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.
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PALM BEACH, Fla., Dec. 10, 2020 /PRNewswire/ The rise of the rare earth metals market continues to move upward as it parallels the recent and future upticks of the Electric Vehicle (EV) market. EV s need magnets and they are majorly made from rare earth metals. According to a report
from Grand View research the rising demand for electric vehicles to reduce CO
2emissions is expected to propel the use of permanent magnets in the production of batteries. It said that the global rare earth elements market size was valued at USD 2.80 billion in 2018 and is estimated to witness a CAGR of 10.4% to 2025. A report from Brand Essence Research added to that projection saying that the market size will reach $20.6 billion in 2025. It said that: Growing demand for magnets in automobiles, and energy generation will majorly contribute to the growth of global rare earth metals market over the forecast period. The demand for rare earth magnets is majorly increasing by their consumptio