MP Materials Corp (NYSE:MP shares are trading lower following reports that the Trump administration will not move forward with guaranteeing a minimum price for U.S. critical mining projects.
- MP Materials stock is feeling bearish pressure. What’s behind MP decline?
Policy Shift Pressures U.S. Rare‑Earth Stocks
Reuters reported that the administration has stepped back from the proposed price‑support plan, citing concerns about limited congressional funding and the challenges of setting and maintaining government‑backed pricing.
In a closed‑door meeting in Washington, officials reportedly told U.S. minerals executives that future projects will need to be financially viable on their own, without relying on federal price guarantees.
The decision marks a shift from earlier indications that the price floor granted to MP Materials last July would be part of a broader support framework for domestic producers. While that agreement remains in place, officials now say similar guarantees will not be offered to other projects.
The broader goal is to reduce America’s dependence on China, which dominates global rare‑earth production. The materials are essential for defense systems, electronics and clean‑energy technologies.
MP Materials pushed back on the Reuters story, posting a series of messages on X that effectively labeled the report as fake news. The company said its government contract remains fully in force and has not been altered in any way. Its agreement includes a legally binding $110/kg price floor for light rare earths.
Technicals Show Mixed Picture
MP Materials is currently positioned with a mixed technical setup, trading below its 20-day and 100-day simple moving averages, which suggests some short-term weakness. However, the stock remains above its 50-day and 200-day SMAs, indicating a more favorable long-term trend.
The RSI is currently at 56.50, which is neutral territory, indicating that MP Materials isn’t overbought or oversold at this moment. This level suggests that there could be room for further upside if buying momentum picks up. Meanwhile, MACD is above its signal line, pointing to bullish momentum in the near term.
Key support is at $51.00, while resistance is at $64.00. If the stock approaches the resistance level, traders should watch for a potential breakout, whereas a drop to support could signal a trend reversal.
MP Materials’ stock has shown a strong 12-month performance, up 193.04%, reflecting a solid upward trend over the past year. This impressive return indicates that the stock has been in a strong bullish phase, which traders should keep in mind when evaluating potential entry points.
Currently, MP Materials’ stock is trading at 51.5% of its 52-week range, suggesting it is positioned closer to the middle of its yearly performance spectrum. This positioning may indicate that the stock has room to move either way, depending on market sentiment and technical developments.
MP Price Action: MP Materials shares were down 8.82% at $61.19 at the time of publication on Thursday, according to Benzinga Pro.
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