MP Materials Corp.

Key Points
China's domination of rare earth metals is adding value to U.S. mining companies like MP Materials.
MP secured a Pentagon-backed $110/kg NdPr price floor and a $500 million Apple magnet deal in July.
Output is picking up, but profits aren't here yet.
When it comes to rare earth elements, China is constantly reminding markets who controls the spigot.
Indeed, over the last few weeks, Beijing has signaled tighter constraints around exports and processing equipment related to rare earth metals. In response, Washington and allies have stepped up efforts to shore up domestic supplies. Last week, for instance, the U.S. and Australia announced a critical-minerals deal that could reduce (some) reliance on China.
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For companies whose bottom lines rely on rare earth metals, this tension has been nothing short of a headache. For one mining company, however, their scarcity has been a boon for its stock -- MP Materials (NYSE: MP).
The case for MP right now
MP Materials operates the only rare earth metal mine and processing facilities of considerable scale in the U.S. -- the Mountain Pass mine in California. This mine is rich in the kinds of light earth metals that can be refined into neodymium-praseodymium (NdPr) oxide, which is a key ingredient in high-strength magnets.
Historically, MP has relied on Chinese partners to process its raw concentrate into oxides and magnets. Lately, however, with friendly trade between China and the U.S. falling apart, MP has had to cut ties and fast-track its own refining and magnet-making capabilities.
It's a major opportunity for MP to emerge as the U.S.'s go-to source for rare earth magnets, and a big reason that its stock has surged over 300% on the year.
In July, the Pentagon struck a huge deal with the company. It agreed to a 10-year floor price of $110/kg for NdPR -- which is almost 40% higher than prevailing market levels -- and backed that commitment with a $400 million investment in MP. It also signed a long-term purchase agreement to buy all output from MP's next magnet plant.
About a week later, Apple (NASDAQ: AAPL) committed $500 million to expand MP's Texas magnet facility and recycling capabilities. The partnership will see the tech giant receiving U.S.-made recycled magnets for its devices starting in 2027.
Headwinds investors shouldn't ignore
The flip side of all this partnership talk is that MP doesn't have the manufacturing capacity to serve the U.S. market.
Currently, its Fort Worth Independence plant boasts a small output (about 1,000 tons per year), while its second magnet factory (10X Facility) isn't expected to hit full stride until 2028 or beyond.
True, when its 10X facility is up and running, its magnet production will literally multiply by 10 (hence the name) to exceed 10,000 tons produced annually. But building a factory isn't cheap (MP has already secured $1 billion to finance it), and the capital intensity of the project will likely keep MP unprofitable at least through 2026.
Finally, I wouldn't ignore the possibility that the tension at the heart of MP's recent market rally -- rare earth exports from China -- could deescalate, or pause (the U.S. is already expecting China to delay export controls). Although Washington would still likely support building up a domestic supply, the cooling of any urgency could make this red-hot stock -- trading at 48 times sales -- vulnerable to pullbacks.
So, should you buy MP today?
Here's the thing. MP stock ran hard on the Pentagon and Apple headlines, but profits aren't here yet. As the chart below shows, MP is still in its build-out phase.
That said, the company has been improving its total financial picture. In its second quarter, MP's revenue jumped 84% year over year, with a 119% increase in NdPr production. Its loss on an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) basis was $12.5 million. That's not great, but it's better than the $27.1 million loss a year before.
The bullish thesis for MP, then, is that it's the only scaled U.S. producer of rare earth metals with a clearer line of sight to cash flow than similar mining companies that may have a project outlined but are years away from an operational mine.
If MP can execute on its promise, it could grow well into today's high valuation. For long-term investors comfortable with volatility, I'd at least keep this company on your radar. For less volatility, you might want a metal exchange-traded funds (ETF) that could offer exposure to the same rare earth story.
Should you invest $1,000 in MP Materials right now?
Before you buy stock in MP Materials, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and MP Materials wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $590,357!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,141,748!*
Now, it’s worth noting Stock Advisor’s total average return is 1,033% — a market-crushing outperformance compared to 193% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of October 27, 2025
Steven Porrello has positions in MP Materials. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends MP Materials. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Should You Buy MP Materials Stock Right Now?

Key Points
The long-term supply-demand picture should be favorable for critical minerals and rare-earth elements, which should help boost stock prices of select companies.
Mining stocks are particularly risky due to the very high cost and long process of developing and expanding mines.
Buying an exchange-traded fund (ETF) can be a less risky way to gain exposure to critical minerals and rare-earth elements relative to buying individual stocks.
