We can’t produce smartphones, computers, flat panel televisions, wind turbines, electric vehicle batteries, computer chips, defense equipment, semiconductors, digital cameras, or catalytic converters.  Even the U.S. Department of Defense could run low on rare earths and other warfighting products.

Today, rare earth stocks are starting to explode higher again.

This time on news that analysts at Needham just initiated a buy rating on MP Materials (NYSE: MP) and USA Rare Earth (NASDAQ: USAR).

The firm noted, “We believe we are in the early innings of a multi-year investment cycle across the rare earth magnet value chain as governments around the world push to diversify critical supply chains outside of China. Through 2030, the industry is likely to be characterized by a race by Western suppliers to catch Western demand,” as quoted by CNBC.

While investors can always jump into those stocks, ETFs offer greater diversification at a lower cost.  In fact, here are three you may want to consider.

Diversified Exposure to Rare Earth Producers and Strategic Metals 

With an expense ratio of 0.58%, the VanEck Rare Earth and Strategic Metals ETF (NYSEARCA: REMX) attempts to replicate 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. 

Since bottoming out at around $80 in March, the REMX ETF is now up to $99.63.  From here, we’d like to see it rally back to $110 near-term.

A Broad Play on Critical Materials Powering New Technologies

There’s also the Global X Rare Earth & Critical Materials ETF (NASDAQ: EART).

With an expense ratio of 0.59%, the EART ETF invests in companies producing rare earth components, metals and other raw or composite materials that are essential to the expansion of critical technologies, such as electric vehicles, energy storage, robotics, and radar systems. Targeted companies include those involved in the exploration, mining, production and/or enhancement of Rare Earth Elements, Zinc, Platinum & Palladium, Nickel, Manganese, Lithium, Graphene & Graphite, Copper, Cobalt, and Carbon Fiber.

Some of its top 50 holdings include Rio Tinto (NYSE: RIO), Freeport-McMoRan (NYSE: FCX), Southern Copper (NYSE: SCCO), Albemarle (NYSE: ALB), and Impala Platinum (OTCMKTS: IMPUY). Since bottoming out at around $26.66 in March, the ETF is now up to $32.41. We’d like to see it retest $37 near term.

Investing in the Materials Behind the Energy Transition

With an expense ratio of 0.65%, investors may also want to consider the Sprott Energy Transition Materials ETF (NASDAQ: SETM), which provides exposure to companies involved in producing the critical materials needed for the global energy transition. 

The fund invests in miners and producers of commodities such as lithium, copper, nickel, cobalt, graphite, and rare earth elements that are essential for electric vehicles, battery storage systems, renewable energy infrastructure, and advanced electronics.

Investing in the Future of Energy and Technology

As governments secure supply chains outside of China, companies involved in rare earth mining, processing, and critical materials production could see years of increased demand. While individual stocks such as MP Materials and USA Rare Earth may offer significant upside, diversified ETFs provide investors with broader exposure to a sector that is rapidly gaining importance.

For those looking to capitalize on the global push for supply chain independence and advanced technologies, rare earth ETFs may be one of the simplest ways to participate in what could be a long-term growth trend.

Rare earths are used in many parts of modern military systems, such as the Tomahawk missile, which relies on samarium-cobalt magnets in its actuators and guidance tail fins to withstand high heat. 

For years, the U.S. has been overly dependent on China, which controls about 80% of the world’s rare earth supply.  However, as we’ve learned the hard way, that has to change. After all, without rare earths, the world can’t produce the millions of electric vehicles government leaders want on the roads. 

We can’t produce smartphones, computers, flat panel televisions, wind turbines, electric vehicle batteries, computer chips, defense equipment, semiconductors, digital cameras, or catalytic converters.  Even the U.S. Department of Defense could run low on rare earths for rare earths and other warfighting products.

The good news is that the world is on its way to breaking its dependence on China. For investors, that also means there can be opportunities in some key stocks in this sector.

