Rare-earth elements are crucial for modern technologies, including electric vehicles, data centers, and advanced defense systems.
Yet the supply chain is heavily concentrated in China, which controls 70% of global rare-earth extraction and 90% of rare-earth processing, according to research by The Motley Fool
This reliance on a single country makes the U.S. vulnerable to supply chain disruptions, and policymakers are taking steps to boost domestic production of these critical minerals. Over the past year, several publicly traded companies have emerged to address this gap, including MP Materials (NYSE: MP), USA Rare Earth (NASDAQ: USAR), and TMC The Metals Company (NASDAQ: TMC). These companies are leading the charge as the U.S. builds a vertically integrated “mine-to-magnet” supply chain, but each has a very different risk profile.
If you’re considering investing in rare-earth stocks, two of these are a buy, while one faces far more uncertainty. Here’s what you need to know. The rare-earth supply push Rare-earth elements are crucial for emerging technologies, and magnet metals such as neodymium, praseodymium (NdPr), dysprosium, and terbium are key minerals used to manufacture high-powered permanent magnets.