MP Materials Corp.

Слабый индекс, значительно упал. Быки продолжают терять уверенность.

Weak index, significantly down. Bulls continue to lose confidence.

Сильный индекс, незначительно упал. Рынок не поддерживает быков.

Strong index, slightly down. The market does not support the bulls.

Средний индекс, незначительно упал. Отток средств из лонгов увеличился и находится на высоком уровне.

Medium index, slightly down. The outflow of funds from longs has increased and is at a high level.

Key Points
MP Materials and USA Rare Earth have distinct risk profiles and focus on different rare-earth magnets.
USA Rare Earth offers higher risk and potential reward than MP Materials.
A diversified approach may be best for exposure to the rare-earth sector.
It's MP Materials (NYSE: MP) versus USA Rare Earth (NASDAQ: USAR) in the great debate over which is the leading rare-earth company that will solve the problem of securing a domestic supply. The two companies have key differences, which means they will work differently in your portfolio. Here's why, and a suggestion for how to invest in the sector.
The key differences between MP Materials and USA Rare Earth
Both companies have received substantive backing from the U.S. government, and understandably so. China dominates the rare-earth market, and given the critical importance of rare-earth magnets to the global economy, it's a matter of national security to ensure that the U.S. defense and manufacturing sectors have access to domestically produced, non-China-sourced rare-earth magnets.
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According to USA Rare Earth CFO William Steele, "China dominates well in excess of 90% of the market, in fact, up to 99% of certain rare-earth going forward." China has an even more dominant position in the heavy rare-earth elements (HREE), with USA Rare Earth CEO Barbara Humpton noting on a shareholder call in April: "Dysprosium and terbium generally represent 20% of global rare-earth volume, but over 90% of the value. And critically, China today processes nearly 100% of these heavy rare-earth."
All of which leads to the key differentiator between MP Materials and USA Rare Earth. The former focuses on light rare-earth elements (LREE) such as neodymium (Nd) and praseodymium (Pr). In contrast, USA Rare Earth focuses on heavy rare-earth elements such as dysprosium (Dy) and terbium (Tb).
In general, LREEs are more abundant than HREEs, and the latter command much higher pricing. While China dominates both markets, it has a chokehold on the HREE market, as Humpton's comments above allude to. In addition, HREE magnets are more expensive and technically demanding to produce, and HREEs are also harder to source.
That makes USA Rare Earth arguably more strategically important than MP Materials, with greater upside potential, but it also makes it a far riskier stock in terms of operational execution.
MP Materials is more advanced in its business model
USA Rare Earth is also riskier: While both companies are pursuing a mine-to-magnet strategy, MP Materials is significantly more advanced. It already produces rare-earth magnets at its Fort Worth, Texas, facility and has two foundational customers: Apple and General Motors. In addition, its LREE-rich Mountain Pass is already operational and supplying elements. Furthermore, MP Materials has already begun construction of its new "10X" facility in Northlake, Texas. The facility is a key part of the company's growth plans, and also a cornerstone of the public-private partnership with the Department of Defense.
In contrast, USA Rare Earth entered magnet production in the second quarter of this year, with its first magnet sales expected by year-end. As for the "mine" part of the mine-to-magnet strategy, the company has secured a 100% ownership interest in the HREE-rich Round Top deposit in Texas. It is targeting commercial operations in late 2028.
The risks are reflected in valuations
In a nutshell, USA Rare Earth is a higher-risk, higher-return proposition than MP Materials, and that's reflected in the valuations implied by Wall Street analysts' estimates for the stocks. As you can see below, the additional risk at USA Rare Earth is reflected in its significantly lower valuation based on analyst consensus.
Forward Price-to-Earnings Ratio
2026
2027
2028
2029
2030
MP Materials
N/A
65.8
42.6
31.4
23
USA Rare Earth
N/A
N/A
48.4
26.6
7.1
Note that these valuations project a lot into the future and assume both companies execute on their growth plans.
USA Rare Earth and MP Materials
The answer to the question in the headline is "no." However, that's not because MP Materials is a noticeably better investment than USA Rare Earth. Instead, it's a significantly different investment proposition that will suit more conservative investors. At the same time, USA Rare Earth offers greater upside potential to offset the significantly higher risk of ramping up HREE magnet production, commissioning Round Top, and developing customer relationships.
If forced to choose, I think USA Rare Earth is better on a risk/reward basis, but the best strategy for rare-earth bulls may well be to buy both in a diversified portfolio.
Should you buy stock in MP Materials right now?
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Should You Ignore MP Materials and Buy This Rare-Earth Stock Instead?

