In this article, we will take a look at the 10 Best Rare Earth Stocks to Buy Now.
Control of rare earth metals has emerged as a pawn in the broader conflict between China and the US. As the two countries battle for economic, technological, and geopolitical supremacy, the critical minerals have emerged as a key bargaining chip in the unending trade war.
The results have led to an increased focus on companies with significant exposure to rare earth metals, whose demand is rising due to their ability to power permanent magnets and battery alloys. Consequently, Grand View Research estimates that the global rare earths market is growing at a compound annual growth rate of 8.6% and expected to reach $6.28 billion by 2030.
While China has had a monopoly on this market, the US is slowly hitting back.
“China has had the monopoly in this market for a really long time, and that monopoly has only increased,” said Neha Mukherjee, rare earths research manager at Benchmark Mineral Intelligence. “The cost of production of these separated rare earths and magnets is very low in China, and any producer outside of China cannot enter the market because these prices are what we called as sub-rational prices.”
The US is currently contemplating implementing a price support strategy as it looks to take the fight on rare earths to China. The US Department of Defense has previously taken a significant equity stake in a rare earth company to secure key supplies. In addition, the department has established a price floor for the US rare earths company as part of the strategy.
“Our goal is to build out our supply chains from mines to end use products across the entire critical mineral spectrum,” said Peter Navarro, President Donald Trump’s trade advisor.
The US government is already encouraging rare earth companies to tap into government financial support to enhance their operation. Part of the financial support includes incentives from the recent tax and spending bill. The US government is also considering a ban on the export of equipment containing rare earth magnets to promote domestic recycling.
As rare earths become a powerful weapon in the US-China trade war, companies with exposure to crucial rare earth minerals have emerged as big winners, presenting unique investment opportunities.
Our Methodology
To compile the list of best rare earth stocks to buy now, we scanned ETFs to compile a list of mining companies focused on rare earth minerals. We then focused on companies exploring and mining various rare earth minerals and analyzed why they stand out. Finally, we ranked the stocks in ascending order based on their year to date returns (as of August 5). We also focused on stocks popular among elite hedge funds based on data taken from Insider Monkey’s Q1 2025 database.
Why are we interested in the stocks that hedge funds pile into? The reason is straightforward: our research has demonstrated that we can outperform the market by replicating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Best Rare Earth Stocks to Buy Now
10. American Rare Earths Ltd (OTCMKTS:ARRNF)
Year-to-Date Returns: 33.17%
Number of Hedge Fund Holders: N/A
American Rare Earths Ltd (OTCMKTS:ARRNF) is one of the best rare earth stocks to buy now. On July 24, American Rare Earths secured firm commitments for a private placement of 46.9 million new shares at A$0.32 each, raising A$15 million. The funding round drew strong interest from both new and existing global institutional and professional investors.
The A$15 million capital injection will allow the company to advance the development of its Halleck Creek Rare Earths Project in Wyoming, United States. It is one of the largest rare earth deposits in the country. American Rare Earths is to leverage part of the funds to accelerate the development of a demonstration plant, infill drilling, and engineering works.
“This capital raise comes at a critical time in the US rare earths industry as domestic growth is catalyzed by the government’s decisive action to counter China’s global rare earths dominance. The significant support of the placement by existing shareholders, along with new investors, reaffirms our belief that Halleck Creek’s immense potential positions the company to supply the rapidly growing permanent magnet production capacity in the US,” American Rare Earths chairman Richard Hudson said.
American Rare Earths Ltd (OTCMKTS:ARRNF) is a mining company focused on the exploration and development of rare earth and strategic mineral resources. Its flagship project is the Halleck Creek project in Wyoming, considered one of the largest rare earth deposits in the US.
9. Arafura Rare Earths Ltd (OTCMKTS:ARAFF)
Year-to-Date Returns: 46.87%
Number of Hedge Fund Holders: N/A
Arafura Rare Earths Ltd (OTCMKTS:ARAFF) is one of the best rare earth stocks to buy now. On July 29, the company confirmed it continues to advance its equity funding strategy for Nolans project. The project has already entered into an appraisal phase for potential equity investment from the German Raw Materials Fund.
Arafura is seeking up to €100 million (A$175 million) in funding tied to the supply from Nolans project. An active sales and marketing program is already underway in Germany as the company targets several prospective off-take partners to support funding under the German Raw Materials Fund.
“As rare earths enter a new era of growth, establishing new sectors requires equitable risk sharing between government and industry through direct investment and offtake. We are encouraged by the proactive stance of governments globally. Earlier this month, Germany’s Interministerial Committee referred our Nolans Project to the German Raw Materials Fund (GRMF) for appraisal. We’re excited by the prospect of GRMF’s investment and opportunity to partner with them as a cornerstone investor. Our confidence in securing our equity investment target remains high, given the substantial progress we’re making with all our potential cornerstone investors,” Arafura’s Managing Director Darryl Cuzzubbo said.
The company aims to capitalize on the intensifying geopolitical focus on rare earths. That’s why it is strengthening the strategic position of Nolans projects as a leading construction-ready project. The company exited June with A$27 million in cash.
Arafura Rare Earths Ltd (OTCMKTS:ARAFF) is an Australian company focused on developing the Nolans Project, a rare earth mine and processing facility located in the Northern Territory of Australia. The project will produce Neodymium-Praseodymium (NdPr) oxide, a critical material for high-strength permanent magnets used in electric vehicles and wind turbines. Arafura aims to become a leading global supplier of these rare earth elements, supporting the transition to a low-carbon economy.
