In this article, we will be taking a look at the 8 Best Rare Earth Stocks to Buy in 2026.
The demand for vital minerals that are necessary for sophisticated electronics, defense technology, and sustainable energy has led to a growing interest in rare earth mineral stocks. A large supply of minerals, including lithium, nickel, cobalt, graphite, and rare earth elements, is needed for the world’s transition to renewable energy and electrification. According to Virginia Martin Heriz, worldwide coordinator of Sustainable Investing Research at J.P. Morgan, the energy shift is changing the demand for essential minerals required for solar batteries, electric vehicles, wind turbines, and energy storage systems.
Supply chain concentration is one of the main factors propelling the industry. With around 60% of the world’s production and about 90% of its processing capacity, China presently leads the rare earth sector. Globally, this reliance has sparked strategic worries. As part of larger difficulties around U.S. trade policies, China prohibited exports of seven important rare earth elements at the beginning of the year. Later, limits were extended to five more elements and processing equipment.
As a result, attempts to create local supply chains are being accelerated in the United States and other Western economies. In reaction to Chinese export restrictions, the U.S. government has expanded funding for rare earth producers and purchased shares in significant businesses. A $1 billion reserve of essential minerals, such as cobalt, antimony, tantalum, and scandium, which are necessary for defense technology, is being planned by the Defense Logistics Agency as part of the Pentagon’s increased purchase activities.
Unlike popular subjects like artificial intelligence, rare earth stocks are a less well-established investment opportunity driven by supply constraints, long-term industrial demand, and geopolitics. As governments prioritize resource security, institutional investors are increasingly concentrating on companies in the mining, processing, refining, and magnet manufacturing industries.
However, there are a lot of risks associated with this industry. Execution of mining projects is a major difficulty because they require significant funding, lengthy development periods, and regulatory permits. However, rare earths are a strategic investment theme backed by strong structural trends, and demand is predicted to increase as the globe grows more electrified and technologically advanced. The industry provides exposure to a crucial aspect of the future global economy for investors who are prepared to handle its complexity.
With that said, let’s now focus on the best rare earth stocks.
Our Methodology
For our methodology, we began by screening rare earth stocks with positive analyst upside potential. From this list, we selected companies with the most recent developments, news, and significant catalysts. We then ranked these stocks based on their total number of hedge fund holders as of Q1 2026, using data tracked by the Insider Monkey database.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
Here is our list of the 8 best rare earth stocks to buy in 2026.
8. Sigma Lithium Corporation (NASDAQ:SGML)
Number of Hedge Fund Holders:15
Sigma Lithium Corporation (NASDAQ:SGML) is among the best rare earth stocks on this list.
TheFly reported on June 9 that SGML announced that a Court of Appeal Judge in the Court of Justice of Minas Gerais overturned a previous lower court ruling that included a potential $10 million legal collateral requirement. The court requested that SGML support the appointment of an independent technical advisory firm to assess and monitor the impact of the company’s operations on residents in the municipalities of Aracuai and Itinga. Sigma Lithium welcomed the assessment process, stating that the independent review would provide an opportunity to establish factual information regarding the operational impacts.
Separately, on June 2, Sigma Lithium Corporation reported the filing of one year of externally verified environmental monitoring data covering the 12 months through May 2026. The data demonstrated the company’s performance in managing dust, noise, and vibration levels across nearby communities. Results showed dust emissions remained significantly below established regulatory standards, while vibration measurements were recorded at very low levels, and noise monitoring confirmed compliance with applicable requirements. SGML stated that the independently collected data provides objective evidence of its environmental performance and supports the company’s commitment to sustainable mining practices.
Sigma Lithium Corporation is a global lithium producer supplying high-purity, sustainable battery-grade lithium concentrate for the electric vehicle market.
7. American Resources Corporation (NASDAQ:AREC)
Number of Hedge Fund Holders: 19
American Resources Corporation (NASDAQ:AREC) is among the best rare earth stocks on this list.
TheFly reported on June 25 that AREC announced that ReElement Technologies, in which the company holds a minority interest, became a member of the Global Trusted Tech Network of the Krach Institute for Tech Diplomacy at Purdue. The network brings together governments, companies, institutions, and leaders focused on promoting trusted technologies and improving cooperation among allied nations. ReElement’s involvement is expected to support efforts aimed at developing secure, transparent, and diversified critical mineral supply chains while reducing reliance on sources considered strategic risks.
