There's little doubt that China currently dominates the rare-earth metal industry. But if ever you did have doubts, here's a sobering figure: China accounted for about 70% of their extraction in 2024.
That chokehold has made U.S. companies like MP Materials (MP -3.90%) a true gem in America's race to regain control over its rare-metal supply chain. And while this industrials stock has already had an explosive run in 2025, new geopolitical tensions are giving it even more momentum.
U.S.-China tensions are giving MP a huge lift
For months now, the U.S. and China have been tussling over trade. Between tariffs and retaliatory tariffs, neither country seems willing to give the other an inch -- especially not when it comes to strategic minerals like rare-earth metals.
In early October, China threw another punch when it announced a restriction on rare-earth metal exports to the U.S. Although this isn't the first time China has threatened export controls on its metals, it sent a clear jolt through Washington.
Enter MP Materials. MP currently operates one of the only rare-earth metal mines and processing facilities in the U.S. Its Mountain Pass mine in California produces mineral concentrates that are used to make powerful magnets, which are used in electric vehicles, consumer electronics, and drones.
A detailed view of electrolysis cells at MP Materials' Independence facility, highlighting the advanced technology used in rare-earth metal reduction. Image source: MP Materials.
The White House has already taken an interest in MP. Back in July, the Department of Defense took a $400 million stake in MP, becoming its largest shareholder. About a week later, MP also announced a $500 million long-term agreement with tech giant Apple.
All this good news has sent the stock soaring. Already, it has vaulted about 480% on the year, with a 42% gain just since the beginning of October.
Regardless of how this particular China-U.S. tussle plays out, MP is a stock to watch during President Donald Trump's second term. Few mining companies are as well-positioned to gain from geopolitical risks as this one.
