MP Materials (MP) Drops 8.8% as Rival Gets Higher Funding From Govt

We recently published 10 Big Names Stumbling Hard. MP Materials Corp. (NYSE:MP) was one of the worst performers on Monday.

MP Materials saw its share prices decline by 8.83 percent on Monday to close at $63.44 apiece as investors unloaded portfolios amid another rare earth company’s emergence as a significant competitor after securing a higher billion-dollar funding from the US government.

Over the weekend, the Trump administration said that it would invest $1.6 billion in USA Rare Earth Inc. in line with its plans to boost domestic rare earths production and reduce reliance on China. Upon closing, the transaction would give the US government a total of 16.1 million common shares and 17.6 million warrants.

The amount was significantly higher than the $400 million invested in MP Materials Corp. (NYSE:MP) last year.

In other news, MP Materials Corp. (NYSE:MP) late last year partnered with the US Department of War and the Saudi Arabian Mining Company for the development of a rare earth refinery in Saudi Arabia to support the two countries’ manufacturing and defense sectors.

Upon full operations, the new facility will process rare earth feedstock sourced from Saudi Arabia and other global regions and produce significant quantities of separated light and heavy rare earth oxides.

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