

MP Materials stock and shares of other rare-earth miners jumped again Monday, extending last week’s rally after China tightened export controls on the minerals.

MP Materials stock rose 22% to $95.57. Shares traded as high as $98.97, a 52-week high. Shares jumped 8.7% on Friday, closing at a record high of $78.34.

Smaller rare-earth companies USA Rare Earth and Ramaco Resources rose 22.3% and 10.5%, respectively, after closing higher on Friday. Albemarle , a lithium miner, rose 9.8%.

The moves were largely prompted by President Donald Trump saying Friday that the U.S. would retaliate against China over export controls.

On Thursday, China’s Commerce Ministry said foreign supplies must secure government approval to export certain products containing rare earth minerals. It dominates the industry with an estimated 85% of global rare earth refining capacity.

Lithium is a key component in lithium-ion batteries used in electric vehicles. China is also the world’s largest producer of those.

MP is the largest rare-earth producer in the Western Hemisphere, making neodymium and praseodymium oxides, key components of magnets that end up in high-tech products, including EVs and F-35 fighter jets.

China moved to restrict exports of rare earths earlier in 2025, amid rising trade tensions with the U.S., prompting President Donald Trump to step in to ensure the supply of the minerals. The Defense Department invested in MP Materials to help ensure security of supply in the years to come.

Through midday trading, shares of MP Materials have risen more than 500% in 2025, putting them on pace for their best year ever, according to Dow Jones Market Data.

The president eased trade fears a little on Sunday, posting on Truth Social: “Don’t worry about China, it will be fine,” adding that President Xi “doesn’t want Depression for his country, and neither do I.”

His words appeared to help stocks. The S&P 500 and Dow Jones Industrial Average rose 1.6% and 1.3%, respectively, on Monday. His comments didn’t stop the rare-earth rally from continuing early Monday.

Investors believe that, regardless of the outcome between the U.S. and China, America needs to produce more rare earth and battery materials domestically.

That’s more business for rare earth companies and it comes faster than expected. Cannacord analyst George Gianarikas estimated that the U.S. uses about 50,000 metric tons of rare earth magnets a year. MP plans to have the capacity to manufacture about 10,000 metric tons of rare earth magnets by the end of the decade.

Those numbers give investors some idea of the room the domestic rare earth sector has to grow.

Write to Elsa Ohlen at elsa.ohlen@barrons.com