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.
8. Energy Fuels Inc. (NYSE:UUUU)
Year-to-Date Returns: 71.13%
Number of Hedge Fund Holders: 21
Energy Fuels Inc. (NYSE:UUUU) is one of the best rare earth stocks to buy now. On July 17, the company announced it had started producing rare earth element oxides at its White Mesa Mill project in Utah.
The company has started producing dysprosium oxide at a minimum purity of 99.5%. It plans to continue pilot scale dysprosium oxide production until the end of September 2025, while targeting 15kg of production. In addition, the company is on track to start producing terbium oxide in October 2025, with samarium oxide production scheduled for January 2026. Energy Fuels is targeting commercial-scale production of the heavy rare earth oxides as early as the fourth quarter of 2026.
The company plans to start production of rare earth metals at the permitted Donald Project in Australia in the fourth quarter of 2027. The project contains monazite and xenotime minerals.
“Energy Fuels is in a unique position to produce the heavy rare earth oxides needed by other U.S. producers to make rare earth metals, alloys and magnets,” said Mark Chalmers, president and CEO of Energy Fuels.
Energy Fuels Inc. (NYSE:UUUU) is an exploration and mining company involved in the extraction and mining of rare earth elements (REEs). It is focused on becoming a significant domestic supplier of rare earth elements, with a particular emphasis on neodymium-praseodymium (NdPr), a key component in permanent magnets used in electric vehicles and other technologies.
7. Lynas Rare Earths ADR (OTCMKTS:LYSDY)
Year-to-Date Returns: 85.15%
Number of Hedge Fund Holders: N/A
Lynas Rare Earths ADR (OTCMKTS:LYSDY) is one of the best rare earth stocks to buy now. On July 25, JPMorgan upgraded the stock to a ‘Neutral’ from an ‘Underweight’ and increased its price target to AUD10.00 from AUD4.90. The adjustment follows the company’s delivery of solid quarterly results, which affirmed robust production.
The company produced 2.1kt of NdPr oxide, exceeding JPMorgan’s forecast by 22%. The average basket selling price was $60 per kg, outperforming estimates by 22%. The higher price tag offset high production costs and capital expenditure.
In addition, JPMorgan is buoyed by Lynas Rare Earths inking a non-binding memorandum of understanding with JS Link for the supply of rare earth metals to be used for magnet production in Malaysia.
Lynas Rare Earths ADR (OTCMKTS:LYSDY) is a company that mines and processes rare earth materials, essential components for various high-tech and green technologies. It extracts rare earth minerals from its Mt Weld mine in Western Australia and processes them at its facilities in Malaysia and Kalgoorlie.
6. Pensana PLC (OTCMKTS:PNSPF)
Year-to-Date Returns: 90.51%
Number of Hedge Fund Holders: N/A
Pensana PLC (OTCMKTS:PNSPF) is one of the best rare earth stocks to buy now. On July 28, the company confirmed that the overall cost envelope of $217 million for its flagship Longonjo project in Angola remains intact and on schedule.
The company has already mobilized all engineering delivery partners, with SRK Consulting Ltd poised to commence drilling on the tailing storage facility to define the final excavation profile. Upon completing TSF drilling, the contractor is to remobilize to the Coola exploration project to commence a drilling program.
Pensana has already invested $70 million in the Longonjo rare earth project in the Huambo district of Angola.
“We are extremely pleased with the excellent progress on the Longonjo project. The confirmation that our capital costs remain firmly within budget—and that our development timeline is intact—is a great result for the team. This reflects the quality of the planning and technical input to date, and we look forward to positive confirmation of the Coola deposit to extend the use of the processing infrastructure being developed at Longonjo beyond the +20 years currently contemplated,” said CEO Tim George.
The project is believed to contain 139,457 tons of Neodymium-Praseodymium, making it one of the world’s largest and highest-grade deposits.
Pensana PLC (OTCMKTS:PNSPF) is a rare earth exploration and development company. It’s developing the Longonjo rare earths project and the Saltend rare earth refinery project in the UK. The projects seek to produce high-value mixed rare earth carbonate and magnet metal oxides.
5. NioCorp Developments Ltd (NASDAQ:NB)
Year-to-Date Returns: 118.42%
Number of Hedge Fund Holders: 9
NioCorp Developments Ltd. (NASDAQ:NB) is one of the best rare earth stocks to buy now. On July 22, the company announced plans to ramp up pre-construction activities at its Elk Creek Critical Mineral project.
The push comes as the company has raised $60.7 million over the past three months. With the new capital injection, NioCorp is in a solid financial position to accelerate field activities and other pre-construction work streams at the Elk Creek Project. Part of the funds will support the acquisition of additional land, while also financing geomechanical and hydrogeological fieldwork.
NioCorp Development is ramping up efforts at the Elk Creek project, which is expected to produce critical minerals, including niobium, Scandium, and Titanium. The company is also evaluating the project to produce rare earth elements on-site.
NioCorp Developments Ltd (NASDAQ:NB) is a critical minerals company that produces niobium, scandium, and titanium at its Elk Creek Critical Minerals Project in Nebraska. While not currently in production, they are also evaluating the potential to produce rare earth elements (REEs) like neodymium, praseodymium, dysprosium, and terbium from the same project.
4. Ucore Rare Metals Inc (OTCMKTS:UURAF)
Year-to-Date Returns: 175.00%
Number of Hedge Fund Holders: N/A
Ucore Rare Metals Inc. (OTCMKTS:UURAF) is one of the best rare earth stocks to buy now. On July 14, the company confirmed all is set for the construction of a first commercial scale RapidSX machine at the proposed rare earth refining facility in Louisiana.
