MP Materials Corp. (NYSE:MP) saw its stock price increase over 12% in pre-open trading Tuesday following an announcement by China that it is banning the export of certain minerals to the United States, citing national security reasons. The restricted minerals, which include gallium, germanium, and antimony, are known for their potential military applications.
The directive from China's commerce ministry is a response to what it perceives as a threat to national security and is part of a broader regulation of dual-use items that have both civilian and military uses. The ban took immediate effect and also calls for a more stringent review process for the end-usage of graphite items being exported to the U.S.
The ministry's statement outlined a clear stance on the matter, stating, "In principle, the export of gallium, germanium, antimony, and superhard materials to the United States shall not be permitted." This move comes in the wake of the U.S. government's recent measures targeting China's semiconductor industry.
The impact of this export ban on the market was reflected in the share price of MP Materials, a company involved in the production of materials that could be affected by China's new restrictions.
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