Jim Cramer Calls MP Materials' and Defense Department's Deal "Ingenious"

MP Materials Corp. (NYSE:MP) is one of the stocks Jim Cramer shared his thoughts on. The company was mentioned by Mad Money’s host during the episode, and here’s what he had to say:

“This morning, MP Materials announced that the Defense Department’s taken a big stake in their company, which controls the largest rare earth mine in the country. The deal, which includes a $1 billion construction loan from a couple of banks along with a separate $150 million loan and a $400 million equity investment from the Defense Department, will ensure that MP can keep developing its Mountain Pass site and build a new rare earth magnet factory essential to our national security. It’s all about having a reliable source of rare earths in order to reduce our dependence on China…

Now, suddenly, we know the strategic value of these rare earths… The Defense Department’s assured us that the United States will be in a better position in the future by putting a price for the Mountain Pass site’s key materials. You know what? It’s an ingenious deal because it would simply cost too much for MP to refine all the rare earth minerals that our country needs by itself. We’re finally getting serious about a national Achilles heel, and it’s not just rare earths. Earlier this week, President Trump announced a 50% tariff on copper.”

MP Materials (NYSE:MP) produces rare earth materials and magnetic precursor products. The company operates a rare earth mine and processing facility and supports the production of advanced magnetics.

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Disclosure: None. This article is originally published at Insider Monkey.