MP Materials Ends Rare Earths Concentrate Shipments to China

MP Materials

MP Materials rare earths shipments

MP Materials rare earths shipments to China have officially ceased in response to newly escalated US-China trade tensions. The company halted exports following China’s move to impose 125pc tariffs on US goods, including critical materials.

MP stated that selling under such tariff conditions is not economically viable and undermines US national security objectives. This decision aligns with its strategy to restore the full rare earth supply chain domestically, avoiding overreliance on China.

Investing in US Rare Earth Independence

MP Materials has invested nearly $1 billion into building a US-based rare earth value chain. Its Mountain Pass facility in California now processes about half of its rare earth concentrate output domestically.

The company exports the rest to allies like Japan and South Korea, reducing dependence on the Chinese market. MP is rapidly expanding its oxide production and is stockpiling feedstock while new capabilities ramp up.

Magnet and Heavy Rare Earth Capacity Expansions

To strengthen supply security, MP is launching permanent magnet manufacturing operations in Texas. It is also accelerating development of heavy rare earth separation technologies to meet demand in defense and EV sectors.

The halt in MP Materials rare earths shipments to China marks a decisive shift toward U.S. critical mineral independence. MP is expected to lead the reshoring of strategic material supply chains amid growing geopolitical uncertainty.

The Metalnomist Commentary

MP’s export suspension reflects a broader geopolitical reordering of critical mineral trade. Its vertical integration strategy in the U.S. is a key step toward supply chain sovereignty for defense and clean energy technologies.