President Trump and Malaysia’s Prime Minister Anwar Ibrahim signed a trade agreement and critical minerals pact Sunday, as the US leader looked to boost trade across Southeast Asia and respond to China’s tightening of access to rare earths https://t.co/aYiN6dC6s1 ...

Core Insights - The article revisits Cleveland-Cliffs (NYSE: CLF) after a gap since 2019, indicating ongoing interest in the company's performance and its relation to the broader economy [1] Company Analysis - Cleveland-Cliffs is monitored due to its significance in understanding economic trends and its connection to downstream companies like Mesabi Trust [1] Analyst Background - The analyst, Bram de Haas, has 15 years of investment experience and over 5 years managing a Euro hedge fund, bringing a unique perspective to investment analysis [1]

Supply Chain Risks - German firms are providing sensitive supply chain information to Beijing due to new Chinese controls on rare earths [1] - This information could potentially be used by Beijing to pressure manufacturers or halt production [1] Geopolitical Implications - New Chinese controls on rare earths are impacting German firms [1]

Core Viewpoint - MP Materials stock has seen a significant decline this week after a strong performance in October, indicating a potential overvaluation in the market for rare earth stocks [1][2]. Group 1: Market Performance - Prior to this week, MP Materials stock had increased by over 20% in October [1]. - As of 10:40 a.m. ET today, shares of MP Materials are down 12.1% from the end of last Friday's trading session [2]. Group 2: Key Events - President Trump and Australian Prime Minister Anthony Albanese signed a critical materials agreement, committing $1 billion from each nation over the next six months to critical minerals operations [4]. - The agreement includes setting a minimum price floor for critical minerals, which may impact market dynamics [4]. Group 3: Valuation Concerns - MP Materials stock is currently trading at 46.3 times sales, significantly higher than its five-year average price-to-sales ratio of 14.8, indicating a rich valuation [4]. - Investors are reacting to the high valuation by reducing buying activity, especially in light of the recent agreement suggesting an increase in rare earth supply [5]. Group 4: Investment Outlook - The recent pullback in MP Materials stock may present a buying opportunity for long-term investors, as the company is positioned for growth in the coming years [6]. - Despite the current decline, the stock's premium valuation and the potential for increased supply of rare earths may lead to speculation about future profitability [5][7].

Australian Strategic Materials aims to choose a location for its planned US rare earths plant by the end of this year, capitalizing on President Donald Trump’s backing for the sector amid growing rivalry with China https://t.co/HkaXaiMCZ5 ...

Tesla's Business Strategy - Canaccord Genuity maintains a buy rating on Tesla stock despite slightly reduced price targets [1] - The market is focused on how Tesla will transition from its current EV business to a future centered on robot cars and humanoids [2] - Tesla plans to increase production capacity, signaling confidence in future EV sales growth [3] - Robo-taxi market penetration is limited by a cost of over $1 per mile, needing to fall below $0.75 to achieve mass adoption [5][6] - Robo-taxi market may not significantly impact Tesla's P&L until 2030 and beyond [6] Rare Earth Minerals Market - The US consumes approximately 50,000 tons of rare earth magnets annually [8] - MP Materials plans to produce 10,000 tons, and USA Rare Earths about 4,800 tons, indicating a significant supply gap in the US market [9] - The US needs more domestic magnet production and the oxides/powders to make them, requiring partnerships with countries like Australia and Canada [9] - The cost of rare earth materials from China is at depressed levels, and the US and Western countries need to determine a sustainable cost structure [10][11] - US magnet production will likely be significantly more expensive than Chinese production due to different cost structures [12]

Geopolitical Risk - The Trump administration is considering software export restrictions on China in response to potential rare-earth export curbs by Beijing [1] Trade Relations - Potential software export restrictions are being weighed as a countermeasure to China's rare-earth export policies [1]

It was incredibly aggressive. It was totally disproportional to anything that uh the US, the EU or Canada or anybody did because remember these are global measures that the Chinese have put in place to purport to control the movement or export of any item containing certain rare earth from one country to another, right. Even if China is not uh you know one of the parties uh in the agreement.So in Geneva we had an agreement where they would limit their rare earth export controls. they'd keep their retaliator ...

On today’s Big Take Asia podcast: How China has cornered the market for rare earths and how it’s weaponizing that dominance ahead of a consequential trade meeting between Xi Jinping and Donald Trump https://t.co/XefPuK1QEc https://t.co/TBTpGspeN4 ...

🎙️ On today’s Big Take Asia podcast: How China has cornered the market for rare earths and how it’s weaponizing that dominance ahead of a consequential trade meeting between Xi Jinping and Donald Trump. ⤵️ https://t.co/2uOFfsGdzt ...