There are good reasons to want to invest in critical minerals and rare-earth elements, which are a subset of critical minerals. Demand for these substances -- which are considered vital to the United States' economic and national security interests -- should continue to increase. (There are 50 minerals on the U.S. critical minerals list, and 54 on a draft for an updated list, and there are 17 rare-earth elements.)
These substances are needed in the manufacturing of many high-growth, advanced technologies, including semiconductors, electric vehicles (EVs), and renewable energy, and by the defense industry.
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The U.S. does not have a dependable supply chain for these minerals, which are largely mined and processed in China. And China has banned or restricted the export of some of these minerals to the U.S. So, the U.S. government is spending some big bucks to develop a more dependable critical minerals supply chain.
The Trump administration has even bought a stake in several publicly traded U.S. companies it considers essential to the nation's national security. This includes three critical minerals companies -- Lithium Americas, Trilogy Metals, and rare-earth elements company MP Materials (NYSE: MP) -- along with semiconductor maker Intel.
Why buy a critical minerals and rare earths ETF over individual stocks?
Mining stocks are particularly risky due to the very high cost and long process of developing and expanding mines. Buying an exchange-traded fund (ETF) can be a less risky way to gain exposure to critical minerals and rare-earth elements relative to buying individual stocks.
That said, another way to use ETFs is to review their holdings to help scout for potentially attractive individual stocks in select industries.
VanEck Rare Earth and Strategic Metals ETF: Overview
VanEck Rare Earth and Strategic Metals ETF (NYSEMKT: REMX), which began trading in 2010, is an index fund designed to track the performance of the MVIS Global Rare Earth/Strategic Metals Index, "which is intended to track the overall performance of companies involved in producing, refining, and recycling of rare earth and strategic metals and minerals."
Companies must derive at least 50% of total revenue from the rare-earth element/strategic metals industry to be added to the Index. The ETF has 29 stock holdings and a net expense ratio of 0.58%, which is reasonable, as of Oct. 23.
VanEck Rare Earth and Strategic Metals ETF: Top 10 stock holdings
Holding No.
Company and Headquarters
Market Cap
Profitable on a TTM Basis?
Weight (% of Portfolio)
YTD 2025 Stock Return
5-Year Stock Return
1
Lynas Rare Earths (OTC: LYSDY), Australia
$12.7 billion
Yes
7.52%
220%
524%
2
Pilbara Minerals (OTC: PILBF),
Australia
$6.8 billion
No
7.18%
58.7%
631%
3
MP Materials, U.S.
$12.5 billion
No. Wall Street expects it to be profitable next year.
7.14%
354%
430%
4
Albemarle (NYSE: ALB), U.S.
$12.4 billion
No. Wall Street expects it to be profitable next year.
7.01%
24.9%
16.1%
5
Lithium Americas (NYSE: LAC), U.S.
$1.7 billion
No. Not yet in the commercialization stage.
6.89%
126%
N/A
6
China Northern Rare Earth Group, China
185 billion yuan = approx. $26 billion
Yes
6.49%
141%*
388%*
7
Liontown Resources, Australia
$2.4 billion
No
5.14%
133%
325%
8
Iluka Resources, Australia
$2.2 billion
Yes
5.07%
60.3%
156%
9
Ganfeng Lithium, China
$17.2 billion
No
5.00%
128%
10
Sociedad Quimica y Minera (SQM), Chile
$12.9 billion
Yes
4.76%
25.3%
49.3%
Total top 10
N/A
N/A
N/A
62.20%
N/A
N/A
Overall ETF
N/A
Total net assets of $1.38 billion
N/A
100%
88.4%
97.3%
N/A
S&P 500 Index
N/A
N/A
N/A
16.7%
111%
Data sources: VanEck Rare Earth and Strategic Metals ETF, Yahoo! Finance, and YCharts. *Gain in Chinese yuan (CNY); stock is neither listed in nor traded over the counter (OTC) in the U.S. TTM = trailing 12 months. YTD = year to date. Data as of Oct. 24, 2025, except for weightings data, which is as of Oct. 23, 2025.
Brief descriptions for the top five holdings:
Lynas Rare Earths (No. 1) mines for rare-earth minerals at its Mt. Weld mine in Australia and produces rare-earth materials at its processing plants in Australia and Malaysia.
Pilbara Minerals (No 2) operates lithium mining operations in Australia and Brazil. It also produces tantalite as a byproduct.
MP Materials (No. 3) operates Mountain Pass in California, the only rare-earth elements mining operation in the U.S. The company produces rare-earth magnets and materials in Texas.
Albemarle (No. 4) is a lithium miner with its primary mining operations in Chile and -- via a joint venture -- Australia. It also operates the only lithium mining operation in the U.S., Silver Peak in Nevada.
