USA Rare Earth vs. MP Materials: Which Stock Will Make You Richer?

Core Viewpoint - MP Materials and USA Rare Earth are both focused on establishing a supply chain for rare-earth metals and magnets in the U.S., with differing levels of risk and development stages impacting potential investor returns [1]. Company Overview MP Materials - MP Materials operates the Mountain Pass mine in California, the only active rare-earth metals mine in the U.S., and has a magnet factory in Fort Worth, Texas, with plans for a second facility to increase domestic magnet output to an estimated 10,000 metric tons [3]. - The company has a market capitalization of approximately $10 billion, with a current stock price of $58.03 and a 52-week range of $18.64 to $100.25 [4]. - MP Materials received a $400 million investment from the Department of Defense in July 2025, which includes an agreement to purchase 100% of future production from its second magnet factory [6]. USA Rare Earth - USA Rare Earth controls the Round Top deposit, one of the largest heavy rare-earth element deposits in the U.S., but is currently pre-revenue and aims for commercial production by 2028 [5]. - The company has a market capitalization of approximately $2.9 billion, with a current stock price of $19.43 and a 52-week range of $5.56 to $43.98 [6]. - In early 2026, USA Rare Earth received a $1.6 billion funding package from the Trump administration to develop its mine and build its first magnet factory in Oklahoma [5]. Market Context - Both companies address the critical issue of U.S. reliance on China for rare-earth metals and magnets, but they are at different stages of development, with MP Materials generating revenue while USA Rare Earth has potential for future upside if it successfully opens its first mine [7]. - The success of both companies is speculative and hinges on the continued demand for domestically produced permanent magnets [8].