MP Materials Stock Rises as China Bans Key Mineral Exports

MP Materials Corp. (NYSE:MP) stock price saw an increase of over 12% in pre-market trading on Tuesday, following China's announcement that it would ban the export of certain minerals to the U.S. on national security grounds. The restricted minerals include gallium, germanium, and antimony, which are known for their potential military applications.

This directive from the Chinese Ministry of Commerce is seen as a response to what it perceives as a threat to national security and forms part of a broader regulation of dual-use products that have both civilian and military applications. The ban is effective immediately and also calls for a stricter review process for the end use of graphite products exported to the U.S.

The ministry's statement took a clear stance on the issue, stating, "In principle, the export of gallium, germanium, antimony, and super-hard materials to the U.S. will not be permitted." This move follows recent measures by the U.S. government targeting China's semiconductor industry.

The impact of this export ban is reflected in the stock price of MP Materials, which is involved in the production of materials that could be affected by China's new restrictions.