USA Rare Earth

Shares of USA Rare Earth (NASDAQ: USAR) have been explosive.

Fueling upside, the company just got a buy rating from analysts at Benchmark, with a price target of $15. Benchmark noted that USAR’s plans to construct a 1,600-metric-ton-per-annum oxide processing facility in Lacq, scheduled for commissioning in late 2026, will help strengthen Europe’s rare-earth supply chain.

“The French government will provide substantial subsidies for the project, covering 45% of eligible equipment costs and €130 million for real estate expenses,” added Investing.com.

Helping, USAR also has more than $3 billion in potential funding, including a potential $1.6 billion from the U.S. Commerce Department to build a domestic rare earth and critical mineral supply chain, CEO Barbara Humpton said in an interview with Bloomberg.

“The defense sector knows that they need to choose different sources of supplies from China,” the CEO told Bloomberg. “The conversations we are having today say that they are willing to make commitments years from now in order to ensure that supply.”

MP Materials

 We also have to consider that MP Materials (NYSE: MP) has become a powerhouse stock after announcing a deal with the U.S. Department of Defense in July 2025, which would help accelerate the build-out of an end-to-end U.S. rare earth magnet supply chain and reduce foreign dependency.

As noted in a company press release, “Rare earth magnets are one of the most strategically important components in advanced technology systems spanning defense and commercial applications. Yet today, the U.S. relies almost entirely on foreign sources. This strategic partnership builds on MP Materials’ operational foundation to catalyze domestic production, strengthen industrial resilience, and secure critical supply chains for high-growth industries and future dual-use applications.”

VanEck Rare Earth and Strategic Metals ETF

With an expense ratio of 0.58%, the VanEck Rare Earth and Strategic Metals ETF (NYSEARCA: REMX) attempts to replicate 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. Some of its 30 holdings include MP Materials, Lynas Rare Earths (OTCMKTS: LYSCF), Albemarle (NYSE: ALB), Pilbara Minerals (OTCMKTS: PILBF), and Ganfeng Lithium (OTCMKTS: GNENF).

Why Rare Earth Stocks Are Gaining Strategic Importance

The growing strain on U.S. rare earth supplies is more than a short-term geopolitical issue—it’s a long-term national security and industrial priority. As defense demand accelerates and clean energy transitions continue, the need for a reliable, domestic supply chain is becoming critical.

That shift is already creating momentum for companies positioned to fill the gap. USA Rare Earth offers early-stage upside tied to funding and infrastructure buildout, while MP Materials provides a more established, government-backed pathway to domestic production. Meanwhile, the VanEck Rare Earth ETF gives investors diversified exposure to the global supply chain.

For investors, the takeaway is clear: rare earth elements are no longer a niche commodity—they are a strategic asset. As the U.S. works to reduce its dependence on China, these stocks could remain in focus for years to come.

NVIDIA’s status as an AI leader has made it a key bellwether for all AI stocks. Big tech companies that operate data centers say they will increase their massive capital expenditures (capex) this year, with a good chunk of that going toward artificial intelligence (AI). We also have to consider that NVIDIA’s chief executive officer (CEO), Jensen Huang, has said demand for the company’s new Blackwell platform data center products was “off the charts.”

Also, as noted by analysts at Wedbush, “Looking ahead to the remainder of 2026 and into 2027, the focus is already shifting toward NVIDIA’s next milestone: the Rubin (R100) architecture. 

Solid earnings, guidance, and anything positive about Rubin could ignite a big rally in NVIDIA and the overall tech sector. However, NVIDIA isn’t the only market heavyweight posting earnings in the next few days. Here are two other reports to watch closely.

IonQ: Weakness is a Buying Opportunity

IonQ Inc. (NYSE: IONQ) is down 25% in 2026. But this could be a buying opportunity. For one, a good deal of fear has been priced into the stock, which could mean the stock is getting oversold.

