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.
8. Arafura Rare Earths Ltd (OTCMKTS:ARAFF)
Number of Hedge Fund Holders: N/A
Stock’s Upside Potential: 31.87%
Arafura Rare Earths Ltd (OTCMKTS:ARAFF) is among the rare earth stocks to buy with high upside. On March 10, Arafura Rare Earths Ltd (OTCMKTS:ARAFF) 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 (OTCMKTS:ARAFF) 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 (NYSE:MP) 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. (NYSE:MP) 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 (NYSE:MP) 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 (NYSE:MP) 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 (NASDAQ:AREC) 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 (NASDAQ:AREC) 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.
While we acknowledge the potential of AREC to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AREC and that has 100x upside potential, check out our report about the cheapest AI stock.
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