MP Materials(US:MP) Benzinga·2026-02-12 11:42Group 1 - CME Group is planning to launch the world's first futures contract in rare earth, which would enable various parties to hedge exposure in a sector dominated by China [1][3] - The proposed contract would be linked to neodymium and praseodymium (NdPR), essential elements for permanent magnets used in electric vehicles, wind turbines, drones, and advanced weapon systems [2][5] - The goal of the contract is to establish a transparent and liquid pricing benchmark outside of China, facilitating hedging for producers, consumers, and financiers, potentially unlocking funding for Western mining and processing projects [3][4] Group 2 - The rare earth market is currently small and thinly traded compared to other metals, and no final decision has been made regarding the contract launch [4] - China holds a dominant position in the rare earth sector, accounting for approximately 90% of global processing capacity, which has implications for U.S.-China trade relations [6] - Recent trade tensions have led to China imposing export controls on critical minerals, although some measures were suspended as part of a broader truce, effective until November 10, 2026 [7]