3 Rare Earth Stocks to Watch in 2026

Rare-earth stocks are grabbing headlines lately, as China tightens its grip on exports in the midst of the ongoing trade war with the United States. With the spotlight on critical minerals, U.S. policymakers are prioritizing mining, production, and processing to bolster domestic manufacturing.

Three stocks to pay close attention to in 2026 are MP Materials (NYSE: MP), The Metals Company (NASDAQ: TMC), and USA Rare Earth (NASDAQ: USAR). Here's what investors need to know about investing in these up-and-coming mining stocks.

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MP Materials

MP Materials owns and operates the only rare-earth mining and processing site of scale in North America. Its Mountain Pass Rare Earth Mine and Processing facility in California is one of only two large-scale light rare-earth production facilities outside China.

The Mountain Pass facility produces refined rare-earth oxides, specifically Neodymium-Praseodymium (NdPr) oxide, which is the primary ingredient in powerful magnets used in electric vehicles, hard drive disks, and consumer electronics. NdPr metal is primarily produced through third-party processors (tolling) in Southeast Asia, with more to come at the company's new Independence Facility in Fort Worth, Texas.

In July 2025, MP Materials ceased all sales of its products to China to align with U.S. national security objectives. The company's Independence Facility is a key aspect of its strategy to localize its supply chain, which began generating revenue in the first quarter last year. In addition, MP is planning a massive expansion to build a second manufacturing space, the 10X Facility, which will increase its U.S. magnet manufacturing capacity from 1,000 to 10,000 metric tons annually.

The Metals Company

The Metals Company (TMC) is taking a different approach to mining, aiming to extract polymetallic nodules from the seafloor that contain high concentrations of nickel, copper, cobalt, and manganese. Seabed mining could help the U.S. secure these important critical minerals, but there are risks that doing so could disrupt ecosystems and marine life in unintended ways.

TMC is targeting the seafloor in the international waters of the Clarion-Clipperton Zone, roughly 1,500 miles from San Diego. In April 2025, its subsidiary, TMC USA, submitted the world's first application for a commercial recovery permit to the National Oceanic and Atmospheric Administration (NOAA) under the U.S. Seabed Mining Code.

On Jan. 21, 2026, NOAA finalized a rule that allows companies to submit a consolidated application for both exploration and commercial recovery permits. TMC submitted this application a day later, expanding its proposed commercial area from 25,000 square kilometers to roughly 65,000.

TMC projects that it could receive permit approval by late 2026. That said, it will still take time. Even in optimistic projections, the company aims to deploy infrastructure in 2027 or 2028, with commercial production starting in 2029.

USA Rare Earth

USA Rare Earth is currently building a facility in Stillwater, Oklahoma, that will produce sintered Neodymium-Iron-Boron (neo) magnets, commonly used in defense, automotive, and industrial applications. The company is in the final stages of commissioning for commercial-scale production, which is on track for the first quarter of this year.

Last year, USA Rare Earth acquired Less Common Metals (LCM), a United Kingdom-based manufacturer of specialized rare earth metals, for $100 million in cash and 6.74 million shares. The acquisition helps it secure the feedstock for the strip-cast alloy required for its Oklahoma facility, independent of Chinese sources. It also has its Round Top Project in Texas, which is rich in heavy rare earth, gallium, and beryllium deposits. Production would begin, at the earliest, in 2028.

On Jan. 25, the Trump administration announced a $1.6 billion strategic investment in USA Rare Earth and acquired a 10% equity stake to secure another domestic "mine-to-magnet" supply chain. The deal includes $1.3 billion in senior secured debt via the CHIPS Act finance facility and $277 million in funding. As part of this deal, the U.S. government receives 16.1 million shares and 17.6 million stock warrants at a strike price of $17.17.

These mining stocks are high-risk with upside potential

These rare-earth companies are a play on the domestic market for critical mineral mining and processing in the United States, as the U.S. seeks to reduce its dependence on China. If they can establish themselves, the upside potential could be large for patient investors.

However, these are early-stage companies with a long road ahead, especially given that mining is capital-intensive and building mining and processing capabilities is a slow process. If you do invest in these speculative companies, don't risk more than you are willing to lose, and ensure it's part of a diversified investing approach.

Courtney Carlsen has positions in MP Materials, TMC The Metals Company, and USA Rare Earth. The Motley Fool recommends MP Materials. The Motley Fool has a disclosure policy.