MP Materials MP is trading at a forward 12-month price/sales multiple of 14.29X, significantly above the industry average of 1.43X. The stock carries a Value Score of F, suggesting it is expensive at current levels.
Among rare earth peers, USA Rare Earth, Inc. USAR and Lynas Rare Earths Limited LYSDY trade at considerably lower 8.31X and 9.43X, respectively.
MP Materials Stock Trails Industry Performance
MP Materials shares have declined 12.8% over the past six months against the industry’s 8.7% growth. The Zacks Basic Materials sector gained 3% while the S&P 500 rose 12.8%. Lynas Rare Earths and USA Rare Earth have declined 24.1% and 19.1%, respectively.
MP's 6-Month Performance Against Industry, Sector, S&P 500 & Peers
Image Source: Zacks Investment Research
The stock’s premium valuation appears difficult to justify given its recent underperformance. However, MP Materials is undergoing a significant transition toward higher-value rare earth products and domestic magnet production. Its latest financial results, production ramp-up, growth initiatives and execution risks provide important clues about whether the premium can be sustained.
MP Delivered Revenue Growth in Q2, Costs Remain Elevated
MP generated second-quarter 2026 total revenues of $108.5 million, up 89% year over year. The company also recognized $17.6 million in income related to a price protection agreement (PPA) with the Department of War (DoW).
Materials segment revenues surged 155% to $95.6 million, driven by higher NdPr sales volumes and pricing, although the absence of concentrate sales partly offset the gains. Magnetics segment revenues fell 17% to $16.5 million, as the start-up of magnet production and related pricing mechanisms weighed on results despite higher production of magnetic precursor products at the Independence facility.
Cost of sales climbed 43% due to higher sales volumes, while selling, general and administrative expenses rose 28% due to increased personnel costs. Start-up costs surged to $14 million from $0.76 million in the year-ago quarter due to the ramp-up of start-up activities for magnet production and chlor-alkali facilities, and costs associated with initial production of magnets at Independence.
Higher costs led to an operating loss of $32 million in the quarter, narrower than the loss of $43.9 million in the year-ago quarter. This was the 12th consecutive quarter of operating loss for the company, reflecting ongoing margin pressure as it continues transitioning toward higher-value separated rare earth products.
MP reported an adjusted loss of one cent per share in the second quarter of 2026, a significant improvement from the loss of 13 cents in the year-ago quarter.
MP Ramps Up NdPr and Advances Magnet Production
NdPr production increased 41% year over year to 840 metric tons in the second quarter of 2026 despite a scheduled semiannual maintenance outage at Mountain Pass. Management expects third-quarter 2026 NdPr production to exceed 1,000 metric tons as throughput and plant reliability improve.
MP remains on track to begin producing terbium and dysprosium later this year and first samarium production is targeted for 2028. The company recently entered into a multiyear agreement to supply gadolinium oxide to a leading U.S. aerospace and defense manufacturer.
Meanwhile, MP Materials is progressing with its magnet manufacturing operations. During the second quarter, MP Materials delivered magnets to General Motors Company GM for in-vehicle qualification testing and expects to begin commercial shipments in the fourth quarter, followed by a steady production ramp.
MP’s Earnings Estimates Trend Lower Cautious Investor Sentiment
The Zacks Consensus Estimate for MP Materials’ 2026 earnings stands at eight cents per share against a loss of 24 cents in 2025. The 2027 earnings estimate is currently pegged at 88 cents per share, implying growth of 1,009%.
Image Source: Zacks Investment Research
However, the earnings outlook has weakened recently, with consensus estimates for both 2026 and 2027 revised downward over the past 90 days.
Image Source: Zacks Investment Research
Capacity Expansion Creates Long-Term Growth Potential for MP
The company is expanding operations at its Independence facility and has begun construction of the 10X magnetics facility. Commissioning activities for scaled heavy rare earth separation are also expected to begin soon at Mountain Pass. 10X will significantly expand MP’s fully integrated U.S. rare-earth magnetics manufacturing platform, which already encompasses mining and refining, metallization and alloying, sintering, finished magnet production and closed-loop recycling. Once operational, the new campus is expected to contribute to the company’s total production capacity of approximately 10,000 metric tons of NdFeB rare-earth magnets per year, advancing the nation’s ability to produce these strategic components domestically.
MP Materials has also worked with U.S. and allied drone manufacturers to launch Project Swarm, an industrial coordination initiative designed to aggregate and standardize future magnet demand. It has already signed subscription agreements with several participants. The company’s partnership with Apple AAPL on magnet recycling, magnet production and joint development also continues to advance.
High Costs and Execution Risks Could Limit Near-Term Upside
Producing separated rare earth products and magnetic materials involves significantly higher costs than concentrate production due to additional processing requirements, chemical inputs, labor and maintenance. Cost of sales is thus expected to trend higher, reflecting increased sales of NdPr oxide and metal along with added costs associated with magnetic precursor products. Start-up costs are also likely to increase in the coming quarters.
Management expects near-term Magnetics results to be affected by the roll-off of precursor revenues, early magnet production scaling, customer testing milestones and continued investment in personnel and product development. Full-year 2026 capital expenditures are expected at $500-$600 million as 10X and other projects advance. These costs can keep profitability and free cash flow uneven until higher-value production reaches greater scale.
Execution also remains a key risk. MP is simultaneously commissioning its dysprosium and terbium circuit, progressing through customer qualification at Independence, preparing for commercial magnet shipments and constructing the 10X facility. Delays in commissioning, customer qualification, production yields or construction could push out anticipated revenue and cash-flow benefits.
Our Final Take on MP Stock
MP Materials has a compelling long-term growth story, supported by rising demand for domestically produced rare earth materials, an integrated business model and investments in U.S. magnet manufacturing. Successful execution of its expansion projects could strengthen its position in the domestic rare earth supply chain and improve its earnings profile over time.
MP continues to report operating losses, faces elevated costs and substantial capital requirements, while earnings estimates have moved lower. More importantly, the stock trades at a significant premium to both the industry and key rare earth peers despite underperforming the broader market and industry over the past six months. Investors may want to remain on the sidelines until the company demonstrates more consistent earnings improvement and better execution of its expansion plans.
MP currently carries a Zacks Rank #5 (Strong Sell).
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MP Trades at a Premium Valuation: Buy, Sell or Hold the Stock?