Two, earnings are expected to remain strong. For Q4 2025, analysts are looking for another quarter of solid revenue. Current estimates point to revenue of around $40 million for the quarter, reflecting further solid growth. Earnings per share (EPS) are expected to be negative with a loss of about 51 cents per share, which is an improvement. For full-year 2025, IonQ already guided for revenue in a range of $106 million to $110 million, with analysts expecting results near the high end of that range. 

In its Q3 2025 earnings report, the company crushed estimates on the top and bottom lines. It’s 17 17-cent-per-share loss, beating by three cents. Revenue of $39.87 million, up 221.5% year over year, beat by $12.88 million. Granted, it also posted a net loss of about $1.05 billion, but most of that was from large, non-cash charges and rising costs.

Three, IonQ could dominate a potential $198 billion market.

Moving forward, we do expect to see far better results from the company – especially as it attempts to dominate a potential $198 billion market by 2040. Fueling momentum, IonQ recently became the only quantum computing company to demonstrate two-qubit gate fidelities of 99.99%. That means the company’s platform makes just one error out of every 10,000 tries, which gives it a massive lead over its competition.

As IonQ improves its technology to become even more accurate, it could dominate the quantum computing sector, which, according to McKinsey & Co. could be worth between $28 billion and $72 billion by 2035. By 2040, it could be worth $198 billion. 

MP Materials: A Leader in the Race for Rare Earth Minerals

Rare earth company, MP Materials Corp. (NYSE: MP), will post earnings on February 26. Unlike IONQ, MP stock is up over 15% as of this writing. And recent history suggests it could move higher.

The last time MP Materials posted earnings in November, its stock gapped from about $51.84 to a high of $65.95. This was after the company posted an EPS loss of 10 cents, which beat estimates by six cents. Revenue of $53.55 million, down about 15% year over year, beat by $550,000. When it posts earnings on February 26, we do expect to see even better numbers, especially with enhanced cash flow visibility thanks to its rare earth production at Mountain Pass.

Moving forward, MP Materials does plan to commission its “heavy rare earth separation facility at Mountain Pass in mid-2026. The facility is designed to process approximately 3,000 MT of feedstock per year and will initially prioritize production of dysprosium and terbium. The Dy/Tb circuit will have a nameplate capacity of 200 MT per year and support MP’s planned production of 10,000 MT of high-performance NdFeB magnets per year,” as noted in its last earnings.

Longer term, if MP Materials can help break our reliance on China for rare earths, the stock could rally significantly higher.  Right now, the U.S. has been overly dependent on China, which controls about 80% of the world’s rare earth supply.  However, as we’ve learned the hard way, that has to change. After all, without rare earths, the world can’t produce the millions of electric vehicles government leaders want on the roads. 

We can’t produce smartphones, computers, flat panel televisions, wind turbines, electric vehicle batteries, computer chips, defense equipment, semiconductors, digital cameras, or catalytic converters.  Even the U.S. Department of War could run low on rare earths for rare earths and other warfighting products.

NVIDIA is Important, But It Has Coattails

In short…if NVIDIA delivers strong numbers and upbeat guidance — particularly around Blackwell and future Rubin architecture demand — it could reignite momentum not just in AI, but across the broader tech sector. At the same time, IonQ and MP Materials represent high-conviction opportunities tied to massive, long-term shifts. Be sure to keep an eye on them all.

Rare earths are not optional inputs. Without them, the global push toward electrification and advanced technology stalls out. Electric vehicles, millions of which governments want on the road, require rare earth magnets for motors and drivetrains. Smartphones, computers, flat-panel televisions, and digital cameras all rely on rare earth elements to function. Wind turbines use them for high-efficiency power generation, while semiconductors and computer chips need them to meet modern performance standards.

