RJ Hamster
3 Rare Earth Stocks to Buy and Hold
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Three of the Best Rare Earth Stocks to Buy and Hold Today
Rare earths are not a “nice-to-have” commodity. They sit at the center of modern industrial and defense supply chains—powering everything from electric motors and wind turbines to smartphones, precision-guided systems, and a growing list of advanced electronics.
The problem is concentration. While rare earth resources exist globally, China dominates the rare earth supply chain, particularly in processing/refining and magnet manufacturing. Recent reporting has cited China supplying nearly 90% of the world’s refined rare earths. Other industry analysis puts China at over 69% of global mine production and nearly 90% of processing. The International Energy Agency (IEA) has also emphasized rising geographic concentration in refining across critical minerals, including rare earths, with supply growth heavily driven by China.
That dependence is increasingly viewed as unacceptable—both economically and geopolitically. The result is a multi-year push to build “mine-to-magnet” capacity outside China, supported by government policy, subsidies, and strategic partnerships.
For investors, that supply-chain reshoring creates opportunity—especially in companies with credible projects, real capacity expansion, and direct government or commercial counterparties.
Here are three ways to gain rare earth exposure today: two stocks with major catalysts and one ETF for diversification.
Company: USA Rare Earth (SYM: USAR)
Accelerating from project story to buildout story
Recent price: about $23.30
USA Rare Earth has been moving quickly—and the market has responded. The company has recently added multiple “execution” catalysts that shift the narrative from concept to commercialization.
Europe expansion: metal and alloy production in France
USA Rare Earth announced plans to build a rare earth metal and alloy facility in Lacq, France, designed to produce 3,750 metric tons per year.
The strategic significance is the location and integration. Reporting notes the plant is expected to be co-located with Carester’s Caremag oxide processing facility with capacity of 1,600 metric tons per year, targeted for commissioning in late 2026, helping create a more complete European rare earth processing-to-metal supply chain.
Support is also meaningful: the same reporting notes French government support covering 45% of eligible equipment costs and €130 million for real estate expenses.
Texas buildout: bringing in EPCM partners for Round Top
USA Rare Earth also selected Fluor and WSP as its engineering, procurement and construction management (EPCM) partners to advance the Definitive Feasibility Study (DFS) for the Round Top Rare Earth Project in Texas.
This matters because feasibility work and top-tier EPCM partners are often prerequisites for credible financing, permitting progress, and downstream contracting discussions. In commodity markets, “who is executing the build” can be almost as important as the resource itself.
Analyst posture
Benchmark has reiterated a Buy rating on USA Rare Earth with a $15 price target, according to Investing.comcoverage of the research note. (Note: the stock price in the market has recently traded above that target, so this functions more as a visibility signal than a near-term valuation anchor.)
Bottom line: USAR is being repriced on project momentum—France capacity plans plus Texas commercialization steps. The major risk is that development-stage projects can face delays, cost overruns, permitting friction, and commodity price volatility.
Stansberry Research
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Company: MP Materials (SYM: MP)
The “mine-to-magnet” centerpiece with DoD backing
Recent price: about $68.86
If the U.S. rare earth story is about building an end-to-end domestic supply chain, MP Materials is one of the most central names—because it operates the Mountain Pass mine and is pushing further downstream into processing and magnet capacity.
The DoD partnership that changed the trajectory
MP Materials announced a “transformational public-private partnership” with the U.S. Department of Defense (DoD) to accelerate an end-to-end U.S. rare earth magnet supply chain and reduce foreign dependency.
Follow-on reporting and government releases have provided more detail on the structure and significance:
- The DoD, via the Office of Strategic Capital, executed a $150 million loan as part of the wider July 2025DoD agreement, aimed at adding heavy rare earth separation capabilities.
- Coverage also described the DoD taking a $400 million stake in MP Materials and supporting long-term procurement arrangements intended to stabilize the domestic supply chain.
This is crucial because rare earth markets can be strategically manipulated through pricing and export controls, and domestic capacity often struggles without stable offtake agreements or price support.
Analyst momentum
William Blair initiated coverage of MP Materials with an Outperformrecommendation in mid-January 2026, per multiple published summaries and William Blair’s own posting about its initiation of MP and other rare-earth-related companies. Barron’s also highlighted improved analyst optimism after the defense deal.
Bottom line: MP offers a rare combination in critical minerals: an operating asset base plus government-backed acceleration into higher-value downstream products. Key risks include commodity pricing, execution risk on processing/magnet expansion, and policy/geopolitical shifts.
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ETF: VanEck Rare Earth and Strategic Metals ETF (SYM: REMX)
Diversified exposure without single-project risk
Recent price: about $97.64
If you like the rare earth thesis but want to reduce single-stock volatility, the ETF route can be more practical.
REMX seeks to track the MVIS Global Rare Earth/Strategic Metals Index and provides exposure to companies involved in producing, refining, and recycling rare earth and strategic metals. The fund lists an expense ratio of 0.58%.
Holdings vary over time, but recent holdings data shows REMX holding about 31 companies, including names commonly associated with rare earths and strategic metals.
Why REMX can make sense now
- Diversification across geographies and business models: mining, refining, and strategic metals exposure can reduce the impact of any one project delay.
- Easier position sizing: investors can express the theme without having to underwrite individual feasibility studies.
- Volatility smoothing: the ETF will still be volatile, but typically less binary than development-stage single names.
Bottom line: REMX is a straightforward “theme basket” for the rare earth/strategic metals complex. The main trade-off is that you accept broader commodity and sector exposure (some holdings may be outside “pure” rare earths) and pay a higher fee than broad-market ETFs.
Brownstone Research
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