Key Points
Reshoring often means replacing imported components or processing, not moving an entire factory back to the U.S.
MP Materials shows how reshoring can rebuild a critical domestic supply chain.
U.S. manufacturers still face a major price disadvantage, so investors should focus on whether reshoring actually translates into orders and earnings.
Reshoring has become an important theme in U.S. manufacturing. However, it does not simply mean moving an entire overseas factory back home.
Reshoring can also involve replacing imported components or processing with domestic capacity. The distinction changes which industrial stocks are positioned to benefit.
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Reshoring can happen inside the supply chain
According to the 2026 Reshoring Initiative survey, among surveyed contract manufacturers, 69% of reshoring cases involved customers switching component sourcing to the U.S. while assembly was already domestic.
MP Materials (NYSE: MP) is a good example. The company is expanding rare-earth processing and magnet production in the U.S. The company's new 10X facility in Texas is expected to produce 7,000 metric tons of magnets annually once fully scaled. MP Materials expects to invest more than $1.25 billion in the project. The expansion is part of MP Materials' effort to build an end-to-end U.S. rare-earth magnet supply chain and reduce dependence on foreign production.
Government support also reduces some of the risk around this expansion. The Pentagon has agreed to cover the shortfall if benchmark prices for MP's key rare-earth materials fall below $110 per kilogram. The Pentagon has also guaranteed that 10X will generate at least $140 million of annual EBITDA once the facility reaches full production.
The economics must still work
Reshoring can reduce supply chain risks, but U.S. manufacturers still must compete on price. In the 2026 USA Reshoring survey, 94% of contract manufacturers said price was the main reason they lost orders to imports. Among those losing on price, half said the winning import bid was at least 30% lower.
Among original equipment manufacturers (OEMs) reporting impacts from reshoring, 70% cited faster speed to market, 65% better on-time delivery, and 60% logistics savings. However, investors should not assume reshoring interest means a factory-building boom. U.S. manufacturing construction spending fell from $250 billion annualized in September 2024 to about $170 billion in July 2026, down roughly 32%.
Hence, investors should assess whether reshoring is actually translating into more orders and stronger earnings.
Should you buy stock in MP Materials right now?
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Manali Pradhan, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends MP Materials. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

What Does "Reshoring" Actually Mean for Industrial Investors?

Key Points
Government support and trade tensions boost the rare-earth sector's appeal, as the U.S. needs a domestic supply of rare-earth magnets.
MP is progressing on production and facility expansion plans.
Shares in rare-earth materials and magnets company MP Materials (NYSE: MP) rose by 32.3% in August, according to data from S&P Global Market Intelligence. The move comes in response to a positive second-quarter earnings report released early in the month and improving sentiment regarding the geostrategic importance of companies that can provide a domestic source of critical rare-earth materials.
Rare-earth companies found favor in August
A quick look at the stock's performance compared to its peer, USA Rare Earth (NASDAQ: USAR), reveals that they both outperformed last month. One reason comes down to a series of tit-for-tat trade actions that took place during the month. While tariffs on polysilicon and pecans are unlikely to move markets, they represent a soft escalation ahead of a summit between Presidents Xi and Trump in late September.
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Such developments underline the strategic importance of the support the U.S government is giving MP Materials as it executes its mine-to-magnet business plan that will provide non-China sourced and domestically produced rare-earth magnets,
MP Materials is quietly executing its business plan
As previously discussed, buying stock in MP Materials implies a belief in the company's ability to execute its plan to ramp magnet production, build out a major new production facility, "10X," and overcome any potential regulatory and environmental hurdles at Mountain Pass (a rare-earth mine operated by MP Materials).
While the second quarter earnings didn't provide any definitive answers to those questions, they did demonstrate solid progress:
Neodymium-praseodymium (NdPr) products production volume increased by 41% year-over-year to 840 tonnes, with sales volume increasing 127% to 1,006 metric tonnes.
$17.6 million in price protection agreement income illustrates the value in the 10-year price floor commitment put in place with MP Materials' public-private partnership with the Department of Defense last year.
Management confirmed that construction activity on 10X had already begun.
MP Materials' existing facility, Independence in Fort Worth, Texas, is "fully sold out between GM and Apple," according to CEO Jim Litinsky on the earnings call.
A significant reduction in adjusted net loss to $2.1 million from an adjusted loss of $21.4 million in the same quarter of 2025.
All told, MP Materials' second quarter indicates a company executing on its objectives while benefiting from ongoing government support that derisks its business plan.
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Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends MP Materials. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