The implications go beyond consumer technology. Defense systems, guidance equipment, radar, and other advanced military hardware all depend on rare earth materials. Even the U.S. Department of Defense has warned that prolonged shortages could affect readiness and the production of critical warfighting systems. In other words, this isn’t just an economic issue; it’s a national security concern.

The good news is that the world is actively working to break its dependence on China. Governments are funding domestic mining, processing, and recycling efforts, while private companies race to build alternative supply chains. That shift is creating a powerful, long-term opportunity for investors willing to look closely at the rare earth stocks positioned to benefit from this global realignment.

Rare Earth Stocks #1: USA Rare Earth

USA Rare Earth (NASDAQ: USAR) is a development-stage critical minerals company focused on advancing a fully integrated rare earth element (REE) and lithium project in the United States. Its flagship asset is the Round Top deposit in West Texas, a large, polymetallic concentration of light and heavy rare earth elements, lithium and other co-products.

That illustrates the risk and the reward of USAR stock. The company is not profitable, nor is it generating revenue. Nevertheless, shares of are exploding higher, up over 70% in the 30 days ending Jan. 23.

Fueling that upside, the company just got a buy rating from analysts at Benchmark, with a price target of $15. Benchmark noted that USAR’s plans to construct a 1,600-metric-ton-per-annum oxide processing facility in Lacq, which is scheduled for commissioning in late 20, will help strengthen the supply chain for rare earth in Europe.

“The French government will provide substantial subsidies for the project, covering 45% of eligible equipment costs and €130 million for real estate expenses,” added Investing.com.

In addition, USAR just selected Fluor Corp and WSP Global as its Engineering, Procurement and Construction Management (EPCM) partners for its Round Top Rare Earth Project in Texas. “Fluor and WSP are key partners with the experience and expertise required to move Round Top toward commercial delivery,” said Alex Moyes, Vice President of Mining & Processing at USA Rare Earth, as noted in a press release. 

“Their teams know how to deliver complex mining and processing projects, and that matters as we work to bring a secure, domestic supply of heavy rare earth elements, inclusive of yttrium, into production, along with critical technology metals such as hafnium, zirconium, and gallium.”

Rare Earth Stocks #2: MP Materials

MP Materials Corporation (NYSE: MP) operates as a vertically integrated producer of rare earth materials in North America. The company owns and manages the Mountain Pass Rare Earth Mine and Processing Facility in California, the only commercially viable rare earth mining and processing site in the United States

That means that, unlike USA Rare Earths, MP Materials is generating revenue. However, it’s not yet profitable. But like USAR, MP stock is off to a strong start in 2026, up 23% in the 30 days ending Jan. 23.

Analysts are taking notice. In fact, on Jan. 13, analysts at William Blair launched a buy rating for MP Materials (MP). 

We also have to consider MP Materials has become a powerhouse stock after announcing a deal with the U.S. Department of Defense in July 2025, which would help accelerate the build-out of an end-to-end U.S. rare earth magnet supply chain and reduce foreign dependency.

As noted in a company press release, “Rare earth magnets are one of the most strategically important components in advanced technology systems spanning defense and commercial applications. Yet today, the U.S. relies almost entirely on foreign sources. This strategic partnership builds on MP Materials’ operational foundation to catalyze domestic production, strengthen industrial resilience, and secure critical supply chains for high-growth industries and future dual-use applications.”

Rare Earth Stocks #3: VanEck Rare Earth and Strategic Metals ETF

Of course, you may want exposure to rare earth stocks without choosing individual stocks. One of the most popular options for fund investors is the VanEck Rare Earth and Strategic Metals ETF (NYSEARCA: REMX).

With an expense ratio of 0.58%, the VanEck Rare Earth and Strategic Metals ETF (REMX) attempts to replicate 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. Some of its 30 holdings include MP Materials, Lynas Rare Earths, Albemarle, Pilbara Minerals, and Ganfeng Lithium.

