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Stock impact report

MP Materials: Industrial Policy And Geopolitics Outweigh Supply-Demand Economics [Seeking Alpha]

MP Materials Corp. (MP) 
Company Research Source: Seeking Alpha
Other governments pick winders. Ours doesn't. But…. Times are changing. We're still big on free enterprise. But geopolitical tensions and critical supply chain needs are pushing us beyond orthodoxy. Case in point: MP Materials and rare earths. MP is about NdPr. That's a hard to mine element that makes super-strong magnets that are essential for many modern industrial, electronic and military needs. China dominates NdPR supply. That's fine for classical economics (i.e. comparative advantage). But it's abhorrent to national defense policy and our need to protect key supply chains. Under laissez faire markets, I doubt I'd favor MP. But U.S. industrial policy changes the picture. The U.S. Government's big investment in MP and its support paints a bullish picture for the stock. Douglas Rissing/iStock via Getty Images Imagine… Batman without Robin. Bonnie without Clyde. Superman without Lois Lane. Penn without Teller. For older readers — Abbot without Costello, Burns without Show less Read more
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