Lithium Americas (No. 5) is a pre-commercialization stage company that's developing the Thacker Pass lithium mining operation in Nevada.
Should you invest $1,000 in VanEck ETF Trust - VanEck Rare Earth And Strategic Metals ETF right now?
Before you buy stock in VanEck ETF Trust - VanEck Rare Earth And Strategic Metals ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and VanEck ETF Trust - VanEck Rare Earth And Strategic Metals ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $590,357!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,141,748!*
Now, it’s worth noting Stock Advisor’s total average return is 1,033% — a market-crushing outperformance compared to 193% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of October 20, 2025
Beth McKenna has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intel. The Motley Fool recommends Lynas Rare Earths Ltd and MP Materials and recommends the following options: short November 2025 $21 puts on Intel. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Interested in Rare Earth and Critical Minerals Stocks? You Might Consider Buying This ETF

Key Points
Apple's reliance on Chinese manufacturing facilities makes it vulnerable to tariffs.
Apple CEO Tim Cook has publicly worked to placate both the China and U.S. governments.
If a trade deal isn't reached by Nov. 1, Apple's access to critical iPhone components could be at risk.
Tariffs are a headache for any company that relies on overseas manufacturing. That includes device maker Apple (NASDAQ: AAPL).
Earlier this year, Apple CEO Tim Cook projected that tariffs would cost the company $1.1 billion in the third quarter. But it could be about to get even worse for Apple thanks to a new potential front that's opened up in the trade war.
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Here's what investors need to know.
Threading the needle
Thus far, Cook has done an admirable job of placating both Beijing and Washington to avoid the worst of the tariff fallout from both sides, mostly by promising to spend more money in both countries.
Last week, for example, Cook visited China and met with industry minister Li Lecheng. The Chinese government's official summary of the meeting says that Cook pledged to increase Apple's investment in China by an unspecified amount, while Lecheng said China would continue to provide a positive business environment for foreign companies like Apple.
Cook has also curried favor with President Donald Trump. In August, Cook presented him with a custom-made plaque on a 24-carat gold pedestal to commemorate his commitment to domestic manufacturing. As part of that initiative, Apple has committed to investing $600 billion in U.S. manufacturing.
So far, Cook's hard work seems to be paying off. In August, when the Trump administration increased tariffs on Indian imports to 50%, smartphones were exempted. That was a major win for Apple and its manufacturing facilities in India. But the most recent chapter in the trade war -- a spat over rare earth elements -- may not turn out so well for the device maker.
Why it matters to Apple
iPhones and iPads, like many electronic devices, are packed with rare earth elements like neodymium and dysprosium, which make it possible to miniaturize electrical components so they'll fit inside a handheld device. Other rare elements like yttrium and europium are critical components of color screens. Without these elements, it would be harder to see the color red on your smartphone screen, and impossible for it to vibrate when you receive a call.
China is the world's largest source for many of these critical minerals. It possesses almost 70% of the world's rare earth mining capacity and about 90% of its rare earth processing capacity. Control over these critical resources has given China a unique piece of leverage in its escalating trade war with the U.S.
Earlier this month, China's Ministry of Commerce announced it would require foreign companies to get special approval from the Chinese government to export items containing even small amounts of rare earth elements. If the rule goes into effect on Nov. 1 as scheduled, it could be very bad for Apple. In response, Trump threatened to impose an additional 100% tariff on China -- over and above the 57% tariffs it's currently levying -- as well as to impose export controls on "any and all critical software," which could be even worse for the device maker.
However, none of this seems to have mattered to Apple's stock price, which is currently trading around an all-time high:
More bark or more bite
The ultimate consequences for Apple from Trump's tariffs on China and China's retaliatory restrictions on rare earth elements should become clear next week.
Trump has set a Nov. 1 deadline for a trade deal to be reached between the U.S. and China, or the additional 100% tariffs will kick in. Trump is expected to meet with Chinese president Xi Jinping on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in South Korea on Oct. 31 or Nov. 1. Trump has predicted a "fantastic trade deal" will result from this strategy.
If such a deal doesn't materialize, Apple won't be alone in feeling the pain. Device makers, electric vehicle battery manufacturers, and makers of military hardware, among many others, all rely on rare earth elements with limited supply options. Companies, including Apple, are scrambling to find other sources for these minerals. In July, Apple announced a $500 million partnership with MP Materials to launch a U.S. recycling facility for rare earth magnets, which would help to improve domestic supply of the critical materials. Too bad that project won't even ship its first magnets until 2027.
Perhaps Cook's goodwill gestures toward the White House and Beijing will keep Apple insulated from any potential tariff fallout. But I wouldn't be surprised to see Apple's stock take a hit if a deal isn't reached by Nov. 1.