MP Materials' Stock is Surging: Here's Why

MP Materials MP and NioCorp Developments Ltd. NB are two US-based companies expected to play key roles in establishing domestic critical-mineral supply chains and reducing dependence on foreign sources.
Las Vegas-based MP Materials is an established rare earth producer with integrated mining, processing and magnet manufacturing operations. It currently has a market capitalization of approximately $10 billion. Colorado-based NioCorp, in contrast, is a development-stage company advancing its Elk Creek Critical Minerals Project in Nebraska, with a market capitalization of roughly $600 million.
The key question is which stock to bet on, MP or NB. To make an informed decision, let us analyze their fundamentals, growth potential and key challenges.
The Case for MP Materials
MP Materials owns and operates the Mountain Pass mine in California, the only large-scale rare earth mining and processing facility in North America. It also owns the Independence facility in Fort Worth, TX, where it manufactures magnetic precursor products and began producing neodymium-iron-boron (NdFeB) permanent magnets in December 2025.
MP continues to scale production and downstream manufacturing capabilities. Neodymium-praseodymium (NdPr) production increased 41% year over year to 840 metric tons in the second quarter of 2026 despite a scheduled semiannual maintenance outage at Mountain Pass. Management expects third-quarter 2026 NdPr production to exceed 1,000 metric tons as throughput and plant reliability improve.
MP Materials remains on track to begin producing terbium and dysprosium later this year, while first samarium production is targeted for 2028. The company recently entered into a multiyear agreement to supply gadolinium oxide to a leading U.S. aerospace and defense manufacturer.
Meanwhile, MP is progressing with its magnet manufacturing operations. During the second quarter, MP Materials delivered magnets to General Motors Company GM for in-vehicle qualification testing and expects to begin commercial shipments in the fourth quarter, followed by a steady production ramp.
MP reported an 89% year-over-year increase in second-quarter 2026 revenues to $108.5 million. The company also recorded $17.58 million in income tied to a price protection agreement (PPA) with the Department of War (DoW). Cost of sales, however, increased 43.3% year over year, and selling, general and administrative expenses rose 28.2%. Start-up costs surged to $14.4 million from $0.76 million in the year-ago quarter as MP advanced initial magnet production.
The company reported an operating loss of $32 million, narrower than the loss of $43.9 million in the year-ago quarter. MP reported an adjusted loss of one cent per share in the second quarter of 2026, a significant improvement from the loss of 13 cents in the year-ago quarter.
Looking ahead, the company expects additional cost pressures as production scales. Start-up costs are also likely to increase further in the coming quarters.
MP Materials has also worked with U.S. and allied drone manufacturers to launch Project Swarm, an industrial coordination initiative designed to aggregate and standardize future magnet demand. It has already signed subscription agreements with several participants. The company’s partnership with Apple on magnet recycling, magnet production and joint development also continues to advance.
Meanwhile, construction of the 10X facility remains on track. The second U.S. rare earth magnet facility is expected to begin commissioning in 2028 and produce approximately 7,000 metric tons of magnets annually. Combined with the 3,000-metric-ton capacity of the Independence facility, MP’s U.S. magnet capacity is expected to reach 10,000 metric tons annually.
The Case for NioCorp
NioCorp’s primary focus is advancing the Elk Creek Critical Minerals Project toward commercial production. The company recently released an updated 2026 Feasibility Study for the Elk Creek project. The project is expected to produce eight products compared with three earlier. This includes ferroniobium, scandium trioxide, titanium tetrachloride and several rare earth oxide products, including NdPr, dysprosium oxide and terbium oxide, samarium-europium-gadolinium carbonate and heavy rare earth carbonate. The expanded product mix is expected to provide a more diversified revenue base and reduce dependence on any single commodity.
Over the projected 40-year mine life, the Elk Creek Project is projected to generate approximately $37.4 billion in life-of-mine revenues, average annual EBITDA of $608 million and average annual operating cash flow of $519 million. The study estimates an upfront capital requirement of approximately $1.85 billion.
NioCorp, being still in the development stage, has yet to generate revenues from mining operations. The company continues to incur operating expenses primarily related to costs incurred for the advancement of the Elk Creek Project and the activities necessary to support corporate and shareholder duties, resulting in losses.
In February 2026, NB commenced construction of the main underground portal for its Elk Creek Project, marking a shift from planning to pre-construction. NioCorp has raised more than $500 million since January 2025, has received a $10 million Pentagon Title III award and is under consideration by the U.S. Export-Import (EXIM) Bank for debt financing of up to 65% of the project’s capex costs. Notably, the completion of the 2026 Feasibility Study will satisfy a key EXIM Bank due diligence requirement.
On the commercial front, NioCorp has signed non-binding agreements aimed at establishing future markets for its planned output. These include a memorandum of understanding with Lockheed Martin Corporation LMT and a non-binding term sheet with Traxys to market and sell minerals from the Elk Creek Project.
These developments improve the project's strategic positioning, particularly as the United States seeks to reduce dependence on imported critical minerals. However, investors should note that Elk Creek remains a development-stage project, and its projected economics and production timelines are subject to financing, construction execution, commodity prices and other risks.
How do Estimates Compare for MP & NB?
The Zacks Consensus Estimate for MP Materials’ fiscal 2026 earnings is pegged at eight cents per share, indicating a turnaround performance from the loss of 24 cents in 2025. The estimate for MP Materials’ 2027 earnings is pegged at 88 cents per share, implying 1,009% year-over-year growth.
The Zacks Consensus Estimate for NioCorp’s fiscal 2026 earnings is pegged at a loss of 46 cents per share, wider than the loss of 35 cents in fiscal 2025. The fiscal 2027 estimate is at a loss of 32 cents per share.
Both estimates for MP Materials’ 2026 and 2027 have been revised downward over the past 60 days. Estimates for NioCorp’s fiscal 2026 have moved up in the past 60 days, while the estimates for fiscal 2027 have moved down. This is shown in the chart below.
MP vs. NB: Price Performance & Valuation
Over the past year, MP Materials stock has declined 21.1% compared with NioCorp’s 10.2% fall.
MP Materials is currently trading at a price-to-book ratio of 5.11, while NioCorp is trading at a lower 1.38.
MP Materials or NioCorp: Which Stock is the Better Buy?
Both MP Materials and NioCorp stand to benefit from growing U.S. efforts to establish secure domestic supply chains for rare earths and other critical minerals.
MP Materials currently has a clear advantage in terms of operational maturity. Its integrated Mountain Pass operations, growing rare earth production, expanding magnet manufacturing capacity and strategic partnerships with customers and the U.S. government provide tangible growth opportunities. However, substantial investments in downstream expansion and production ramp-ups could continue to pressure near-term profitability.
NioCorp offers exposure to a broader portfolio of critical minerals and has made progress in advancing the Elk Creek Project. The updated feasibility study points to potentially attractive long-term economics, while government support and commercial discussions could strengthen the project's strategic importance. Nevertheless, the company faces significant execution and financing risks as it works to transition from development into construction and commercial production.
Given the downward revisions to earnings estimates and the risks associated with their respective expansion plans, investors may prefer to wait for improved earnings visibility and clearer execution milestones before taking positions. Both MP and NB currently carry a Zacks Rank #4 (Sell).
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MP vs. NB: Which Critical Minerals Stock is the Better Buy?

