MP Materials (MP) shares are trading near the $50 mark. The stock fell 13.4% in June after China added the firm to an export restriction list. This geopolitical pressure currently outweighs the company’s positive Q1 financial results.
The company maintains a strategic partnership with the Department of Defense. MP Materials also holds a formal supply agreement with Apple. However, China’s dominance in rare earth processing creates significant indirect risks for the company’s equipment suppliers. Technical analysis currently suggests a bearish short-term outlook for the stock.