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. (NYSEAMERICAN:UUUU)
Number of Hedge Fund Holders: 32
Stock’s Upside Potential: 25.04%
Energy Fuels Inc. (NYSEAMERICAN:UUUU) is among the rare earth stocks to buy with 25% upside.
On March 2, H.C. Wainwright lifted its price target on Energy Fuels Inc. 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. 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. (OTC:ARAAF)
Number of Hedge Fund Holders: N/A
Stock’s Upside Potential: 27.56%
Aclara Resources Inc. (OTC:ARAAF) is among the rare earth stocks to buy with high upside. On March 11, Aclara Resources Inc. 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. 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.
8. Arafura Rare Earths Ltd (OTC:ARAFF)
Number of Hedge Fund Holders: N/A
Stock’s Upside Potential: 31.87%
Arafura Rare Earths Ltd (OTC:ARAFF) is among the rare earth stocks to buy with high upside. On March 10, Arafura Rare Earths Ltd announced that it would issue shares worth A$4 million to ATAYF Pastoralists as part of a compensation deal with the holders of the pastoral lease covering its Nolans Project site.
It said the compensation would formalize access associated with the development of the Nolans Project, which is focused on rare-earths production. Arafura also said that ATAYF Pastoralists would invest A$1.2 million in cash in Arafura shares as the two parties deepen their ties.
In a separate update issued on March 10 regarding the Nolans Project, Arafura said that it has agreed to acquire an existing camp infrastructure with more than 200 rooms at Nolans from an entity called NT Link. It said it would pay A$6.75 million for the facilities. According to Arafura, acquiring these facilities would strengthen the operational flexibility of the Nolans site and eliminate long-term rental costs.
In yet another update on March 10, Arafura said it has partnered with Clean TeQ Water (Clean TeQ) on a program focused on alternative processing of heavy rare-earths to maximize production. Arafura said the global supply of heavy rare-earths remains thin and concentrated in China, yet these elements are critical in industrial and defense applications.
Arafura Rare Earths Ltd is an Australian mining company based in Western Australia. Producing rare-earth elements is part of its business, and its flagship project in this space is the Nolans Rare Earths Project in Central Australia. This project is dedicated to mining and processing a variety of rare-earth elements.
7. MP Materials Corp (NYSE:MP)
Number of Hedge Fund Holders: 53
Stock’s Upside Potential: 37.34%
MP Materials Corp (NYSE:MP) is among the rare earth stocks to buy with high upside. On March 12, MP Materials Corp CFO Ryan Corbett presented at the 2nd Annual CG Virtual Sustainability Summit. Corbett used the summit to highlight the company’s strategic initiatives, including a plan to to reach 6,000 tons in refining capacity by the end of 2026. The company exited 2025 with a 4,000-ton production run rate in its material segment.
Additionally, the executive said the company’s heavy rare-earth separation facilities are set for commissioning in mid-2026. The summit also heard how MP Materials is achieving competitiveness through recycling, and that favorable market conditions are expected to lead to a strong return to profitability.
In other news, DA Davidson on March 10 reiterated its Buy rating on MP Materials Corp. with a price target of $82. Among other things, the equity research firm cited progress in MP Materials’ magnetics production for its renewed bullish view on the stock. MP Materials hit a milestone in Q4 2025 as it made its first production of magnets on a commercial scale. MP Materials delivered a net income of $9.4 million in Q4 2025, compared to a net loss of $22.3 million in Q4 2024. It exited the quarter with $1.17 billion of cash and cash equivalents.
MP Materials Corp is a US company focused on producing rare-earth materials. It operates in materials and magnetic segments. Its products are used in areas like defense systems, clean energy technologies, electric vehicles, and robotics. The company aims to restore America’s rare-earths domestic supply chain. Founded in 2017, MP Materials Corp is headquartered in Las Vegas, Nevada.
6. American Resources Corp (NASDAQ:AREC)
Number of Hedge Fund Holders: 11
Stock’s Upside Potential: 60.77%
American Resources Corp (NASDAQ:AREC) is among the rare earth stocks to buy with high upside. On March 6, American Resources Corp announced that its Electrified Materials Corporation (EMCO) unit has expanded its processing capacity at its Indiana facility. This capacity expansion has been achieved through the addition of a new processing line, and it addresses growing demand for the rare-earth feedstock processing.