Key Points
China instituted new export restrictions in June that affected companies like USA Rare Earth and MP Materials.
Securing access to rare-earth minerals is a strategic priority for the U.S. and its allies.
Diversifying supply chains away from Chinese goods and services could ultimately benefit U.S. rare-earth stocks.
Geopolitical tensions between the U.S. and China are central to the bull cases for stocks like USA Rare Earth (NASDAQ: USAR) and MP Materials (NYSE: MP). China dominates theglobal marketfor the extraction and processing of rare-earth minerals, and the company has used its position in the sector as a key lever as it navigates increasingly adversarial relations with the U.S., Japan, and the European Union.
The U.S. and key allies have been making moves to reduce their dependence on Chinese rare-earth mineral supplies, but these initiatives are generally still in relatively early stages compared to what is needed. In June, China announced it was implementing export restrictions on the sale of goods and technologies to USA Rare Earth and MP Materials that could be used to support sourcing by foreign militaries.
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Could this actually be a bullish catalyst for U.S.-based rare-earth companies?
Securing access to rare-earth materials is crucial for the U.S. and its allies
While Chinese export restrictions could create moderate near-term headwinds for USA Rare Earth and MP Materials, both companies had already taken significant steps to diversify their supply chains away from relying on Chinese goods and services. In that regard, the export restrictions can be viewed as accelerating a shift that was already underway -- and as a development that could actually wind up being a positive long-term catalyst.
If relations between China and the U.S. and its allies continue to deteriorate and China further restrict access to rare-earth materials, it will become crucial to secure them from other sources. Removing supply chain reliance on Chinese goods and technologies reduces the potential for disruption as U.S.-based rare-earth mining companies move to scale their operations.
Should you buy stock in USA Rare Earth right now?
Before you buy stock in USA Rare Earth, 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 USA Rare Earth wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends MP Materials. The Motley Fool has a disclosure policy.
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Could a Chinese Blacklist Be Bullish for Rare-Earth Stocks?

