Why Rare-Earth Stocks Are Soaring Today

Source Motley_fool

The Trump administration has opened an investigation that could result in tariffs on rare-earth minerals and other critical materials. The news has the two large U.S.-based rare-earth companies moving higher.

Shares of USA Rare Earth (NASDAQ: USAR) were up 20% and shares of MP Materials (NYSE: MP) were up 12% as of 10:30 a.m. ET following the reports. Energy Fuels (NYSEMKT: UUUU), a uranium producer, is up 10%.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

A trade war beneficiary?

So-called rare-earth minerals aren't very rare, but there is a limited number of companies that are in the business of refining them. It tends to be dirty work and the U.S. has in recent years relied on foreign producers, but that could soon be changing.

The White House has ordered a review of mining and processing of rare-earth minerals to determine whether tariffs are needed to encourage domestic production. Although the review is preliminary, any tariff on foreign producers would help make U.S. producers more cost competitive.

Shares of USA Rare and MP Materials have been on the rise of late as these materials have been thrown into the middle of the trade war. Last week, China, which is responsible for about 70% of U.S. imports of rare-earth minerals, announced it was halting exports.

Uranium isn't considered a rare-earth material, and it is unclear whether it would be caught up in the new tariffs. However, investors appear to be bidding up Energy Fuels shares based on the reports.

Is now the time to buy rare-earth stocks?

For all the fuss made about rare-earth materials, their relative importance is somewhat underwhelming. The U.S. imports less than $200 million worth of these materials annually, and much of what is used goes into magnets that power vacuum cleaners and industrial applications.

That's not to say there won't be opportunities if the tariffs are put in place. But with USA Rare shares up 117%, Energy Fuels up 20%, and MP Materials up 18% in just the past five days, investors would be wise not to be in a rush to buy in right now.

Should you invest $1,000 in Usa Rare Earth right now?

Before you buy stock in Usa Rare Earth, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Usa Rare Earth wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $526,499!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $687,684!*

Now, it’s worth noting Stock Advisor’s total average return is 818% — a market-crushing outperformance compared to 156% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 14, 2025

Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool recommends MP Materials. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Gold Price Forecast: XAU/USD drifts higher above $3,050 amid escalating US-China trade tensionsThe Gold price (XAU/USD) edges higher to around $3,080 during the late American session on Wednesday. The safe-haven demand amid escalating trade tensions between the United States and China provides some support to the precious metal. 
Author  FXStreet
4 Month 10 Day Thu
The Gold price (XAU/USD) edges higher to around $3,080 during the late American session on Wednesday. The safe-haven demand amid escalating trade tensions between the United States and China provides some support to the precious metal. 
placeholder
Gold Price Forecast: XAU/USD retreats further from all-time highs of $3,245 Gold price is back in the red early Monday, snapping a three-day record rally to lifetime highs of $3,245 set on Friday.    
Author  FXStreet
4 Month 14 Day Mon
Gold price is back in the red early Monday, snapping a three-day record rally to lifetime highs of $3,245 set on Friday.    
placeholder
BNB Price Reclaims $600 — Is This the Start of a Major Upside Move?BNB price is rising from the $580 support zone. The price is now consolidating gains above $600 and might aim for more gains in the near term. BNB price is attempting to recover above the $615
Author  FXStreet
4 Month 23 Day Wed
BNB price is rising from the $580 support zone. The price is now consolidating gains above $600 and might aim for more gains in the near term. BNB price is attempting to recover above the $615
placeholder
Ethereum Price Reaches Last H1 Support, Next Major Resistance Comes Into ViewEthereum, the second-largest cryptocurrency, has increased by 12.3% over the past seven days. Interestingly, Ethereum has held its ground firmly, supported by a clean uptrend that began after the
Author  NewsBTC
4 Month 27 Day Sun
Ethereum, the second-largest cryptocurrency, has increased by 12.3% over the past seven days. Interestingly, Ethereum has held its ground firmly, supported by a clean uptrend that began after the
placeholder
Monero (XMR) Price Jumps 50% Amid ‘Suspicious’ $330 Million BTC Transfer – DetailsAn analyst has suggested that Monero (XMR) could repeat its 2021 cycle-high amid its recent price jump. However, a renowned on-chain sleuth has linked the surge to suspicious Bitcoin (BTC)
Author  NewsBTC
4 Month 29 Day Tue
An analyst has suggested that Monero (XMR) could repeat its 2021 cycle-high amid its recent price jump. However, a renowned on-chain sleuth has linked the surge to suspicious Bitcoin (BTC)
goTop
quote