U.S.-based MP Materials (MP) is falling in pre-market trading, extending a volatile week for the stock. The latest dip came after Reuters reported that the Trump administration has stepped back from plans to guarantee a minimum price for U.S. critical minerals projects, citing limited congressional funding and the challenge of setting market prices. For MP Materials, the policy shift removes a potential layer of downside protection the market had been expecting.
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MP Materials pushed back on the market reports, calling them “inaccurate, misleading, and inconsistent with the facts.”
The company said it continues to have a binding, long-term agreement with the U.S. Department of War that remains fully in place, including the price protection agreement signed last year. MP added that there has been no change to its contract or to the government’s obligations under it.