A Long-Term Bet on Strategic Materials

Rare earth stocks aren’t a short-term trade driven by hype—they’re tied to structural changes in global supply chains. As the U.S. and its allies invest in domestic production to support EVs, clean energy, and defense systems, companies with rare earth exposure could see sustained demand growth. Whether investors prefer individual stocks like USAR and MP or diversified exposure through REMX, the theme offers a compelling way to invest in national security and next-generation technology.

For starters, what are rare earth elements? Specifically, this is a group of 17 metallic elements that are essential for modern technology. The specific applications include personal electronics, renewable energy, and the defense sector.

However, as the name gives away, these elements are in scarce supply, are challenging to mine for, and are becoming front-and-center in the United States’ ongoing trade war with China.

Low supply and high demand is a bullish setup for rare earth stocks. This setup will likely exist into 2026 and beyond.

That’s because the fight to secure more rare earth supply is still heating up. Granted, China did pause its rare earth restrictions for a year. However, there is still a strong possibility of more rare earth supply issues.

Which means there’s still an opportunity to buy low on rare earth stocks. Here are two names to consider.

Rare Earth Stocks #1: MP Materials

Analysts are still pounding the table over MP Materials Corp. (NYSE: MP). Despite being up over 271% in 2025 as of this writing, analysts give MP stock a consensus price target of $79, which is 36% above its closing price on December 10.

The last time we mentioned MP stock was November 20. At that time, it traded at around $58. The stock climbed to around $62 on December 8, but has pulled back some since. Still, the potential exists for the stock to race back near the consensus target, a level not seen since mid-October.

There are three short-term catalysts driving the price action. First, it operates the Mountain Pass mine in California. This is the only active, large-scale rare earth mining and processing site in North America. It’s now the backbone of the U.S. efforts to build a domestic supply chain.

Second, the U.S. Department of Defense announced it was buying $400 million worth of MP’s preferred stock. This makes it the company’s largest shareholder. Third, MP Materials signed a $500 million deal with Apple, which agreed to buy rare earth magnets from it.

Now, back to those analysts who are rallying MP stock even higher. Morgan Stanley just upgraded MP Materials to an overweight rating with a price target of $71 a share. The belief is that there is still a strong possibility of more rare earth supply issues, which MP Materials can assist with. 

Analysts at JPMorgan upgraded the miner to an overweight rating with a price target of $74 a share. “Our new rating reflects our view that rare earths national security concerns are ‘here to stay’ despite China’s reported one-year pause on export restrictions, with risks remaining, especially for military exposure,” they said, as quoted by CNBC.

“MP’s unique mine-to-magnet vertical integration positions the company as the ex-China leader ready to immediately begin addressing these concerns, although it will ultimately take multiple players over many years to sort out.”

Rare Earth Stocks #2: USA Rare Earth

USA Rare Earth (NASDAQ: USAR) has been just as explosive. In early October, USAR stock was up more than 150% in 2025. The stock has pulled back since then, but this looks like a buyable dip.

In early December, shares of USA Rare Earth (USAR) jumped from about $11.45 to $17.21. All after the company announced that its Less Common Metals subsidiary signed an agreement to supply Solvay and Arnold Magnetic Technologies Corporation with “high-quality rare-earth materials for Arnold’s production of advanced permanent magnets.”

The last time we highlighted an opportunity on USAR was on November 17, as it traded at $14.50. Now up to $17.28, we’d like to see USAR race back to $25 near term.

Final Takeaway: Rare Earth Momentum Isn’t Slowing

Rare earth stocks remain one of the most compelling themes heading into 2026. Supply risks, growing U.S. demand, and strategic partnerships continue to support MP Materials and USA Rare Earth. Both companies are well-positioned to benefit as the U.S. accelerates its efforts to establish a secure, domestic rare-earth supply chain. For investors, these recent pullbacks may represent rare opportunities.

But it may not be time to call all clear on rare earth stocks. Things could spiral out of control again.

That’s because China now wants to prevent the U.S. military from getting its rare earth supply. 

