As the global race for resource independence accelerates, the domestic rare earth supply chain has become a focal point for long-term investors.
Choosing between MP Materials (NYSE:MP) and USA Rare Earth (NASDAQ:USAR) involves weighing established production against speculative future growth
MP Materials focuses on scaling its existing mine in California while USA Rare Earth aims to build a new supply chain from scratch in Texas. Both companies seek to reduce global reliance on foreign sources for the essential minerals used in everything from electric vehicle motors to high-tech defense systems. The case for MP Materials MP Materials produces critical minerals at its Mountain Pass facility and serves as a major player in the mining stocks landscape, precisely rare earths.
It recently shifted away from selling concentrate to Chinese distributors and now serves clients like Apple (NASDAQ:AAPL), General Motors (NYSE:GM), and the U.S. Department of Defense (or the Department of War). In FY 2025, revenue grew 35.1% to nearly $275.5 million.