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Monday, 08/08/2022 9:10:16 PM

Monday, August 08, 2022 9:10:16 PM

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>>> MP Materials - >>> It's no secret that the adoption of electric vehicles (EV) is shifting into high gear these days. But with all this enthusiasm, there are also well-warranted concerns that the production of rare earth metals, also known as rare earth oxides, or REOs, for the industry will be insufficient. Add to this the fact that China is responsible for the majority of REO production, and it's clear that a U.S.-based REO production company like MP Materials would be a compelling consideration for investors.

When digging into potential investments, one of the most alluring things one can find is that a company has a competitive advantage -- something which MP Materials has in spades. True to their name, REOs are rare, and the barrier to entry for prospective mining companies is formidable. MP Materials, however, has an invaluable asset in the Mountain Pass mine, which has helped the company to become the largest REO producer outside of China. Moreover, the company is developing a vertically integrated infrastructure that will result in it mining the metals, producing the concentrate, and developing rare earth magnets -- a critical component in EVs as well as other applications like drones and wind turbines.

In light of the fact that MP Materials is already generating revenue, earnings, and cash flow, growth investors who are reluctant to take on too much risk should find MP Materials especially interesting.


https://www.fool.com/investing/2022/07/22/3-growth-stocks-you-can-buy-right-now-for-under-10/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article


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