What the EMCO unit does is takes end-of-line products and manufacturing scrap and processes them into rare-earth and critical mineral feedstocks. Its work is to produce feedstocks ready for conditioning into material forms that are suitable for refining.
American Resources’ other unit, called ReElement Technologies Corporation (ReElement), takes the conditioned materials and processes them into rare-earth oxides. These processed materials are used in defense, electrification, and advanced manufacturing markets.
In other news, American Resources announced on March 3 that ReElement had filed a patent for a lithium purification technology, marking the subsidiary’s eighth patent filing. ReElement’s lithium purification technology patent describes a platform that processes lithium from brine and other feedstocks in a more efficient manner. For example, the platform requires a smaller footprint and uses fewer chemicals than conventional refining processes.
Indiana-based American Resources Corp is engaged in the production and supply of raw materials for the infrastructure market. Its material supplies include steel, alloys, and critical minerals. Through its Electrified Materials Corporation and ReElement Technologies Corporation units, the company recovers, processes, and refines rare-earth elements and other minerals.
5. American Rare Earths Ltd (OTCQX:ARRNF)
Number of Hedge Fund Holders: N/A
Stock’s Upside Potential: 73.81%
American Rare Earths Ltd (OTCQX:ARRNF) is among the rare earth stocks to buy with high upside. On March 16, American Rare Earths Ltd announced that it has been selected to provide feedstock to a Department of Energy program. This program is focused on minerals to materials supply chain research, and it’s part of an effort to establish a domestic supply chain of critical minerals and materials.
The company says it provided around 5 tons of ore to the program from the Cowboy State Mine test pit. According to American Rare Earths Ltd, the DoE research program uses nine national labs to “validate, improve, and help commercialize technologies developed by domestic entities.” Part of this work involves using American Rare Earths’ processing methods.
According to American Rare Earth, this arrangement benefits by having third-parties affirm its processes. Additionally, the company is able to discover more efficient processing methods through the research program.
In other news, American Rare Earths Ltd announced on March 2 that it decided to consolidate the president and CEO roles. It said Mark Wall assumed the combined position, and that unifying the roles would sharpen decision-making and enhance strategic alignment.
American Rare Earths Ltd is an Australian mining company focused on producing rare-earth elements and other critical minerals. The company’s flagship projects in the US are the Halleck Creek project in Wyoming. This project is aimed at reshaping the rare-earths industry by creating a domestic supply chain for the US market.
4. USA Rare Earth Inc (NASDAQ:USAR)
Number of Hedge Fund Holders: 23
Stock’s Upside Potential: 90.13%
USA Rare Earth Inc (NASDAQ:USAR) is among the rare earth stocks to buy with high upside. On March 12, USA Rare Earth Inc announced that it had appointed Thomas Caulfield to its board of directors. Caulfield led semiconductor company GlobalFoundries (NASDAQ:GFS) as chief executive before transitioning to the executive chairman role. According to USA Rare Earth, Caulfield brings many years of experience in areas like engineering, management, and global operations.
Previously on March 9, USA Rare Earth announced an expansion of its leadership team following a funding agreement with the US federal government. It said that it had picked Valerie Ford Jacob as chief legal officer, Gregory Bowman as chief global policy officer, and J.B. Lowe as head of investor relations. The company said these appointments will help deepen its engagement with policymakers and investors. Back in January, USA Rare Earth Inc struck a $1.6 billion funding deal with the US government to support its rare-earths production.
On March 5, William Blair reiterated an Outperform rating on USA Rare Earth Inc, emphasizing the company’s Round Top rare earth project as a key driver of value. Analyst Neal Dingmann noted conservative assumptions on project timelines but highlighted that USAR trades at just 4.2x EV/EBITDAX versus a peer average of 7.8x, with potential to reach a 10x multiple supported by sector valuations. The firm set a fair value of $42 per share, implying 120% upside, underscoring the strategic importance of rare earth production in meeting future demand.
Oklahoma-based USA Rare Earth Inc is engaged in mining and manufacturing operations. It focuses on the production of rare-earth elements and permanent magnets. Its products have application in things like defense systems, electric cars, and renewable energy technologies. USA Rare Earth is one of those companies aiming to develop a domestic American supply chain of rare-earth materials.