On June 22, American Resources Corporation provided an update on the Phase 1 development of ReElement Technologies’ rare earth and critical mineral refining campus in Marion, Indiana. The initial commercial production line at the facility is focused on processing germanium and other strategic materials sourced from recycled and primary feedstocks. The company reported that most major equipment needed for the first germanium production line has either arrived at the site or is in the process of being delivered and installed. ReElement is targeting the start of commercial operations in the third quarter of 2026 as it advances a modular refining platform designed to process multiple elements and feedstocks.
American Resources Corporation provides critical minerals, rare earth elements, and carbon solutions for infrastructure, electrification, and defense markets.
6. Critical Metals Corp. (NASDAQ:CRML)
Number of Hedge Fund Holders: 20
Critical Metals Corp. (NASDAQ:CRML) is among the best rare earth stocks on this list.
Critical Metals Corp. announced on June 17 the launch of its planned 10,000-meter diamond drilling campaign at the company’s wholly owned Tanbreez Rare Earth Project in Southern Greenland. The drilling program represents a key step in advancing the project and is intended to support resource expansion, geological modeling, mine planning, and future development efforts. The company confirmed that project infrastructure, including accommodation and operational facilities, has been completed to support the 2026 field season. Drilling teams and equipment have been mobilized, with operations underway following safety checks and readiness reviews. The program is expected to provide additional geological data to advance Tanbreez toward future production.
Separately, this corporate expansion followed CRML’s execution of a binding Scheme Implementation Deed to acquire all issued shares and listed options of European Lithium Ltd. (ASX:EUR). According to the reports published earlier on May 18, the transaction is structured through two interdependent schemes of arrangement under Australian law and is expected to strengthen Critical Metals’ position in the rare earth sector. Upon completion, the company aims to consolidate full ownership of the Tanbreez Rare Earth Project in Greenland, reduce share dilution related to cross-holdings, and improve its balance sheet. The acquisition is expected to provide additional financial flexibility to accelerate Tanbreez development and support future growth opportunities.
Critical Metals Corp. is a mining company focused on developing strategic minerals for clean energy, advanced technology, and defense applications.
5. TMC the metals company Inc. (NASDAQ:TMC)
Number of Hedge Fund Holders: 24
TMC the metals company Inc. (NASDAQ:TMC) is among the best rare earth stocks on this list.
TheFly reported on June 4 that Maxim initiated coverage of The TMC with a Buy rating and assigned the company a $10 price target.
In other news, a month earlier, on May 28, TMC the metals company Inc. announced that its U.S. subsidiary, The Metals Company USA LLC, received formal certification from the U.S. National Oceanic and Atmospheric Administration (NOAA) for its USA B exploration license application. The application covers approximately 122,000 square kilometers of seafloor containing an estimated 1.02 billion tonnes of polymetallic nodules, according to the company’s technical assessment. The certification represents an important regulatory step toward advancing the exploration process, including future environmental review activities.
TMC the metals company Inc. stated that NOAA’s process will include preparation of an Environmental Impact Statement, public review, and a final decision regarding the license. The company highlighted that it has spent more than a decade conducting scientific research, environmental data collection, and offshore engineering studies related to polymetallic nodules and their surrounding ecosystems. TMC noted that its research has contributed to numerous peer-reviewed studies and will continue supporting future environmental assessments. The company expects the USA B exploration activities to generate additional scientific data as it progresses through the regulatory pathway.
TMC the metals company Inc. is a deep-sea mining company developing battery metals from ocean-floor nodules to support EV and clean energy markets.
4. Energy Fuels Inc. (NYSEAMERICAN:UUUU)
Number of Hedge Fund Holders: 26
Energy Fuels Inc. (NYSEAMERICAN:UUUU) is among the best rare earth stocks on this list.
TheFly reported on June 25 that Roth Capital reduced its price target for UUUU to $16 from $17 while maintaining a Neutral rating on the shares. The firm stated that the company’s planned acquisition of Vacuumschmelze GmbH is strategically aligned with its business, although it chose not to assess the transaction’s valuation because the target is privately held. Roth Capital also noted that its revised price target reflects ongoing weakness across the sector and the anticipated impact of Energy Fuels’ pending acquisitions on the company’s valuation.
This price target revision is prominent, followed by Energy Fuels Inc.’s June 23 announcement of a definitive agreement to acquire 100% of Vacuumschmelze GmbH (VAC) and its affiliated subsidiaries for approximately $1.9 billion in cash and stock. It was reported that upon completion, VAC will operate as a wholly owned subsidiary while retaining its existing brand and headquarters in Germany. The transaction is intended to establish an integrated rare earth supply chain spanning mining, processing, and advanced magnet manufacturing. Energy Fuels also secured financing commitments and government support to advance key expansion projects. The acquisition is expected to close in early 2027, subject to customary regulatory approvals and closing conditions.