Should you invest $1,000 in Apple right now?
Before you buy stock in Apple, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Apple wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $590,357!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,141,380!*
Now, it’s worth noting Stock Advisor’s total average return is 1,033% — a market-crushing outperformance compared to 193% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of October 20, 2025
John Bromels has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends MP Materials. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is Apple Going to Be Hit Hard by President Trump's Tariffs?

Key Points
The U.S. and Australia signed a critical materials agreement earlier this week.
Shares of MP Materials are trading at a premium to their historical valuation.
The stock's pullback provides a buying opportunity for long-term investors.
Prior to the start of this week, MP Materials (NYSE: MP) stock had performed well in October, climbing more than 20%. This week, however, the market showed that there is a limit to the exuberance it has for rare earth stocks. In addition to President Trump signing a critical materials agreement with Australian Prime Minister Anthony Albanese earlier this week, investors are sensing that the valuation of MP Materials stock has become too rich, motivating them to move away from it.
According to data provided by S&P Global Market Intelligence, shares of MP Materials are down 12.1% from the end of last Friday's trading session through 10:40 a.m. ET today.
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Digging into the causes for shares of MP Materials plunging lower
On Monday, President Trump and Australian Prime Minister Anthony Albanese signed an agreement that will see each nation commit $1 billion over the next six months to various critical minerals operations, in addition to setting a minimum price floor for critical minerals.
Lauding the deal, President Trump stated, "In about a year from now, we'll have so much critical mineral and rare earths that you won't know what to do with them."
Separate from news of the agreement with Australia, the fact that MP Materials stock had soared to a lofty valuation led investors to push the pause button on buying activity. Currently, MP Materials stock is still richly valued, trading at 46.3 times sales, a premium to its five-year average price-to-sales ratio of 14.8.
Is now a good time to load up on MP Materials stock?
The fact that investors have turned away from MP Materials stock this week is hardly surprising. With President Trump's claim that rare earth supply will soon be plentiful, investors are speculating that the price of rare earths will drop and adversely affect the profitability of the rare earth mining stock.
However, for those with long-term investing horizons, the stock's pullback provides a great buying opportunity, since the company is an industry leader poised for growth in the coming years.
Should you invest $1,000 in MP Materials right now?
Before you buy stock in MP Materials, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and MP Materials wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $600,550!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,116,616!*
Now, it’s worth noting Stock Advisor’s total average return is 1,032% — a market-crushing outperformance compared to 192% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of October 20, 2025
Scott Levine has no position in any of the stocks mentioned. The Motley Fool recommends MP Materials. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why Shares of MP Materials Are Sinking This Week

Below is Validea's guru fundamental report for MP MATERIALS CORP (MP). Of the 22 guru strategies we follow, MP rates highest using our Small-Cap Growth Investor model based on the published strategy of Motley Fool. This strategy looks for small cap growth stocks with solid fundamentals and strong price performance.
MP MATERIALS CORP (MP) is a large-cap growth stock in the Metal Mining industry. The rating using this strategy is 56% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of MP MATERIALS CORP
MP Guru Analysis
More Information on Motley Fool
About Motley Fool: Brothers David and Tom Gardner often wear funny hats in public appearances, but they're hardly fools -- at least not the kind whose advice you should readily dismiss. The Gardners are the founders of the popular Motley Fool web site, which offers frank and often irreverent commentary on investing, the stock market, and personal finance. The Gardners' "Fool" really is a multi-media endeavor, offering not only its web content but also several books written by the brothers, a weekly syndicated newspaper column, and subscription newsletter services.
Additional Research Links
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Validea Detailed Fundamental Analysis - MP

(1:00) - What Are Rare Earth Materials That Investors Should Know About
(8:30) - How Did China Create A Monopoly For Rare Earth Materials?
(13:40) - What Are Other Countries Doing To Strengthen their Supply Chains?
(18:35) - VanEck Rare Earth and Strategic Metals ETF: REMX
(24:00) - Where Should Investors Be Looking To Buy Right Now?
