SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Technical analysis for shorts & longs
SPY 671.910.0%Nov 14 4:00 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Johnny Canuck who wrote (67711)11/7/2025 9:43:35 AM
From: Johnny Canuck  Read Replies (1) of 68016
 
Energy
MP Materials CEO warns investors to approach suddenly hot rare earths industry with caution
Published Fri, Nov 7 20259:20 AM ESTUpdated 9 Min Ago


Spencer Kimball @spencekimball

WATCH LIVE

Key Points

  • MP Materials CEO James Litinsky cautioned investors to approach other rare earth projects with caution as the market speculates about future government deals.
  • The Defense Department struck a landmark agreement with MP in July that includes an equity stake, price floor, and offtake agreement.
  • “The vast majority of projects being promoted today simply will not work at virtually any price,” Litinksy said on MP’s earnings call.




watch now

VIDEO01:35
MP Materials’ shares slide in overtime on quarterly revenue miss

Pentagon-backed MP Materials warned investors this week to approach other rare earths projects with caution, pointing to the industry’s difficult economics.

Stocks of U.S. rare earth companies have had wild swings in recent months as investors have speculated that the Trump administration might strike more deals along the lines of its landmark agreement with MP. Smaller retail traders have gotten involved in the stocks with the VanEck Rare Earth and Strategic Metals ETF up 60% this year.

The Defense Department in July took an equity stake in MP, set a price floor for the company, and inked an offtake agreement with the rare earth miner and magnet maker in an effort to roll back China’s dominance of the industry.

CEO James Litinsky said he didn’t want “people to get burned” amid the speculation. Litinsky cautioned investors “to just be very clear-eyed about what the actual structural economics are amidst all the excitement.”

“The vast majority of projects being promoted today simply will not work at virtually any price,” Litinksy said on the company’s third-quarter earnings call Thursday evening.



VanEck Rare Earth and Strategic Metals ETF
REMX:NYSE Arca
+ View Quote Details

63.35-0.21 (-0.33%)
Last | 9:42 AM EST

VanEck Rare Earth and Strategic Metals ETF, YTD

MP views itself as “America’s national champion,” Litinsky said. MP is the only active rare earth miner in the U.S. and has offtake agreements with Apple and General Motors in addition to the Pentagon.

“We have structural advantage because we’re fully vertically integrated,” the CEO said. “We’re years and billions ahead of others.”

It takes years for the best rare earth producers to ramp up and stabilize their output and economics “despite what some promoters might suggest,” Litinksy said. Australia’s Lynas took about a decade and MP will reach normalized production in about three years from the start of commissioning, he said.



watch now

VIDEO08:16
MP Materials CEO on U.S. government deal: We can truly solve the rare earths magnetics crisis

The White House is “not ruling out other deals with equity stakes or price floors as we did with MP Materials, but that doesn’t mean every initiative we take would be in the shape of the MP deal,” a Trump administration official told CNBC in September.

Litinsky described the rare earth industry as close to a “structural oligopoly,” a system where there are just a few major players. The government investing in a dozens of sites and businesses wouldn’t necessarily set up a supply chain, he said.

The Trump administration should continue to encourage private capital to flow into the industry through loans, grants and other support, Litinsky said. There is room for “a lot of other players and supply” but the market will require “materially higher prices” for the industry’s structural challenges to change, he said.

“If X dollars of capital can stimulate two or three X in private capital, they should be doing that as much as possible,” Litinsky said.

The CEO indicated that he views MP as a forerunner that will help create the conditions for a broader market that is not dependent on China over time.

“In the very short term the administration has made sure that we have a successful national champion in MP,” Litinsky said. “We are going to sort of pave the path if you will to then figure out how there’s much broader supply coming online.”

Rare earths are crucial for making magnets that are key inputs in U.S. weapons platforms, semiconductor manufacturing, electric vehicles, clean energy technology and consumer electronics. Beijing dominates the global supply chain and the U.S. is dependent on China for imports.

WATCH LIVESTREAM Prefer to Listen?

NOW
Squawk on the Street

UP NEXT
Money Movers



  • News TipsGot a confidential news tip? We want to hear from you.

    Get In Touch
  • CNBC NewslettersSign up for free newsletters and get more CNBC delivered to your inbox

    Sign Up NowGet this delivered to your inbox, and more info about our products and services.

  • Advertise With Us Please Contact Us
© 2025 CNBC LLC. All Rights Reserved. A Division of NBCUniversal

Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes, and Market Data and Analysis.

Market Data Terms of Use and DisclaimersData also provided by

Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News