MP Materials shares fell 7.5% following a Reuters report on the U.S. critical minerals industry. The report indicates domestic producers are unlikely to meet a 2027 federal deadline to end reliance on China.
CEO James Litinsky described the scaling process as painstaking due to high investment requirements. MP Materials is currently developing a Texas magnet facility to supply General Motors by the end of 2024.
A second facility dedicated to the Pentagon is scheduled for completion in 2028. The report suggests the broader domestic industry remains unready for the government's supply chain timeline.