Energy Fuels Inc. is a leading U.S. producer of uranium and critical minerals for nuclear energy, clean energy, and advanced technologies.
3. NioCorp Developments Ltd. (NASDAQ:NB)
Number of Hedge Fund Holders: 29
NioCorp Developments Ltd. (NASDAQ:NB) is among the best rare earth stocks on this list.
TheFly reported on June 9 that B. Riley Securities initiated coverage of NB with a Buy rating and a $12 price target. The firm highlighted the company’s progress in advancing the Elk Creek Critical Minerals Project in southeastern Nebraska, describing it as one of the more advanced and lower-risk critical minerals development projects in the United States.
In other news, on June 1, NioCorp Developments Ltd. announced that its Chairman and CEO, Mark A. Smith, authored an opinion piece published on FoxNews.com addressing China’s restrictions on heavy rare earth exports. In the article, Smith argued that the export controls reflect a long-term strategic policy rather than a temporary negotiating measure, warning that the United States could face prolonged shortages of critical rare earth materials until domestic production capacity is established. He emphasized the importance of heavy rare earth elements such as dysprosium and terbium for permanent magnets used in defense systems, aerospace applications, electric vehicles, and other advanced technologies. Smith also highlighted ongoing U.S. efforts to strengthen domestic critical mineral supply chains, noting that expanding mine-to-manufacturer capabilities is essential to reducing reliance on foreign sources for strategically important materials.
NioCorp Developments Ltd.is a mineral development company advancing the Elk Creek Project to supply critical minerals for aerospace, defense, and advanced manufacturing.
2. USA Rare Earth, Inc. (NASDAQ:USAR)
Number of Hedge Fund Holders: 39
USA Rare Earth, Inc. (NASDAQ:USAR) is among the best rare earth stocks on this list.
TheFly reported on June 4 that Cantor Fitzgerald analyst Derek Soderberg increased the price target for USAR to $40 from $35 while maintaining an Overweight rating on the shares. The revised target followed the company’s agreements with the U.S. Department of Commerce, which provide access to potential funding of up to $1.6 billion through the Department’s CHIPS Program.
More recently, on June 15, USA Rare Earth, Inc. announced the commissioning of its hydrometallurgical demonstration facility in Wheat Ridge, Colorado. The company expects initial separated oxide production to begin in the third quarter, positioning USA Rare Earth among the limited number of Western companies capable of producing commercial-quality heavy rare earth oxides. The facility is conducting parallel processing campaigns using Round Top ore, third-party mixed rare earth carbonate materials, and recycled rare earth magnet waste. Results from these efforts are expected to support the Round Top Definitive Feasibility Study and help guide the engineering plans for future processing facilities. The company aims to build a fully integrated rare earth supply chain connecting oxide production, metal and alloy manufacturing, and permanent magnet operations.
USA Rare Earth, Inc. is a critical minerals company building a U.S.-based mine-to-magnet supply chain for defense, aerospace, EV, and renewable energy industries.
1. MP Materials Corp. (NYSE:MP)
Number of Hedge Fund Holders: 52
MP Materials Corp. (NYSE:MP) is among the best rare earth stocks on this list.
TheFly reported on June 1 that Needham initiated coverage of MP with a Buy rating and assigned an $81 price target. The firm highlighted MP Materials’ position as one of the few Western companies developing a fully integrated rare earth supply chain. Needham noted that the company’s Mountain Pass operations and early progress in downstream manufacturing provide a competitive advantage compared with newer industry entrants.
Separately, in its first quarter 2026 financial results, which were posted on May 7, MP Materials Corp. reported revenue of $90.6 million, representing a 49% year-over-year increase driven by stronger sales of NdPr oxide, metal products, and magnetic precursor materials. The company attributed the growth to increased production of separated products and improved market pricing. Adjusted EBITDA rose by $39.3 million year over year to $36.6 million, supported by higher revenue and price protection agreement income. Adjusted net income improved to $6.7 million, while net loss narrowed to $8.0 million compared with the prior-year period. MP Materials also reported improvements in diluted loss per share and adjusted diluted EPS, reflecting continued operational progress.
MP Materials Corp. is a U.S.-based rare earth producer with a fully integrated supply chain focused on securing critical materials for EVs, defense, and advanced technologies.
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