The United States is entering a new era of strategic investment in rare earth elements, driven by mounting concerns over global supply chain security and national defense. As the Department of Defense (DoD) dramatically increases its commitment to securing domestic sources of critical minerals, a fresh spotlight is shining on American rare earth producers and related companies. For investors seeking exposure to this vital sector, understanding which U.S. stocks stand to benefit most is crucial.

Why Rare Earths Matter Now More Than Ever

Rare earth elements—an umbrella term for 17 metallic elements including neodymium, praseodymium, dysprosium, and terbium—are essential for manufacturing advanced electronics, military technologies, renewable energy components, and electric vehicles. While the U.S. led rare earth production decades ago, China now dominates the global supply chain, refining over 85% of the world’s output. Geopolitical tensions, export restrictions, and recent disruptions have spurred the DoD and policymakers to act decisively to secure domestic sources.

In 2025, the DoD announced a new wave of strategic investments and supply agreements aimed at bolstering America’s critical mineral independence. These moves are reshaping the rare earth industry landscape—and creating new opportunities for U.S.-listed companies.

MP Materials: The Flagbearer for U.S. Rare Earths

Leading the charge is MP Materials (NYSE: MP), operator of the legendary Mountain Pass mine in California—the only large-scale rare earth mine in North America. After years of underinvestment, MP Materials has dramatically scaled up its operations, thanks to a combination of private capital, government grants, and high-profile commercial deals, including a $500 million investment from Apple to secure rare earth magnets for domestic iPhone production.

The company is rapidly moving beyond mining, ramping up its refining and magnet manufacturing capacity. In 2024, MP Materials secured a major multi-year contract with the DoD to supply neodymium-praseodymium oxide for military and energy applications. With new investments in processing facilities in Texas and Nevada, the company aims to become a vertically integrated American rare earth powerhouse—mining, refining, and fabricating advanced materials entirely on U.S. soil.

Lynas Rare Earths: The U.S. Expansion

While Lynas Rare Earths (ASX:LYC) is based in Australia, its ambitious U.S. expansion is making waves. Backed by DoD grants, Lynas is building a large rare earth processing facility in Texas. This plant, expected to open in late 2025, will process materials sourced from its Australian mines and directly support U.S. defense supply chains.

Lynas’ Texas operation is significant because it diversifies America’s refining capacity beyond China and introduces competition into a traditionally monopolistic market. While U.S. investors can gain exposure through international brokers or OTC listings, Lynas’ expansion illustrates the global nature of the rare earth race and its impact on American supply chains.

Energy Fuels: Diversifying Critical Minerals

Traditionally a uranium producer, Energy Fuels (NYSE American:UUUU) has emerged as a dynamic player in rare earth processing. The company’s White Mesa Mill in Utah is already producing mixed rare earth carbonate, with plans to build out a full value chain—from raw ore to separated rare earth oxides—entirely within the U.S. Energy Fuels is uniquely positioned to leverage its existing infrastructure, regulatory expertise, and relationships with the U.S. government.

The company’s aggressive move into rare earths has been rewarded with federal contracts and strong investor interest. In 2025, Energy Fuels announced new supply agreements with magnet manufacturers, further integrating into the downstream supply chain. This diversification strategy reduces dependency on uranium markets and positions the company as a critical minerals supplier to the defense, energy, and automotive sectors.

Other Stocks to Watch

A handful of other companies are actively developing rare earth assets or related technologies in the U.S.:

• Texas Mineral Resources (OTCQB:TMRC): Focused on the Round Top project in Texas, this junior miner is exploring a vast polymetallic deposit with significant rare earth content. Strategic partnerships and DoD-backed research have raised its profile as a potential domestic source.
• USA Rare Earth (Private, with IPO plans): Partnering with TMRC at the Round Top site, USA Rare Earth aims to build a fully integrated mine-to-magnet supply chain in America, including a new magnet manufacturing facility in Oklahoma.
• Defense Metals (TSXV:DEFN): Though its flagship project is in Canada, Defense Metals’ push for North American rare earth production is aligned with U.S. strategic interests and could provide additional North American supply for the DoD.
• NioCorp Developments (NASDAQ: NB): Developing a rare earth and critical metals project in Nebraska, with a focus on scandium, niobium, and titanium alongside traditional rare earths.

The DoD’s Strategic Approach: More Than Just Mining

The Department of Defense’s latest initiatives go far beyond supporting new mining projects. The focus is on building out the entire domestic rare earth supply chain: extraction, separation, refining, alloying, and magnet manufacturing. The DoD is leveraging public-private partnerships, long-term supply agreements, and direct grants to companies that can demonstrate scalable, environmentally responsible production.

By 2026, the goal is for the U.S. to not only mine rare earths but also refine and manufacture finished magnets domestically—breaking the dependency on foreign supply at every stage.

Risks and Rewards for Investors

Investing in rare earth stocks comes with unique risks. Projects are highly capital-intensive, regulatory hurdles are significant, and global prices are volatile. However, as the DoD’s involvement increases and new contracts are awarded, the potential for sustained revenue growth and technological leadership grows as well.

Investors should focus on companies with existing production, strong balance sheets, and clear government or industry partnerships. Those positioned across the value chain—from mining to magnet production—will be best placed to benefit from America’s rare earth revival.

Conclusion

The Department of Defense’s renewed commitment to critical mineral security has created a generational investment opportunity in the U.S. rare earth sector. Companies like (NYSE: MP), Energy Fuels, and others are at the forefront, building the foundation for a secure, independent supply chain. As demand for advanced technology, renewable energy, and defense applications grows, rare earths are once again center stage—and the next chapter of American resource independence is being written now.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investing in stocks and commodities involves risk, including the possible loss of principal. Please conduct your own due diligence or consult a financial advisor before making investment decisions.