Key Points USA Rare Earth is attempting to build a business that spans the entire rare-earth metals supply chain. This is notable as rare-earth metals are growing important in high-tech devices and products. The young company is rapidly expanding its capacity to process rare-earth metals. 10 stocks we like better than USA Rare Earth › There is good news and bad news to consider when you look at USA Rare Earth (NASDAQ: USAR). The company's ambitious plan is to build from the ground up a comprehen ...

Company Overview - MP Materials operates one of the few rare earth metal mines and processing facilities in the U.S., specifically the Mountain Pass Mine in California, which is essential for producing neodymium-iron-boron magnets used in various applications including consumer electronics and electric vehicles [1][9] Market Position - No other U.S. company can match the scale of MP Materials, contributing to a significant stock price increase of 330% over the year, with potential for further growth supported by U.S. government initiatives [2][7] Industry Context - China dominates the rare earth metal supply chain, accounting for approximately 65% of global production in 2024, while the U.S. only accounts for about 11%, highlighting the strategic importance of MP Materials in the U.S. market [3][4] Government Support - The U.S. Department of Defense has entered into a multibillion-dollar deal with MP Materials, granting a 15% stake in exchange for benefits including a price floor of $110 per kilogram of neodymium-praseodymium, which will aid in expanding its production capabilities [5][6] Strategic Partnerships - MP Materials has secured a $500 million agreement with Apple to supply magnets made from recycled materials, with shipments expected to commence in 2027, further solidifying its market position [6][9] Valuation and Investment Outlook - The stock currently trades at approximately 81 times forward earnings, indicating high expectations from investors, suggesting potential volatility in the near term, with long-term investors likely to benefit the most [7]