Rare Earth Prices Surge as MP Materials Cuts China Shipments

Rare earth element prices have climbed to a two-year high following MP Materials' decision to halt exports to China. The U.S. miner's MOVE disrupts a supply chain where China commands 90% of refining capacity and 70% of mined output for these critical materials.

The geopolitical stakes are clear. China has weaponized its rare earth dominance in past trade negotiations, prompting the U.S. to acquire a $400 million stake in MP Materials. This strategic investment underscores Washington's push for domestic supply chain resilience.

MP's suspended shipments directly impact production of high-strength magnets used in EVs, wind turbines, and defense systems. The market reaction highlights the fragility of global tech manufacturing when geopolitical tensions intersect with concentrated resource control.