(28:40) - Episode Roundup: GDX, GDXJ, SMH, NLR
In this episode of ETF Spotlight, I speak with Brandon Rakszawski, Director of Product Management at VanEck, about rare earths, which have become a new battleground in the trade war with China. Rare earths, a group of 17 metallic elements, are actually quite common in the Earth’s crust, but their extraction and refining are costly, complex, and harmful to the environment. Because of their optical, magnetic, and electrical properties, these minerals have become critical inputs across many sectors, including defense, clean technology, smartphones, and data centers. China currently controls about 90% of global rare earth production and the refining of rare and other strategic metals. Given the importance of these materials and China’s dominance, many nations are working to build alternative supply chains, though such efforts will likely take years to meaningfully reduce dependence on China. The VanEck Rare Earth and Strategic Metals ETF REMX invests in companies involved in the production, refining, and recycling of rare earth and strategic metals and minerals. It has surged almost 80% year to date. Its top holding, MP Materials MP, recently received a $400 million equity investment from the Department of Defense, making the government its largest shareholder. Apple (AAPL) also signed a $500 million deal to purchase rare earth minerals from MP Materials. Brandon is also bullish on areas such as nuclear energy and semiconductors. Investors may want to take a look at the VanEck Semiconductor ETF (SMH) and the VanEck Uranium and Nuclear ETF (NLR). Tune in to the podcast to learn more. Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email podcast@zacks.com.In this episode of ETF Spotlight, I speak with Brandon Rakszawski, Director of Product Management atVanEck, about rare earths, which have become a new battleground in the trade war with China.Rare earths, a group of 17 metallic elements, are actually quite common in the Earth’s crust, but theirextraction and refining are costly, complex, and harmful to the environment.Because of their optical, magnetic, and electrical properties, these minerals have become critical inputsacross many sectors, including defense, clean technology, smartphones, and data centers.China currently controls about 90% of global rare earth production and the refining of rare and otherstrategic metals. Given the importance of these materials and China’s dominance, many nations areworking to build alternative supply chains, though such efforts will likely take years to meaningfully reducedependence on China.The VanEck Rare Earth and Strategic Metals ETF (REMX) invests in companies involved in theproduction, refining, and recycling of rare earth and strategic metals and minerals. It has surged almost80% year to date.Its top holding, MP Materials (MP), recently received a $400 million equity investment from theDepartment of Defense, making the government its largest shareholder. Apple (AAPL) also signed a $500million deal to purchase rare earth minerals from MP Materials.Brandon is also bullish on areas such as nuclear energy and semiconductors. Investors may want to takea look at the VanEck Semiconductor ETF (SMH) and the VanEck Uranium and Nuclear ETF (NLR).Tune in to the podcast to learn more. Make sure to be on the lookout for the next edition of ETF Spotlight!If you have any comments or questions, please email podcast@zacks.com.In this episode of ETF Spotlight, I speak with Brandon Rakszawski, Director of Product Management atVanEck, about rare earths, which have become a new battleground in the trade war with China.Rare earths, a group of 17 metallic elements, are actually quite common in the Earth’s crust, but theirextraction and refining are costly, complex, and harmful to the environment.Because of their optical, magnetic, and electrical properties, these minerals have become critical inputsacross many sectors, including defense, clean technology, smartphones, and data centers.China currently controls about 90% of global rare earth production and the refining of rare and otherstrategic metals. Given the importance of these materials and China’s dominance, many nations areworking to build alternative supply chains, though such efforts will likely take years to meaningfully reducedependence on China.The VanEck Rare Earth and Strategic Metals ETF (REMX) invests in companies involved in theproduction, refining, and recycling of rare earth and strategic metals and minerals. It has surged almost80% year to date.Its top holding, MP Materials (MP), recently received a $400 million equity investment from theDepartment of Defense, making the government its largest shareholder. Apple (AAPL) also signed a $500million deal to purchase rare earth minerals from MP Materials.Brandon is also bullish on areas such as nuclear energy and semiconductors. Investors may want to takea look at the VanEck Semiconductor ETF (SMH) and the VanEck Uranium and Nuclear ETF (NLR).Tune in to the podcast to learn more. Make sure to be on the lookout for the next edition of ETF Spotlight!If you have any comments or questions, please email podcast@zacks.com.
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VanEck Rare Earth/Strategic Me (REMX): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

What's Driving the Surge in Rare Earth Stocks

Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in EOS Energy Enterprises Inc (Symbol: EOSE), where a total of 149,118 contracts have traded so far, representing approximately 14.9 million underlying shares. That amounts to about 60.1% of EOSE's average daily trading volume over the past month of 24.8 million shares. Especially high volume was seen for the $18 strike call option expiring October 24, 2025, with 9,863 contracts trading so far today, representing approximately 986,300 underlying shares of EOSE. Below is a chart showing EOSE's trailing twelve month trading history, with the $18 strike highlighted in orange:
Spotify Technology SA (Symbol: SPOT) options are showing a volume of 8,025 contracts thus far today. That number of contracts represents approximately 802,500 underlying shares, working out to a sizeable 56.1% of SPOT's average daily trading volume over the past month, of 1.4 million shares. Particularly high volume was seen for the $695 strike call option expiring October 24, 2025, with 651 contracts trading so far today, representing approximately 65,100 underlying shares of SPOT. Below is a chart showing SPOT's trailing twelve month trading history, with the $695 strike highlighted in orange:
And MP Materials Corp (Symbol: MP) saw options trading volume of 113,606 contracts, representing approximately 11.4 million underlying shares or approximately 55% of MP's average daily trading volume over the past month, of 20.7 million shares. Especially high volume was seen for the $82 strike call option expiring October 24, 2025, with 9,319 contracts trading so far today, representing approximately 931,900 underlying shares of MP. Below is a chart showing MP's trailing twelve month trading history, with the $82 strike highlighted in orange:
For the various different available expirations for EOSE options, SPOT options, or MP options, visit StockOptionsChannel.com.
