The United States faces a huge supply chain vulnerability regarding rare-earth elements.
That’s because China controls up to 90% of the processing of these rare-earth elements, according to research by The Motley Fool
The federal government has taken an active role in bolstering rare-earth mining and processing and has invested in two companies, MP Materials (NYSE: MP) and USA Rare Earth (NASDAQ: USAR), to bolster its capabilities. The two companies are expanding their capabilities for mining and processing rare-earth elements and manufacturing refined magnets, which are critical for defense, aerospace, and technological applications. If you’re considering investing in the budding U.S. rare-earth industry, one of these companies stands out as a better investment right now.
The U.S. government has a vested interest in MP Materials and USA Rare Earth MP Materials and USA Rare Earth are two companies that have come onto investors’ radar after the U.S. government provided massive financial backing and support. Last year, MP Materials entered into a historic agreement with the U.S. Department of Defense (DoD) to help accelerate the build-out of its second domestic magnet facility (the 10X facility) and its mining capabilities.