3. Critical Metals Corp (NASDAQ:CRML)
Number of Hedge Fund Holders: 24
Stock’s Upside Potential: 120.99%
Critical Metals Corp (NASDAQ:CRML) is among the rare earth stocks to buy with high upside. On March 16, Critical Metals Corp announced that it has appointed Chang Oh Turkmani to its advisory board. Turkmani is the managing director of The Mega Company, a private development and investment firm based in Washington, D.C. According to Tony Sage, CEO of Critical Metals Corp, Turkmani brings a special blend of legal expertise, global leadership, and extensive experience in international commodities business.
On March 9, Critical Metals Corp reported significant rare earth findings at its Tanbreez project in Greenland. It said this was revealed by final assay results from a 2025 drilling program. The drilling was focused on what the company called Area B and the Fjord Deposit, and the results confirmed significant mineralization in multiple zones. The company said the drilling revealed Total Rare Earth Oxide grades in the range of 0.40% to 0.47%, adding that rare earth oxides comprised 26% to 27% of the total.
According to Critical Metals Corp, the 2025 drilling also revealed that other strategic metals are present across the project area. It mentioned gallium, cerium, hafnium, and yttrium. The company is planning additional drilling programs in 2026 that will focus on optimizing pit designs and advancing resource studies.
New York-based Critical Metals Corp is an emerging leader in rare earth supply. The company has a project called the Tanbreez in Greenland, which it believes has one of the world’s richest untapped rare earth deposits. Critical Metals is among the companies working to build alternative rare earth supply chains to reduce the West’s dependence on China for these materials.
2. Ucore Rare Metals Inc (OTCQX:UURAF)
Number of Hedge Fund Holders: N/A
Stock’s Upside Potential: 158.06%
Ucore Rare Metals Inc (OTCQX:UURAF) is among the rare earth stocks to buy with high upside. On March 6, Ucore Rare Metals Inc provided updates regarding its samarium and gadolinium rare earth oxides production project. This project is focused on producing these rare-earths for aerospace, defense, and strategic industrial supply chains.
According to Ucore Rare Metals, the Pentagon on March 1 requested proposals to boost domestic production of these rare-earths and other critical minerals. Additionally, the company says that US defense procurement restrictions regarding certain magnets are set to tighten significantly from January 2027. In light of these, defense contractors are in a rush to qualify Western-aligned sources of these rare-earths.
According to Ucore Rare Metals Inc, its rare-earths production technology dubbed RapidSX is just what US defense contractors are looking for. It says RapidSX doesn’t rely on Chinese equipment or technology.
Ucore Rare Metals Inc has received around $22.4 million in Pentagon funding to support domestic production of heavy rare-earths. Last month, the company highlighted the sharp difference in rare-earth prices inside and outside China. It noted that some rare-earth prices were five times more outside China than inside. According to the company, this indicates a short supply of these elements, and that this situation enhances its rare-earths refining strategy.
Ucore Rare Metals Inc is a heavy rare-earth elements processing company. It’s headquartered in Canada but has projects in the US. Its flagship rare-earths project is in Alexandria, Louisiana, where the company is deploying its proprietary RapidSX separation technology.
1. NioCorp Developments Ltd (NASDAQ:NB)
Number of Hedge Fund Holders: 28
Stock’s Upside Potential: 177.48%
NioCorp Developments Ltd (NASDAQ:NB) is among the rare earth stocks to buy with high upside. On March 4, NioCorp Developments Ltd announced groundbreaking at its Elk Creek Critical Minerals Project in southeast Nebraska, a site expected to produce niobium, scandium, titanium, and rare earth elements. The event was attended by US representative Adrian Smith, who operated “a 117-ton excavator to start the first official excavation of the mine’s portal,” the company said in a press release.
NioCorp Developments is initially developing the main entrance portal to the project’s underground mine. The portal will function as the main access point for equipment and personnel. Moreover, it will be used to bring ore from the underground mine to the surface processing plant.
The portal construction is a nearly $44.6 million effort that advances the Nebraska project from planning to development phase. The company said last month that it had been able to raise $500 million in capital investments between 2025 and year-to-date. It said this enables it to more intensively advance the Nebraska project.
In its 2025 year review report, NioCorp Developments said the progress it made in 2025 strengthened the foundation of its Elk Creek Project. It said 2026 could be a watershed year for its efforts to move the project to construction and bring it closer to commercial operation.
NioCorp Developments Ltd is an American company focused on producing critical minerals, including rare earth elements. Through its Elk Creek Project in southeast Nebraska, the company aims to produce rare-earths from ore as well as from recycling post-consumer products. Producing permanent rare-earth magnets is a key part of the company’s business plan.
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