Key Points
Both companies had double-digit revenue growth in the second quarter.
Rare-earth miner and processor MP Materials is getting help from the U.S. Department of Defense.
Enterprise Products Partners has an above-average dividend.
MP Materials (NYSE: MP) and Enterprise Products Partners (NYSE: EPD) operate as indispensable, hard-to-replicate infrastructure assets at the very top of vital industrial supply chains, but the similarity ends there.
Neither stock is actually boring, though mining and energy stocks are often stuck with that label. MP Materials is the leading rare-earth mining company in the U.S. It also processes rare earths, mainly for permanent magnets. It was founded in 2017 and went public via a merger with a special-purpose acquisition company (SPAC) in 2020.
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Midstream energy pipeline operator Enterprise Products Partners was founded in 1968 and went public in 1998. Its revenue comes from the toll-like fees that it charges users of its pipelines.
When you compare each company's growth, the choice comes down to MP Materials' high-beta top-line acceleration versus Enterprise Products Partners' steady, utility-like income expansion.
MP Materials is seeing huge top-line growth
Shares of MP Materials, though well off their 52-week high of $100.25, are up more than 15% so far this year. The company isn't profitable yet, but thanks to huge revenue growth, it could get there soon.
The U.S. Department of Defense (DoD) provided the company with early research and development funding and serves as a primary capital partner and commercial backstop for MP Materials, de-risking its expansion from a mining company into an integrated domestic rare-earth processor. That includes a $150 million loan and a $400 million equity investment from the DoD to MP Materials in 2025.
In the second quarter, the company reported revenue of $108.5 million, up 89% year over year. It also reported an earnings per share (EPS) loss of $0.11, a 42% improvement over the same period last year. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were $28.5 million, compared to an adjusted EBITDA loss of $12.5 million in Q2 2025.
The key to the turnaround is the U.S. government's public partnership with MP Materials on rare metals and the company's pivot from selling unrefined rare-earth concentrate to China and moving to fully refined Neodymium-Praseodymium (NdPr) oxides, metals, and magnet manufacturing.
Enterprise Products Partners is boring -- in a good way
Enterprise Products Partners' shares are up a little more than 21% so far this year. The company's revenue comes from charging fees for transporting, processing, and storing energy products, including natural gas, natural gas liquids, and crude oil, through its 50,000 miles of pipelines, liquid storage facilities, and marine export terminals.
In Q2, Enterprise reported revenue of $18.3 billion, up 60.7% year over year. EPS was $0.84, up 27.3% over Q2 2025.
The company is a favorite of income-oriented investors because of its high-yielding dividend. Its yield, at its current share price, is around 5.66%, slightly more than five times that of the S&P 500 average. Because of that high yield, investors look at the company's distributable cash flow (DCF) to judge the safety of its dividend. In the quarter, it reported a record DCF of $2.3 billion, up 21% year over year, and providing 1.9x coverage of the dividend.
The company has raised its quarterly dividend for 28 consecutive years, including a 2.8% raise this year to $0.56 per share.
The choice depends on your situation
Both stocks offer strong cases for investment. MP Materials is seeing strong revenue growth and, thanks to a significant lift from the DoD, it's getting closer to profitability. Like any mining stock, particularly in rare-earth mining, it poses risks due to the high costs of mining and processing.
For my money, Enterprise Products Partners is a better investment. Its revenue streams are more stable and diverse, and its rate of revenue growth, though lower than MP Materials', is hardly lacking.
On top of that, its dividend is well covered and has steady growth, providing an extra layer of security for investors.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 973%* — a market-crushing outperformance compared to 213% for the S&P 500.
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James Halley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends MP Materials. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy.

MP Materials vs. Enterprise Products: Which "Boring" Business Actually Has the Better Growth Case?

Key Points
MP Materials signed a major long-term aerospace and defense deal.
Apple and the Pentagon have already validated MP's strategy.
More aerospace and defense agreements could follow this latest deal.
Last month, MP Materials (NYSE: MP) signed an agreement to supply gadolinium oxide (a key rare-earth material found in nuclear reactor shielding on submarines and infrared sensors and electronics) to an unnamed U.S. aerospace and defense manufacturer. Management expects the contract to be worth nine figures over multiple years, with MP developing the additional separation capacity at its Mountain Pass facility in California.
Now, the company hasn't disclosed the customer or the specific size of the contract, but management described the deal as significant. And while I'm not typically keen on ambiguity, the announcement of this deal does provide some interesting intel about demand.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
You see, American aerospace and defense companies rely heavily on rare-earth materials for everything from aircraft and missiles to radar systems, satellites, and drones. The problem is that China controls much of the world's rare-earth processing and manufacturing capacity. That's a vulnerability the U.S. government has been trying to eliminate.
MP Materials already operates a mine and processing facility in Mountain Pass, California, and it's expanding further in Texas, where it currently produces rare-earth metals and magnets in Fort Worth. The company is actually building a much larger magnet manufacturing campus in nearby Northlake.
MP is producing more rare-earth material
In Q2, MP Materials produced 840 metric tons of NdPr oxide, up 41% year over year. NdPr is neodymium-praseodymium, the material used to make the essential permanent magnets found in electric vehicles, drones, robotics, and wind turbines.
MP sold 1,006 metric tons of NdPr in the second quarter, a 127% increase from the same quarter last year. That helped push quarterly revenue up 89% to $108.5 million, while adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) improved by $41 million to $28.5 million.
Those numbers are important because MP's investment thesis increasingly depends on its ability to move beyond simply mining rare-earth ore and sell higher-value products further down the supply chain. And that's exactly what's starting to happen. MP's magnetics segment generated $16.5 million in Q2 revenue, and adjusted EBITDA from that business reached $7.5 million.
Customers are validating the strategy
The unnamed aerospace company isn't the first major customer to back MP's domestic supply chain strategy. Last year, the Department of Defense agreed to invest $400 million in MP Materials. Then Apple followed with a $500 million commitment to purchase American-made rare-earth magnets from MP. So now you've got the Pentagon, Apple, and an aerospace and defense company all moving in essentially the same direction.
This isn't the last one
MP has spent years building the infrastructure necessary to create a rare-earth supply chain outside China. Now the customers are beginning to line up before that build-out is even finished.
Apple wants magnets for consumer electronics. The Defense Department wants a secure domestic supply chain. And now an aerospace and defense customer has signed a long-term agreement for another critical rare-earth material.
That's why I don't believe this latest aerospace agreement will be the last. The bottom line is that the more companies decide that dependence on China represents an unacceptable supply chain risk, the more valuable MP Materials' domestic production becomes.
Should you buy stock 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 $429,223!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,317,883!*
Now, it’s worth noting Stock Advisor’s total average return is 965% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of August 24, 2026.
Jeff Siegel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and MP Materials. The Motley Fool has a disclosure policy.

