Overview
- Reuters reported the administration is stepping back from plans to guarantee minimum prices for critical-minerals projects, and MP Materials fell more than 8% in pre-market trading Thursday.
- MP Materials called the report inaccurate and said its binding Price Protection Agreement with the U.S. Department of War remains in force.
- Prior government commitments to MP include a $400 million investment, a 10-year supply deal, and a minimum $110 per kilogram price for neodymium-praseodymium already embedded in the contract.
- The stock has whipsawed this week after major funding to rival USA Rare Earth, dropping more than 10% Monday before partially recovering Tuesday.
- Analysts maintain a Strong Buy rating with a $76.13 average price target, while coverage notes any broader policy pullback would not change MP’s current contracts or operations.