MP Materials (MP): Rare Earth Minerals Mining Company IPO Review
MP Materials Corp. (NYSE: MP) was formed out of Molycorp after it filed for bankruptcy in 2015. MP acquired Mountain Pass mine and other assets from Molycorp in 2017. Currently, it is the only major U.S-based company that is engaged in mining and processing rare earth elements used in a wide range of industries.
Most U.S. companies engaged in mining rare earths had to sell their operations, as they could not compete in the market due to lower prices offered by Chinese firms. However, in recent years, the U.S. government has been keen to boost domestic processing of rare earths to reduce its dependence on China amid an ongoing trade conflict with the second biggest economy of the world. China is currently the largest producer of rare earths. It previously threatened to stop their export to the U.S amid heightened trade tensions between the two countries.