MP Materials Stock Is Trading Higher Monday: What's Going On?

MP Materials Corp. MP shares are moving higher. The U.S. is set to engage in trade talks with China in London on Monday. Rare earth materials are expected to be a key topic of discussion.

What To Know: Morgan Stanley analyst Carlos De Alba upgraded MP Materials from Equal-Weight to Overweight and raised the price target from $23 to $34 on Friday.

The analyst said MP Materials is best positioned to benefit from growing geopolitical focus on critical mineral supply chains, according to CNBC.

MP Materials operates the only rare earth mine in the U.S. at Mountain Pass, California, while China controls most of the global market for rare earth processing. De Alba noted that trade tensions have pushed mineral supply chains into focus.

In April, China imposed export restrictions on certain rare earth elements in response to tariffs introduced by President Donald Trump. While talks are ongoing, those restrictions remain in place. Notably, the U.S. depends on China for about 70% of imports for rare earth elements.

Last week, Trump eased limits under the Defense Production Act, which could allow the U.S. government to offer above-market prices for rare earths. Morgan Stanley said MP is well positioned to benefit from this policy shift.

The company is also building a fully domestic supply chain and plans to begin commercial production of rare earth magnets used in electric vehicles, wind turbines and other advanced technologies. Analysts are optimistic that MP will be able to generate positive free cash flows longer term.

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MP Price Action: At the time of publication, MP Materials shares were up 6.54% at $27.38, according to data from Benzinga Pro.

Image: courtesy of MP Materials.