Also see:
Top Ten Hedge Funds Holding QNST
Arch Capital Group YTD Return
Top Ten Hedge Funds Holding WLT
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable Tuesday Option Activity: EOSE, SPOT, MP

Below is Validea's guru fundamental report for MP MATERIALS CORP (MP). Of the 22 guru strategies we follow, MP rates highest using our Quantitative Momentum Investor model based on the published strategy of Wesley Gray. This momentum model looks for stocks with strong and consistent intermediate-term relative performance.
MP MATERIALS CORP (MP) is a large-cap growth stock in the Metal Mining industry. The rating using this strategy is 66% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of MP MATERIALS CORP
MP Guru Analysis
More Information on Wesley Gray
About Wesley Gray: Wesley Gray is the founder of Alpha Architect and the author (along with co-author Jack Vogel) of "Quantitative Momentum A Practitioner's Guide to Building a Momentum-Based Stock Selection System". He is also the author (along with co-author Tobias Carlisle) of "Quantitative Value: A Practitioner's Guide to Automating Intelligent Investment and Eliminating Behavioral Errors". He is an industry recognized expert in the application of quantitative investing strategies. Wes is also a former Marine and has his Phd from the Univerisity of Chicago, where he studied under Nobel Prize winner Eugene Fama.
Additional Research Links
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

MP Quantitative Stock Analysis

The hottest trade of late hasn’t been in AI, instead, stocks of companies that are engaged in the production or servicing of rare earth minerals and elements have taken the spotlight.
While the market had been on edge amid reemerging trade war fears, “rare earth” stocks have gained more momentum from the increased tensions between the U.S and China.
To that point, the U.S.-China friction has intensified around rare earth minerals, which are critical for defense and tech industries, including for the production of electric vehicles and semiconductors.
Dominating the rare earth supply chain for quite some time, China’s tariff retaliation has also centered on tighter export restrictions for these essential commodities. In response, the U.S. has planned to ramp up domestic production and has even made direct investments in publicly traded mining and critical element producing companies.
These strategic investments led the initial surge in rare earth stocks with JPMorgan JPM recently adding to the optimism by announcing a $1.5 trillion “Security and Resilience Initiative” to help as well.
Keeping this scenario in mind, investors are certainly wondering if they should ride the rare earth stock’s trade wave.
The U.S. Government’s Direct Investments
Focusing on critical minerals and national security, the U.S. government has taken direct equity stakes in several mining companies, which have all seen their stocks soar well over +100% in 2025.
Lithium Americas - LAC
Stock Price & YTD Gains: $6, +135%
Although Lithium Americas LAC is a Canadian-based company, it has critical mineral projects in the U.S. that are essential to the nation’s ability to produce such rare resources. With the U.S. taking a 5% stake in Lithium Americas, the mining company’s Thacker Project in Nevada is on track to be one of the largest sources of lithium in North America. Notably, lithium is crucial for EV production and the excitement for Lithium America’s stock has taken off despite expectations of an adjusted loss of around $0.20 per share or more for the foreseeable future. Still, fiscal 2026 EPS estimates have remained slightly higher in the last 60 days landing LAC shares a Zacks Rank #3 (Hold) as the possibility of Lithium Americas being lifted above the probability line has become more likely.
Trilogy Metals - TMQ
Stock Price & YTD Gains: $6, +434%
Yes your seeing that right, this was a penny stock that has skyrocketed over +400% after trading under $1 earlier in the year. Also based in Canada, the U.S. has a 10% stake in Trilogy Metals TMQ to support the development of its Ambler mining district project in Alaska, which is rich in copper, cobalt, and geranium.
TMQ shares also land a Zacks Rank #3 (Hold) as earnings estimate revisions have remained unchanged over the last quarter but the metal exploration company is actually closer to posting positive EPS sooner than Lithium Americas.
