Tomahawk, WI 8/16/2013 (Basicsmedia) – Molycorp Inc (NYSE:MCP) is one of the largest providers of Rare Earths worldwide. The market for Rare Earths is picking up worldwide as advanced technologies continue showing that there are numerous products which can be made using this mineral. One of the industries where Rare Earths are in great demand, and which could boost the performance of MCP is in the manufacture of electric vehicles. These types of vehicles are increasingly in great demand and this is bound to boost the revenue enjoyed by MCP and other similar companies.


Chart shows MCP’s revenue, net income and profit margin from 2012 to 2013. Chart is from

MCP Is Only As Stable As Demand for Electric Vehicles

There is no reason to doubt the fact that electrical cars are on the up. They may still be far away from overtaking traditional cars as the vehicles of choice, but the current trends are quite pleasing, and reassuring. Rare Earths is required in manufacturing the batteries which electric cars use. This raw material is also important in the manufacture of drive motors which are critical elements required in each electric car. Therefore, a company such as MCP owes its existence to the demand which exists for Rare Earths in making electric cars.

There have been too many complaints raised regarding the damage which petrol-based transportation causes on the environment. The demand for eco-friendly products has been on the rise over the recent past. It is believed that the answer lies in electric vehicles, in addition to other products which don’t depend on petrol. MCP is currently in an enviable position where it is set to benefit tremendously on this development when it eventually occurs. The next ten years are critical to the performance of companies which operate together with MCP in this industry.

Eventually when electric vehicles are produced for the mass market, the moment will have arrived for MCP to see a huge upturn in its fortunes as a company. The demand for Rare Earths will be too much, and this will become the new oil or gold. As people continue to appreciate the many benefits they stand to enjoy from using electric vehicles, and the fact that this is not as expensive as petrol-based cars, they will buy more of these thus boosting the revenue earned by MCP and other companies in this sector.

MCP Is A Perfect Investment for the Future

Some people believe that electric cars are more expensive compared to traditional vehicles. At the moment, this might seem true because the companies behind this technology have to recoup the money they used on research and developing electric cars. However, as the demand for these vehicles pick up, and the volume is increased manifold, the benefits will be transferred to car owners in the form of cheaper prices. A time will come when the difference would be minimal, and petrol based cars will be considered analogue, and electric vehicles the digital option.

Anyone who wants to invest in the future has no better platform for doing that other than through the MCP stock. Perhaps this is the right time for investors to put their money and financial resources in such companies, rather than waiting to see what will happen in the future. I believe that this stock has a great future, and the return on investment is not too far away as some would like us to believe.

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