Could This 1 Stock Be a Winner From China's Possible Export Curbs on Rare Earth Metals?
The semiconductor and tech manufacturing industries are on high alert since China fired off a response in the ongoing trade tensions between the U.S. and China. After facing a couple of years of chip and chip technology export bans -- specifically surrounding those needed to build advanced AI systems -- China placed export restrictions on niche semiconductor materials gallium and germanium. Companies will have to begin applying for licenses to buy these materials from China, which plays a dominant role in producing them.
The fear now is that export curbs could spread to rare earth metals, which China has an even more dominant role in supplying. It's happened before: China halted Japan's access to rare earths in 2010 during a spat over territorial disputes over small some small islands.
That has reinvigorated some optimism for U.S.-based MP Materials (NYSE: MP). Shares are down 15% over the last year as inflated prices in many mined products have moderated, but the stock rallied a bit following China's move on semiconductors. Could this be a winning investment in the battle for rare earth metals supply?
Source Fool.com
