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

Group 1 - MP Materials Corp. experienced a significant decline in share prices, dropping by 8.83% to close at $63.44 amid increased competition from USA Rare Earth Inc. which secured a $1.6 billion investment from the US government [1][2] - The US government's investment in USA Rare Earth Inc. is aimed at boosting domestic rare earth production and reducing reliance on China, providing the government with 16.1 million common shares and 17.6 million warrants [2] - MP Materials had previously received a $400 million investment from the US government last year, indicating a shift in funding priorities towards its competitor [2] Group 2 - MP Materials partnered with the US Department of War and the Saudi Arabian Mining Company to develop a rare earth refinery in Saudi Arabia, which will process feedstock from various global regions [3][4] - The new facility is expected to produce significant quantities of separated light and heavy rare earth oxides, supporting manufacturing and defense sectors in both countries [4]