The construction is part of an $18.4 million US Department of Defense-funded program that focuses on heavy rare earth elements, including terbium and dysprosium. It follows a $4 million Phase 1 award, whereby the company has already received $3.35 million. The project seeks to establish a US rare earth supply chain while reducing dependence on the Chinese supply.
“With Phase 2 of the Award fully mobilized we are now moving RapidSX™ from Commercial Demonstration scale toward Full Scale Production”, said Mike Schrider, Chief Operating Officer of Ucore. “The DoD’s continued support of our project and the rare earth sector at large will accelerate this process and help secure a North American rare earth supply chain.”
Because HREEs are essential to cutting-edge military technologies, they are critical to US national security. Rare earth minerals are used in critical components, such as those found in F-35 jet engines, radar systems, and precision-guided missiles.
Ucore Rare Metals Inc. (OTCMKTS:UURAF) is a company focused on developing and commercializing technologies for the extraction, separation, and beneficiation of rare earth elements (REEs). It seeks to establish a secure, independent, and domestic REE supply chain, disrupting China’s current dominance in the market.
3. Aclara Resources Inc. (OTCMKTS:ARAAF)
Year-to-Date Returns: 238.71%
Number of Hedge Fund Holders: N/A
Aclara Resources Inc. (OTCMKTS:ARAAF) is one of the best rare earth stocks to buy now. On July 22, reports emerged indicating the company was in talks with the US government for possible financing toward a $1.5 billion plan targeting rare earths mining.
The company is seeking $1.5 billion in financing to kickstart mining of rare earth minerals in Latin America. It also plans to develop processing facilities in the US. The company has already submitted its filings with US agencies and is preparing to present its case in Washington.
“Those conversations right now are private, but a project like ours definitely catches the attention of the administration. So we’re trying to explore together with them if there’s an opportunity to join forces,” Chief Executive Officer Ramon Barua said in an interview.
By 2028, Aclara aims to commence mining of ionic clay resources in Brazil and Chile to supply components for wind turbines and electric vehicles. In addition to the extraction projects in Brazil and Chile, the company is exploring potential sites for processing rare earth metals in the United States.
Aclara Resources Inc. (OTCMKTS:ARAAF) is a company focused on producing heavy rare earths. It focuses on supporting the transition to a decarbonized planet by providing critical rare earths for green technologies, such as electric vehicles and wind turbines. Its “mine to magnet” strategy involves developing rare earth mineral resources, particularly from ionic clay deposits, and then separating these into individual rare earth oxides.
2. MP Materials Corp. (NYSE:MP)
Year-to-Date Returns: 299.15%
Number of Hedge Fund Holders: 29
MP Materials Corp. (NYSE:MP) is one of the best rare earth stocks to buy now. On July 21, JPMorgan reiterated a ‘Neutral’ rating on the stock but hiked its price target to $64 from $18. The price target hike follows the signing of a landmark deal with the Department of Defense.
The company has entered into a transformational public-private deal with the DOD. The multibillion-dollar partnership focuses on accelerating the build-out of an end-to-end US rare earth magnet supply chain in the race to reduce foreign dependency.
In addition to the DOD deal, JPMorgan insists that a strategic partnership with Apple, as well as a successful partnership that raised $725 million, has enhanced the company’s visibility in the market. Nevertheless, the investment bank maintains a neutral stance, insisting that while additional offtake agreements could drive multiple expansions, the current valuation reflects an improved risk-reward profile.
MP Materials Corp. (NYSE:MP) is a rare earth materials and magnetics company. It extracts and refines rare earth materials at its Mountain Pass facility in California and is expanding into the manufacturing of rare earth magnets. These magnets are crucial components in various technologies, including electric vehicles, wind turbines, and defense systems.
1. Mkango Resources Ltd (OTCMKTS:MKNGF)
Year-to-Date Returns: 368.18%
Number of Hedge Fund Holders: N/A
Mkango Resources Ltd (OTCMKTS:MKNGF) is one of the best rare earth stocks to buy now. On July 7, the company confirmed the first production run on its commercial-scale Hydrogen Processing of Magnet Scrap (HPMS) vessel at the Tyseley Energy Park recycling plant in Birmingham.
The plant is scheduled to be commissioned over the coming months, serving as the only commercial-scale facility for producing rare-earth sintered magnets in the UK. Compared to the primary production of NdFeB and other recovered NdFeB products, the HPMS-processed NdFeB product has a smaller carbon footprint and a total rare earth concentration of more than 28%. It is comparable to a typical NdFeB alloy used in the fabrication of magnets.
The production run in Birmingham is expected to supply high-grade NdFeB alloy powder for third-party processing. In the long run, it should supply 0.5 tons per month of recycled product.
“Bringing back sintered magnet manufacturing to the UK after a 20-year hiatus will be a major step forward for the UK’s critical mineral ambitions. It also creates a strong platform for further expansion in the UK and we are evaluating expansion options and partnership opportunities to accelerate development,” said Mkango CEO Will Dawes.
Mkango Resources Ltd (OTCMKTS:MKNGF) is a company focused on developing sustainable sources of rare earth elements, specifically neodymium, praseodymium, dysprosium, and terbium. Its strategy involves mine, refine, and recycle approach that differentiates it from other companies in the rare earths sector.
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