Century Aluminum Stock And 2 U.S. Materials Picks Facing New Tariff Pressure

Rising trade tensions between the U.S. and South Africa, including the prospect of a 12.5% tariff on a wide range of South African exports and questions around future AGOA access, are reshaping how investors think about U.S. materials and auto stocks. If imports of metals, vehicles or related goods face higher costs or tighter access, some U.S. companies could see changing demand patterns at home. This article walks through three stocks exposed to these developments, explaining how the current tariff risks and policy uncertainty might influence their prospects and what that could mean for your portfolio decisions.

Century Aluminum (CENX)

Overview: Century Aluminum is a Chicago headquartered producer of primary aluminum and alumina, operating smelters in the United States and Iceland, along with a carbon anode plant in the Netherlands and bauxite mining and alumina refining in Jamaica. Its output ranges from standard-grade metal to higher value products used across autos, construction and other industrial end markets.

Operations: Century Aluminum generates about US$2.5b in revenue from primary aluminum, with around US$1.9b coming from the United States and US$660 million from Iceland.

Market Cap: US$4.4b

Century Aluminum sits at the crossroads of trade policy and industrial demand, which is why tariffs on foreign metals and potential new trade barriers are important to understand. The company has a U.S. and EU production footprint that is supported by existing aluminum tariffs and manufacturing tax credits, and it also offers exposure to the TeraWulf Anthropic data center deal through its stake in TeraWulf. At the same time, high non cash earnings and reliance on government support, power contracts and trade protection introduce risk if conditions change. A key consideration is how these potential benefits and risks compare when evaluating Century Aluminum for a portfolio.

Century Aluminum’s mix of US backed protection, EU assets and the TeraWulf link raises big questions about how durable its story really is, so it is worth scanning the 4 key rewards and 1 important major warning sign

MP Materials (MP)

Overview: MP Materials is a Las Vegas based producer of rare earth materials, running the Mountain Pass mine in California and turning its output into higher value NdPr metals and NdFeB magnets that go into EVs, electronics and defense systems. By combining mining with magnet manufacturing, MP Materials sits at the center of efforts to build a domestic supply chain for critical rare earths in the Western Hemisphere.

Operations: MP Materials generates about US$270.2m in revenue from its Materials segment and US$82.7m from Magnetics, with a small segment adjustment of US$5.4m. Its reported revenue is currently concentrated in the United States at roughly US$347.6m.

Market Cap: US$9.3b

MP Materials stands out in this screener because it is a U.S. based rare earth producer that could become more important as tariffs raise questions over imported metals and supply security. Long term offtake deals with the Department of Defense and Apple, price floors and government support for magnet facilities contribute to MP Materials’ revenue visibility, even though the company is currently unprofitable and carries high P/S multiples. At the same time, heavy customer concentration, expansion costs and legal disputes highlight that execution and governance risks are present. For investors tracking U.S. Domestic Materials and Automobiles, a key consideration is how these trade dynamics, contracts and risks will affect MP Materials’ next chapter.

MP Materials’ rare earth story is accelerating, yet most investors still treat it as just another miner, so it is worth reading the 3 key rewards and 1 important warning sign to see what its contracts might be masking

Ferroglobe (GSM)

Overview: Ferroglobe is a London based producer of silicon metal and silicon and manganese based alloys that feed directly into steel, aluminum, auto, solar, electronics and construction supply chains, backed by its own mines, coal operations and hydropower assets across several countries.

Market Cap: US$610.3m

Ferroglobe provides direct exposure to materials that sit at the heart of U.S. autos and industrial production, with a footprint that can benefit when protectionist trade policies make imported silicon metal more expensive. The company is still reporting losses and faces pressure from low priced imports and complex tariff decisions. Analysts have highlighted what they view as meaningful earnings growth potential and a large gap between the current share price and their estimates of fair value. Recent tariff petitions by U.S. silicon producers and Ferroglobe’s ability to serve customers from multiple regions could be especially important if South African and other foreign exports face higher barriers. This context helps explain why this stock appears in the U.S. Domestic Materials and Automobiles screener.

Ferroglobe’s tariff story is evolving fast, yet many investors still treat it as just another materials stock. Get the fuller picture with the 3 key rewards and 1 important major warning sign

The stocks in this article are just a starting point, with the full U.S. Domestic Materials and Automobiles screener surfacing 40 more U.S. focused materials, auto and related companies that share similarly compelling trade and demand narratives. Use Simply Wall St to identify and analyze the specific catalysts, contract structures and policy exposures that matter to you so you can focus on the highest conviction ideas in this theme.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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