In this article, we will discuss the 10 Rare Earth Stocks to Buy with High Upside.
Momentum is building on the efforts to develop a rare earth materials supply chain outside China. This is viewed as important from both national security and economic standpoints. Rare-earth minerals are used to produce magnets and other products that are critical in defense, renewable energy, and other industrial applications.
China has built a tight grip on the global rare-earth mineral supply. According to Goldman Sachs, China controls almost 70% of rare-earth mining, 92% of rare-earth refining, and 98% of magnet production.
China has used its dominance of the rare-earths market as a leverage in trade spats with the US. In 2025, for instance, it throttled access to its minerals in response to US tariffs on its products. That was a warning shot about the risk of depending on Chinese supplies for such vital materials. Consequently, it has spurred efforts to build a domestic supply chain to reduce reliance on China.
In this context, rare-earth companies have seen a wave of funding inflows from private and government sources. In February, the White House unveiled a $12 billion initiative to build a stockpile of rare-earths and other critical minerals for non-military purposes. The Pentagon is also directly funding some rare-earth projects. In October last year, JPMorgan said it would invest $10 billion in companies that are critical to US national security, such as producers of critical minerals.
With the private and government funding, rare-earth companies now have money to expand facilities, make strategic acquisitions, and hire experts.
According to a Bloomberg Intelligence report released on March 2, the demand for key rare-earth elements is expected to rise 7% annually through 2030. This demand is driven by expanding consumer electronics, electric vehicles, and military applications. Although rare-earths production capacity is being added, the report says rising demand will continue to outpace supply. This shortage will result in stronger prices for rare-earth producers.
With that background in mind, let’s now take a look at the 10 best rare earth stocks to buy with high upside.
Source: Pexels
Our Methodology
To compile the list of 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. Next, we selected stocks with an upside potential of at least 20% (as of March 16). Additionally, we checked the Insider Monkey database to identify stocks that are favored by hedge funds as of Q4 2025. Finally, the stocks are ranked in ascending order based on price upside potential.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows we can outperform the market by imitating 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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here)
Rare Earth Stocks to Buy with High Upside
10. Energy Fuels Inc. (NYSE:UUUU)
Number of Hedge Fund Holders: 32
Stock’s Upside Potential: 25.04%
Energy Fuels Inc. (NYSE:UUUU) is among the rare earth stocks to buy with 25% upside. If you wish to check out rare earth stocks with more than 70% upside potential, read more at 5 Rare Earth Stocks to Buy with High Upside.
On March 2, H.C. Wainwright lifted its price target on Energy Fuels Inc. (NYSE:UUUU) to $27.25 from $26.75 while reiterating a Buy rating on the stock. The equity research firm says 2025 was a transformational year for Energy Fuels, noting that the management achieved several milestones across the company’s uranium and rare-earth businesses last year.
In 2025, Energy Fuels Inc. generated revenue of $65.9 million and posted a net loss of 86.1 million. It exited the year with $927.4 million in working capital, which included $64.7 million in cash and cash equivalents.
In other news, Energy Fuels is set for senior executive changes in the coming month. In a regulatory filing on March 2, the company said its current CEO Mark Chalmers will retire on April 15 and be replaced immediately by Ross Bhappu, who currently serves as the company’s president. Energy Fuels previously disclosed this succession plan during the release of its 2025 results last month. Chalmers is expected to stay on as a consultant to the company for two years.
Colorado-based Energy Fuels Inc. (NYSE:UUUU) primarily produces uranium, and it’s one of the largest uranium supplier in the U.S. The company has also diversified into the rare-earths business. Energy Fuels Inc. has partnered with Vulcan Elements, rare-earth magnet manufacturer, in its rare-earths venture.
9. Aclara Resources Inc. (OTCMKTS:ARAAF)
Number of Hedge Fund Holders: N/A
Stock’s Upside Potential: 27.56%
Aclara Resources Inc. (OTCMKTS:ARAAF) is among the rare earth stocks to buy with high upside. On March 11, Aclara Resources Inc. (OTCMKTS:ARAAF) announced significant progress in its rare-earth metals and alloys production project. This project aims to supply the permanent magnet manufacturing industry with high-purity rare-earth metals and alloys. The project will use oxides from Aclara’s heavy rare earth separation facility in Louisiana, US.
At this point, Aclara Resources says it has completed the design of the production process. An internal pre-feasibility study is underway and is expected to be completed by the end of March 2026. The next step will be an internal feasibility study, which is expected to be finalized by the end of 2026. Aclara Resources has also planned plant demonstration stages to show the ability to produce metals and alloys that meet customer specifications.
According to Aclara Resources CEO Ramón Barúa, they expect to have a project ready for construction at the end of 2026. Barúa says that the project would be supported by proven technology and operate efficiently, reliably, and sustainably. The project would be fed with supplies from the Louisiana separation plant as well as the company’s mines in Chile and Brazil.
Aclara Resources Inc. (OTCMKTS:ARAAF) is a mining company engaged in the exploration and development of rare-earth mineral resources. The company has mines in Chile, Brazil, and Peru, and it aims to be the one-stop solution for those magnetic rare-earths. Aclara Resources was founded in 2021 and is based in Peru.