Prediction: MP Materials' Aerospace Deal Is Just the First of Several

Key Points
First Majestic Silver achieved a significant swing to profitability in FY 2025, supported by a sharp increase in silver and gold revenue.
MP Materials continues to build out a domestic rare earth supply chain with strategic backing from the U.S. Department of Defense.
Which of these critical materials stocks offers the best path for your portfolio in 2026?
Choosing between precious metals and critical rare earths requires balancing traditional mining stability against high-tech growth potential. Is First Majestic Silver Corp (NYSE:AG) or MP Materials Corp (NYSE:MP) the better addition for your portfolio today?
First Majestic focuses on maximizing silver and gold production through underground mining operations in North America. MP Materials provides the materials necessary for electric vehicles and defense systems. Both companies operate within the metal stocks industry, yet they offer very different financial profiles for investors looking toward 2026.
The case for First Majestic Silver
First Majestic Silver focuses on mining silver and gold within Mexico and the United States. It operates four primary underground mines, including San Dimas, Santa Elena, La Encantada, and Los Gatos. The company manages a workforce of more than 5,100 employees to supply physical metals to global markets. Customer concentration is not disclosed as a significant factor in its latest annual report, filed for the most recent fiscal period.
In FY 2025, revenue reached nearly $1.3 billion (the company reports in Canadian dollars; they have been converted to U.S. dollars here), representing a significant growth of approximately 128% compared to the prior year. This sharp increase helped the company achieve net income of close to $168 million, a major improvement from the net loss reported in FY 2024. The net margin, which measures the percentage of revenue kept as profit, stood at roughly 13% for the period.
As of its December 2025 balance sheet, the debt-to-equity ratio is approximately 0.1x. This ratio shows that for every dollar of shareholder equity, the company has roughly ten cents in total debt. The so-called current ratio, which measures the ability to pay short-term bills, is close to 2.6x. Free cash flow, which is cash from operations minus capital spending, reached approximately $352 million during the year.
The case for MP Materials
MP Materials operates as the only fully integrated rare earth producer in the United States. It mines materials at its Mountain Pass facility and manufactures magnets at its Independence facility in Texas. Major customers include General Motors Corp (NYSE:GM), Apple Inc (NASDAQ:AAPL), and the U.S. Department of Defense. Customer concentration like this adds a layer of risk to the business, particularly given the reliance on government offtake agreements.
In FY 2025, revenue reached approximately $224 million, showing a year-over-year growth of more than 10%. Despite this growth, the company reported a net loss of close to $86 million. This resulted in a negative net margin of roughly 38.3% for the fiscal year as the company continues to invest in scaling its production capabilities.
As of its December 2025 balance sheet, the current ratio is approximately 7.2x, indicating a strong ability to cover short-term obligations. The debt-to-equity ratio is close to 0.4x, showing that total debt is about 40% of the value of shareholder equity. Free cash flow was negative at nearly $328.1 million, reflecting the high costs of building out its downstream magnet manufacturing infrastructure.
Risk profile comparison
First Majestic Silver faces risks inherent to the mining industry, including fluctuating commodity prices for silver and gold. Operational risks at its underground mines in Mexico and the United States could impact production targets or safety standards. Additionally, the company must manage regulatory changes in its mining jurisdictions which could increase costs or limit expansion opportunities for new deposits.
MP Materials is highly reliant on its partnership with the U.S. Department of Defense for funding and strategic support. Scaling its magnet manufacturing facilities involves significant capital risks and potential construction delays at the Independence and 10X facilities. Furthermore, the company faces intense competition from low-cost Chinese producers and must protect its proprietary technology from competitors such as USA Rare Earth Inc (NASDAQ:USAR).
Valuation comparison
First Majestic Silver appears to be the more value-oriented choice, trading at a lower P/S ratio. First Majestic Silver has a more reasonable Forward P/E than its peer.
Metric
First Majestic Silver
MP Materials
Forward P/E
22.7x
667x
P/S ratio
6.4x
34.9x
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
Each of these companies provides exposure to metals, but at very different ends of the market.
First Majestic Silver is involved in precious metals. Both gold and silver have been having one of their best runs in decades. Gold has more than doubled over the past two years as investors have flocked to the yellow metal for its historic inflation-hedging characteristics. Silver has nearly tripled since the start of 2025, partly in tandem with gold and partly due to industrial demand from renewable energy applications. Even with profit-taking clipping the gains in recent weeks, both metals have held on to the majority of their gains since the rally took off at the start of 2024.
The benefit of a mining stock as opposed to buying the physical metal directly or through a fund is that, as prices rise, so do profits, because early in the bull market, production prices don't rise as fast as the market price. Management can also return profits to shareholders as dividends and pursue other value-creation methods, such as selling to a larger competitor, which is not unusual in the metals business.
MP Materials is in the rare earth metals business, where pricing is largely opaque, and investors can't buy the metals directly. Given the U.S. government's desire to reduce the country's reliance on Chinese-sourced rare earths, MP is gaining significant market support.
These are both companies where Wall Street analysts expect sales and profits to rise notably in the coming years. First Majestic Silver, however, is more at risk of going down because the forward-looking market may not believe silver can advance much further.
MP, meanwhile, can be seen as critical to national security and to renewable energy production because of the role of rare earths in each. Analysts expect it to turn a profit in 2027 and approach $1 billion in revenue in 2028. With no commodity futures arbitrage to worry about, it's less likely to be subject to the vagaries of the commodity cycle.
For the long-term, go with MP Materials.
Should you buy stock in First Majestic Silver right now?
Before you buy stock in First Majestic Silver, 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 First Majestic Silver 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 $429,223!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,317,883!*
Now, it’s worth noting Stock Advisor’s total average return is 965% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of August 24, 2026.
Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and MP Materials. The Motley Fool recommends General Motors. The Motley Fool has a disclosure policy.