MP Materials - MP
Stock Price & YTD Gains: $82, +427%
Headquartered in Nevada, MP Materials MP has long been on the radar as one of the more popular mining stocks. Producing rare earth materials in the Western Hemisphere, the U.S. has taken a 15% equity stake in MP Materials. That said, the rally in MP Materials stock appears to be overdone with MP shares trading over $80 after soaring more than +400% YTD. It might be a good time to take profits in MP as FY25 and FY26 EPS estimates are both lower in the last 60 days. Correlating with such, MP lands a Zacks Rank #4 (Sell).
MP Materials is projected to swing into the black next year and post positive EPS of $0.92 but estimates are down from $0.96 two months ago. Plus, this would still leave MP Materials at a very high forward P/E valuation despite moving further away from the speculative growth phase since going public in 2020.
USA Rare Earth Stock Soars on China’s Export Controls
Launching its IPO in March, USA Rare Earth’s USAR stock has attracted investors interest as one of the few companies aiming to produce rare earth magnets solely in the U.S., a key component in electric motors and military systems.
Furthermore, USA Rare Earth’s new CEO Babara Humpton has sparked investor sentiment after hinting that management is in close communication with the White House amid the Trump administration’s goal to cut China’s dominance over rare earth minerals. Fueling speculation about a potential government partnership, USAR shares have rallied more than +100% in the last month to over $30 and are now sitting on pleasant IPO gains of +70%.
Image Source: Zacks Investment Research
USA Rare Earth is not yet profitable, but is projected to post a smaller adjusted EPS loss of -$0.32 in FY26 with FY25 estimates currently at -$0.82 per share. USAR has a Zacks Rank #3 (Hold) as FY26 EPS revisions are sharply up from projections of -$0.54 earlier in the quarter although FY25 EPS estimates are down from -$0.60.
Image Source: Zacks Investment Research
Cleaveland-Cliff’s Q3 Report
It’s noteworthy that Cleveland-Cliffs CLF has entered the rare earth stock trade after announcing a bold pivot into the space during its Q3 report on Monday morning. CLF surged more than +20% in today’s trading session to $16 a share as Cleaveland-Cliffs stated it would explore rare earth mineral production at its mining sites in Michigan and Minnesota.
Able to exceed earnings expectations, Cleveland-Cliffs posted an adjusted loss of -$0.50 a share compared to Q3 EPS estimates of -$0.68. The EPS surprise was attributed to robust demand for its U.S.-produced steel thanks to President Trump’s 50% tariff on imported steel. However, Cleveland-Cliffs came short of Q3 sales estimates of $4.88 billion by 3% with CLF currently landing a Zacks Rank #4 (Sell). Hopefully a trend of declining EPS revisions for FY25 and FY26 will begin to turnaround, especially as Cleaveland-Cliffs is expected to be unprofitable for the time being.
Image Source: Zacks Investment Research
Conclusion & Final Thoughts
Not to doubt the emerging importance and relevance of these rare earth stocks, but there could certainly be better buying opportunities ahead as most of them are in the speculatory growth phase. Obviously, a higher risk tolerance will be needed for those who choose to invest in these rare earth companies but they make for a great watchlist of buy the dip targets.
#1 Semiconductor Stock to Buy (Not NVDA)
The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.
One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Ride the Rare Earth Stock's Trade Wave?

Key Points
The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average have all hit new highs in 2025 -- and even the federal government is benefiting from it.
President Trump's administration has taken complex equity stakes in four public companies since July in the semiconductor and rare-earth metals arenas.
Government stakes in public companies can lead to conflicts of interest that may not favor investors.
Though 2025 got off to a rocky start on Wall Street, it's shaping up to be another banner year for the stock market. Recently, the widely followed S&P 500 (SNPINDEX: ^GSPC), growth-fueled Nasdaq Composite (NASDAQINDEX: ^IXIC), and iconic Dow Jones Industrial Average (DJINDICES: ^DJI) all hit fresh record highs.
Investors who've stayed the course and remained optimistic have demonstrably benefited -- and this now includes the federal government.
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While the U.S. government has, on rare occasions in the past, dipped its toes into the pond as an investor, President Donald Trump's administration is breaking the mold, and not necessarily in a good way.
During the financial crisis, the Troubled Asset Relief Program, better known as TARP, allowed the Treasury Department to establish equity stakes in troubled financial institutions. Meanwhile, during the COVID-19 pandemic, the U.S. Treasury received stock warrants from some major airlines as partial compensation for the financial assistance they were provided.
The Trump administration has taken equity stakes in four public companies without there being a financial emergency, which is both unique and a potentially dangerous precedent.
