close video Trumps tariffs on critical mineral imports pose a very serious’ threat to global economy, CEO warns
NioCorp CEO Mark Smith joins Mornings with Maria to break down President Donald Trumps tariff agenda and its impact on the U.S.s critical minerals imports.
In response to China’s retaliatory tariffs and export controls, MP Materials, which owns the only U.S. rare earths mine, announced Thursday they will be ceasing shipments of rare earth concentrate to China.
The company said in a statement that they have been preparing for this moment and that it reflects "a long-term vision built to withstand short-term dislocation and emerge stronger."
The company also said that selling their "critical" materials under 125% tariffs is neither commercially rational nor aligned with America’s national interest.
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MP Materials says it started the separation or refining of REEs in recent months. Its the first time the effort has happened on U.S. soil since 2015. (MP Materials / Fox News)
MP says more than 70% of its revenue comes from the sale of rare earths concentrated from rock which nearly half of it is now being refined in California and sold outside China.
That rare earths concentrate from its California mine comprises 17 metals used to produce magnets that assist in turning power into motion for electric vehicles, cell phones and other electronics.
A view of the MP Materials rare earth open-pit mine in Mountain Pass, California, U.S. January 30, 2020. Picture taken January 30, 2020. (REUTERS/Steve Marcus / Reuters Photos)
"MP has invested nearly $1 billion to restore the full rare earth supply chain in the United States. Today, our California refinery is processing nearly half of our production, with virtually all of that material sold into markets outside China—including Japan, South Korea, and the United States," the company stated.
Their decision comes following President Trump’s order to probe into potential new tariffs on all critical mineral imports.
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MP Materials is preparing to manufacture those magnets stateside specifically for General Motors electric vehicles. (MP Materials / Fox News)
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They say they will remain "in close contact with federal leaders and encouraged by their determination to support American industry" and that they are "proud to lead this effort for our partners, our country, and the future."
MP will report quarterly earnings and provide more details on May 8.
Reuters contributed to this report.