First Majestic Silver vs. MP Materials: Which Metals Stock Is a Better Buy in 2026?

Key Points
China controls about 70% of rare-earth extraction and 90% of rare-earth processing.
U.S. policymakers are taking steps to push to boost domestic capabilities.
MP Materials and The Metals Company are two rare-earth companies in the news thanks to government financing and streamlined permitting processes.
Rare-earth elements are central to advanced technologies, including those used in defense. For decades, China has tightened its grip on the mining and processing of these crucial materials, raising concerns among U.S. policymakers.
Research from The Motley Fool shows that China accounts for roughly 70% of rare-earth extraction and 90% of rare-earth processing. In response, there is a renewed focus on boosting domestic mining and processing of rare-earth elements.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Two rare-earth companies generating buzz are MP Materials (NYSE: MP) and The Metals Company (NASDAQ: TMC). Both companies could be key players in helping the U.S. secure rare-earth elements, but one in particular stands out as the smarter investment choice that could pay off sooner rather than later.
MP Materials has this key advantage over The Metals Company
When you compare MP Materials and The Metals Company (TMC), the differences are stark. MP Materials operates the Mountain Pass rare-earth mine and processing facility, the only active rare-earth mining and processing site of scale in North America. In contrast, TMC is a development company exploring the collection and processing of polymetallic nodules on the seafloor, a practice known as deep-sea mining.
MP Materials already has mining and processing capabilities and is expanding its downstream processing capabilities, where it manufactures powerful magnets used in many modern technologies.
Another distinct advantage for MP Materials is its massive agreement with the Department of Defense. As part of the deal, the DoD entered into a price protection agreement that guarantees a minimum price of $110 per kilogram for MP's neodymium-praseodymium (NdPr) product. In Q2 2026 alone, this agreement generated $17.6 million in price protection income for MP Materials.
In addition to its partnership with the DoD, MP also has long-term agreements with General Motors and Apple for its permanent magnets.
The Metals Company faces a couple of key risks
In comparison, TMC is looking to mine the deep ocean floor for resource-rich polymetallic nodules. These nodules are rich in nickel, copper, cobalt, and manganese, and the company is targeting the Clarion Clipperton Zone in the Pacific.
This region is rich in resources. According to a pre-feasibility study and initial assessment by TMC, the combined estimated resource Net Present Value (NPV) could be $23.6 billion, with undiscounted lifetime revenue of up to $369 billion.
That said, TMC faces several legal hurdles. For example, the company is benefiting from a presidential executive order by President Donald Trump designed to expedite deep-sea mining permitting. However, the International Seabed Authority (ISA) has not yet finalized exploitation regulations, and there is debate over whether the U.S. even has the authority to issue mining permits in these waters.
This rare-earth stock is a better buy right now
Rare-earth mining and processing have become a crucial component of national security, helping the U.S. shore up its supply chains.
The Metals Company is looking to carve out its place in the deep-sea mining space, but legal hurdles and other technical hurdles, like the feasibility of deep-sea mining at scale, remain and make it a risky stock for investors buying today.
On the other hand, as the U.S. builds up its mining and processing capabilities, MP Materials is already well positioned to help the country meet its needs immediately and will grow into an even larger player once its 10X facility comes online in 2028.
Should you buy stock 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 $429,223!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,318,055!*
Now, it’s worth noting Stock Advisor’s total average return is 965% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of August 23, 2026.
Courtney Carlsen has positions in Apple, MP Materials, and TMC The Metals Company. The Motley Fool has positions in and recommends Apple and MP Materials. The Motley Fool recommends General Motors. The Motley Fool has a disclosure policy.