President Trump's administration has invested in four skyrocketing stocks
The highlight of the Trump administration's investing foray is undoubtedly its $8.9 billion stake taken in semiconductor behemoth Intel (NASDAQ: INTC). Though Intel had already been granted funds from the U.S. CHIPS and Sciences Act (it had received $2.2 billion, as of Aug. 22), the remaining $5.7 billion in grants, coupled with $3.2 billion awarded to the company via the Secure Enclave program, were converted to an investment in Intel's common stock. This works out to a 9.9% stake in the company.
Additionally, the Trump administration received a five-year warrant that allows for the purchase of an additional 5% of Intel's outstanding shares at $20/share if Intel's ownership in its foundry business falls below 51%.
The purpose of this investment is simple: The president and his administration want chip production to occur in the U.S. and not overseas. This capital should help fuel Intel's foundry ambitions, where it aims to become the world's No. 2 chip fabricator.
But Intel is just the tip of the iceberg, with the Trump administration investing in three other publicly traded companies.
On July 10, rare-earth metals producer and processor MP Materials (NYSE: MP) announced a complex, multibillion-dollar deal with the U.S. Department of Defense (DOD) that saw it become the company's largest shareholder. The investments made by the DOD will seed the construction of a second magnet manufacturing facility in the U.S., which is expected to open in 2028.
Furthermore, the DOD established a 10-year offtake agreement to purchase all magnets from this new facility, once complete, as well as set a price floor commitment of $110 per kilogram for MP Materials' neodymium-praseodymium oxide production. This investment is a direct attempt to keep China from accessing even more rare-earth metals.
In early October, the U.S. Department of Energy (DOE) announced it would take a 5% stake in Lithium Americas (NYSE: LAC), which operates one of the world's largest lithium mines in Nevada. The DOE is also taking a 5% stake in a joint venture between Lithium Americas and General Motors for the Thacker Pass lithium mine, also located in the Silver State.
Lithium is a necessary metal used in next-generation batteries found in smartphones and electric vehicles.
Lastly, on Oct. 6, metals and minerals miner Trilogy Metals (NYSEMKT: TMQ) announced a $35.6 million investment from the Department of Defense, which Trump in early September rebranded the Department of War. Trilogy, a Canadian-based mining company, holds a 50% interest in Ambler Metals, which has total control of the Upper Kobuk Mineral Projects in Alaska.
The government will purchase more than 8.2 million shares of Trilogy at $2.17/share for a cost of approximately $17.8 million, as well as receive 10-year warrants that can further increase its stake.
Federal government ownership of stocks can be a slippery slope for Wall Street and investors
On the surface, the federal government taking equity stakes in publicly traded companies would appear to be fantastic news. From afar, it exudes confidence in the domestic semiconductor industry and looks to be a viable attempt to ensure that America can secure rare-earth metals at attractive prices in the future.
But all is not what it appears if investors dig beneath the surface.
In 2012, Congress passed, and then-President Barack Obama signed, the Stop Trading on Congressional Knowledge (STOCK) Act into law. The STOCK Act was designed to stop members of Congress and leading government officials from placing stock trades with inside information. Under this act, members of Congress and leading government officials are required to publicly report their trades in excess of $1,000 no later than 45 calendar days following a transaction.
Despite the STOCK Act becoming law, eyebrow-raising trades continue to be made by members of Congress who help establish the laws that directly impact the companies they're investing in.
Take this potential conflict of interest and magnify it 100-fold, and you have the dangerous precedent being set by the Trump administration's investments in Intel, MP Materials, Lithium Americas, and Trilogy Metals.
Even though U.S. Commerce Secretary Howard Lutnick assured investors in an interview with CNBC (prior to his administration taking a stake in Intel) that any stakes taken would be nonvoting for the U.S. government, this doesn't mean the Trump administration doesn't exert sway over the boards and executive teams at these four companies.
In addition to Congress crafting the fiscal policy and laws that can directly impact these businesses, President Trump has demonstrated a willingness to use U.S. businesses and/or products as bargaining chips for his tariff and trade policy demands.
To add fuel to the fire, it's a stretch to say that all four of these public companies needed capital from the Trump administration.
For example, Intel had already been granted $7.86 billion from the CHIPS Act, and has generated over $10 billion in cash flow from its operations over the trailing-12-month period. It wasn't hurting for capital, but had its hands tied by the federal government altering the nature of its remaining CHIPS Act grants.
While the investments we've witnessed in Intel, MP Materials, Lithium Americas, and Trilogy Metals have sent these respective stocks soaring in recent months, they aren't cause for cheer from Wall Street or investors.
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Sean Williams has positions in Intel. The Motley Fool has positions in and recommends Intel. The Motley Fool recommends General Motors and MP Materials and recommends the following options: short November 2025 $21 puts on Intel. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

MP Materials Corp.

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