Corrected analyst's name.

NEW YORK (

TheStreet

) --

Molycorp

(MCP)

shares were rising for a second day after the rare earths company announced a joint venture with

Mitsubishi

and

Daido Steel

to manufacture rare earth magnets in a facility in Japan.

Shares rose 11 cents to $30.76 on Tuesday. The stock gained more than 13% on Monday. It is down 38% this year.

Now that Molycorp's joint venture has been announced, investors should turn to the company's completion of a rare earths processing plant in Mountain Pass, Calif., according to a report from Dahlman Rose analyst Anthony Young.

Molycorp announced in October that it would speed up the start on Mountain Pass by three months. By initiating sooner, estimated 2012 production could rise by 3,500 metric tons to between 8,000 to 10,000 metric tons, Molycorp said.

Young has a buy rating on Molycorp with a $70 price target and called the company in a recent report the "best-positioned equity to benefit from the elevated prices in the rare earth sector."

-- Written by Alexandra Zendrian

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Alexandra Zendrian

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