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MP Materials, a US-based rare earths minerals producer, has announced that it has stopped rare earth concentrate shipments to China for processing due to China's retaliatory tariffs and export controls.
The company said in a statement: “Selling our valuable critical materials under 125% tariffs is neither commercially rational nor aligned with America’s national interest.
“We have been preparing for this moment since day one. Our mission, capital strategy, and execution reflect a long-term vision built to withstand short-term dislocation and emerge stronger.”
The move effectively cuts off a key revenue stream for MP Materials, which has long depended on Chinese partners for refining rare earths as it scales up processing efforts in California, reported Reuters.
The company has invested nearly $1bn to establish a complete rare earth supply chain within the US.
MP Materials is currently stockpiling concentrate while expediting its downstream operations. This includes increasing oxide production, advancing heavy rare earth separation, and initiating magnet production in Texas.
The company's California refinery is now processing nearly half of its production, with the majority sold to markets outside China, including Japan, South Korea, and the US.
MP Materials has also received urgent inquiries from manufacturers in critical industries seeking a secure and resilient source of materials and magnets.
"We are uniquely positioned to answer that call," MP Materials stated, highlighting their close collaboration with federal leaders and their efforts to support American industry.
Recently, US President Donald Trump's issued an order to investigate potential new tariffs on all critical minerals imports, an initiative partly aimed at enhancing US minerals processing capabilities.
"MP Materials halts rare earth supply to China amid retaliatory tariffs" was originally created and published by Mining Technology, a GlobalData owned brand.
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