MP Materials falls as JPMorgan sees headwinds from China halt

Shares of MP Materials (MP) are moving lower after the company halted shipments of rare earth concentrate to China amid the 125% retaliatory tariffs. JPMorgan believes the near-term financial implications are likely to be meaningful with MP’s mid and downstream operations still ramping. However, the analyst also believes the company’s ambition to become a “Western Champion” potentially coming to fruition quicker than expected. Last year, rare earth concentrate sales accounted for 70% of MP’s segment revenue and the vast majority of its profitability given the losses from the company’s ramping mid and downstream operations, JPMorgan pointed out. Shares of MP Materials are down 12%, or $3.14, to $23.21 in midday trading.