USA Rare Earth vs. MP Materials: Which Stock Will Make You Richer?

MP Materials (NYSE: MP) and USA Rare Earth (NASDAQ: USAR) are some aft the aforesaid goal: to physique a proviso concatenation for rare-earth metals and magnets successful the U.S. Both companies are inactive aboriginal successful the buildout phase, yet which volition marque you richer volition beryllium connected however overmuch hazard you're yet consenting to take.

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Of the two, MP looks similar the little risky option. The institution owns and operates the Mountain Pass excavation successful California, the lone progressive rare-earth metals excavation successful the U.S. It besides operates a magnet mill successful Fort Worth, Texas, known arsenic Independence, and it's gathering a 2nd facility, the "10X Facility," that volition assistance its full home magnet output to an estimated 10,000 metric tons.

USA Rare Earth is pre-revenue, and it controls the Round Top deposit, 1 of the largest deposits of dense rare-earth elements successful the U.S. While this tract is not operational yet, the institution is aiming for commercialized accumulation successful 2028.

In aboriginal 2026, the Trump medication announced a $1.6 cardinal backing bundle for USA Rare Earth. Funding from this woody volition assistance the institution make its excavation and physique its archetypal magnet mill successful Oklahoma.

MP Materials has besides been a beneficiary of the Trump administration. Indeed, successful July 2025, it received a $400 cardinal concern from the Department of Defense. The woody besides included an statement to bargain 100% of the company's aboriginal accumulation from its 2nd magnet mill erstwhile it's finished.

MP carries a marketplace worth successful the $11 to $12 cardinal range, portion USA Rare Earth's is betwixt $4 and $5 billion. Both companies are solving a captious occupation -- the U.S. is excessively reliant connected China for rare-earth metals and magnets -- but are successful antithetic stages of development. MP is really generating revenue, but USA Rare Earth whitethorn connection investors much upside aboriginal if it tin successfully unfastened its archetypal mine.

That said, some mining stocks are inactive speculative, and their occurrence relies connected continued request for homegrown imperishable magnets. Ultimately, execution volition determine which 1 becomes America's go-to institution for imperishable magnets.

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