Top Rare Earth Stocks to Buy in 2026: MP Materials, TMC, and USA Rare Earth

The global scramble for critical minerals has intensified, and the United States is positioning itself as a serious player in the rare earth stocks market. With China maintaining tight control over rare earth production and exports, American companies are stepping up efforts to build domestic supply chains. For investors tracking the best rare earth stocks, three companies are emerging as particularly noteworthy contenders in 2026: MP Materials, The Metals Company, and USA Rare Earth.

Why Rare Earth Stocks Matter in 2026

Rare earth elements are essential for modern technology—from electric vehicle motors to defense systems and consumer electronics. As geopolitical tensions persist and supply chain vulnerabilities become apparent, policymakers have prioritized domestic mining and processing capabilities. This shift creates significant opportunities for rare earth stocks positioned to capture the demand.

The U.S. government is backing this transition aggressively. With strategic investments and policy support, the stage is set for rare earth stocks to potentially deliver substantial returns for investors willing to take on some risk. The key question for investors is not whether to invest in this sector, but which rare earth stocks offer the best value and growth potential.

MP Materials: Scaling Domestic Rare Earth Production

MP Materials operates the only large-scale rare earth production facility in North America—the Mountain Pass Rare Earth Mine and Processing Complex in California. This facility ranks among just two major light rare earth production centers outside China, producing refined rare earth oxides including Neodymium-Praseodymium (NdPr) oxide, the core component in high-powered magnets for electric vehicles, computer hard drives, and consumer devices.

The company’s strategy centers on vertical integration and localization. Its Independence Facility in Fort Worth, Texas, which commenced operations last year, processes NdPr metal through domestic channels rather than relying on Southeast Asian processors. Most significantly, MP Materials announced in July 2025 that it would cease all product sales to China, aligning operations strictly with U.S. national security priorities.

Looking ahead, the company plans to construct the 10X Facility, a massive manufacturing expansion designed to boost U.S. magnet production capacity from 1,000 to 10,000 metric tons annually. This ambitious expansion underscores MP Materials’ commitment to becoming a cornerstone of America’s rare earth supply chain, making it one of the better rare earth stocks for investors with a multi-year horizon.

The Metals Company: Pioneering Seafloor Mineral Recovery

The Metals Company takes a markedly different approach to securing critical minerals, targeting polymetallic nodules on the ocean floor rich in nickel, copper, cobalt, and manganese. The company’s exploration zone is the Clarion-Clipperton Zone in international waters roughly 1,500 miles west of San Diego.

In April 2025, TMC USA—the company’s subsidiary—became the first entity to submit a commercial recovery permit application to NOAA. Recent regulatory progress has accelerated timelines: on January 21, 2026, NOAA finalized rules permitting consolidated applications for both exploration and commercial recovery permits. TMC submitted an expanded application the following day, increasing its proposed operating area from 25,000 to approximately 65,000 square kilometers.

The company projects permit approval by late 2026, with infrastructure deployment targeted for 2027-2028 and commercial production beginning in 2029. While these timelines reflect the lengthy approval process, they also demonstrate TMC’s serious commitment to deep-sea mining. For investors considering rare earth stocks with exposure to next-generation mineral sourcing, TMC presents a speculative but potentially lucrative opportunity.

USA Rare Earth: Government-Partnered Supply Chain Development

USA Rare Earth is constructing a facility in Stillwater, Oklahoma, dedicated to producing sintered Neodymium-Iron-Boron (neo) magnets used extensively in defense, automotive, and industrial applications. The company expects to achieve commercial-scale production during the first quarter of 2026.

A strategic acquisition bolstered the company’s vertical integration: USA Rare Earth purchased Less Common Metals, a United Kingdom-based specialty manufacturer, for $100 million in cash and 6.74 million shares. This deal secures critical feedstock for strip-cast alloy production, reducing dependence on Chinese sources. The company is also developing the Round Top Project in Texas, which harbors substantial deposits of heavy rare earth, gallium, and beryllium—with production potentially commencing in 2028.

Most significantly, on January 25, 2026, the Trump administration announced a $1.6 billion strategic investment in USA Rare Earth, acquiring a 10% equity stake and securing another domestic “mine-to-magnet” supply chain. The investment package includes $1.3 billion in senior secured debt through the CHIPS Act financing facility and $277 million in equity funding, providing the company with substantial capital for expansion. The government received 16.1 million shares and 17.6 million stock warrants exercisable at $17.17 per share, signaling deep confidence in the company’s trajectory.

Evaluating Risk and Return in Rare Earth Stocks

The investment case for these rare earth stocks rests on favorable structural trends: the U.S. commitment to reducing China dependency, government support for domestic production, and rising demand for critical minerals. However, investors must acknowledge the substantial risks inherent in this emerging sector.

These companies are primarily in development or early scaling phases. Mining operations are capital-intensive, and establishing production and processing capabilities demands years of effort, regulatory approval, and continued investment. Market conditions, commodity prices, and geopolitical developments could shift dramatically, affecting profitability and timelines.

For investors considering rare earth stocks, the strategic imperative is clear: allocate only capital you can afford to lose. Treat exposure to this sector as part of a diversified portfolio rather than a concentrated bet. The potential rewards could be substantial for patient investors who can weather volatility, but no outcome is guaranteed.

The Path Forward for Rare Earth Investors

The 2026 landscape for rare earth stocks reflects a pivotal moment in U.S. industrial strategy. MP Materials, The Metals Company, and USA Rare Earth collectively represent America’s multi-pronged approach to breaking Chinese dominance and building resilient domestic supply chains.

Before committing capital to any of these rare earth stocks, conduct thorough due diligence aligned with your risk tolerance and investment timeline. These are emerging opportunities in a transformative sector—not certainties. The best rare earth stocks will likely be those that execute on their strategic plans while managing capital efficiently. For investors with conviction and patience, the next few years could deliver compelling returns, but success is far from assured.