Group 1 - Shares of rare earths miner MP Materials (NYSE: MP) increased by 8% on Thursday, attributed to the U.S. government's stake in the company taken in July [1] - The Trump administration is reportedly considering taking a stake in Lithium America, potentially up to 10%, which has positively influenced the stock prices of critical materials miners [2][3] - The government is looking to expand its involvement in critical industries by taking stakes in various U.S. companies engaged in mining critical materials, particularly battery materials [4] Group 2 - The existing deal between MP Materials and the government includes a significant production increase and price floor, with potential for further strategic deals to enhance commercial sales [5] - The trend of government equity stakes in public companies, while dilutive to shareholders, has not hindered stock performance, as many companies involved have seen stock prices rise this year [7][8]
Why MP Materials Rallied Today