As noted by CNBC, “Beijing will not allow the export of rare earth materials for use by foreign militaries, China’s Ministry of Commerce announced on October 9. These are the first restrictions imposed by China that specifically target the defense sector, according to Gracelin Baskaran, a critical minerals expert at the Center for Strategic and International Studies.”

Considering rare earths are critical in U.S. weapons systems, this could get bad again. If that’s the case, investors may want to jump into rare earth stocks again, including:

Rare Earth Stocks to Buy: MP Materials

One of the biggest rare earth winners of the bunch has been MP Materials Corp. (NYSE: MP). Since late April, MP stock has raced from about $25 to a current price of $56. And even after a pullback of over 24% in the last three months, MP stock is up more than 263% in 2025.

JPMorgan believes MP is set to benefit from supply-demand issues. The firm upgraded the miner to an Overweight rating with a price target of $74 a share. That’s only slightly below the consensus price target of $79 per share, a 41% gain from its price as of this writing.

“Our new rating reflects our view that rare earths national security concerns are ‘here to stay’ despite China’s reported one-year pause on export restrictions, with risks remaining, especially for military exposure,” they said, as quoted by CNBC. 

“MP’s unique mine-to-magnet vertical integration positions the company as the ex-China leader ready to immediately begin addressing these concerns, although it will ultimately take multiple players over many years to sort out.”

Rare Earth Stocks to Buy: USA Rare Earth

USA Rare Earth (NASDAQ: USAR) is a development-stage critical minerals company focused on advancing a fully integrated rare earth element (REE) and lithium project in the United States.

The financial crisis of 2007-2008 introduced the phrase “too big to fail” as it related to the top U.S. banks. In 2025, the term applied to USA Rare Earth might be “too important to fail.”

The company recently announced that the United Kingdom (UK) approved USAR’s acquisition of Less Common Metals (LCM) positions the company to be a critical second source for rare earths.

It’s important to note, however, that USAR is still a development-stage company and won’t begin commercial operations until 2026, at the earliest.

Analysts at Benchmark have a buy rating on the USAR stock. The firm cites a recent executive order from President Trump that prioritizes the development of rare earths in the United States. They also cited the company’s commercial production of rare earth magnets by 2026.

Rare Earth Stocks to Buy: Lynas Rare Earth

Another way to trade or invest in rare earth stocks is with Lynas Rare Earth (OTCMKTS: LYSCF). The Australian company engages in the exploration, development, mining, extraction, and processing of rare earth minerals primarily in Australia and Malaysia. The company holds an interest in the Mount Weld project, Western Australia.

LYSCF stock is not traded on a major U.S. exchange. As a consequence it doesn’t receive significant analyst coverage. Nevertheless, risk-tolerant investors will note that the stock is up more than 145% in 2025, making it one of the top choices in this promising sector.

Rare Earth Stocks to Buy: VanEck Rare Earth and Strategic Metals ETF

Investing in rare earth stock is still in the speculative stage. That doesn’t mean it won’t be profitable. But that day is not today. One way for you to hedge against downside risk in any specific stock is with the VanEck Rare Earth and Strategic Metals ETF (NYSEARCA: REMX).

With an expense ratio of 0.56%, the ETF provides direct access to the rare earth and strategic metals markets. Plus, according to VanEck, “Companies must derive at least 50% of total revenues from the rare earth/strategic metals industry to be added to the Index.”

The fund provides exposure to a variety of sectors and subsectors within the Materials and Metals & Mining sectors. Over 75% of the fund’s holdings are from U.S., Chinese and Australian companies.

The Time is Now

Rare earth stocks remain a high-risk, high-reward corner of the market, but geopolitical tensions continue to make them impossible to ignore. China’s latest restrictions show how quickly supply chains can be disrupted, especially for the U.S. defense sector.

For investors, the best approach is selective exposure, favoring established producers, promising U.S. developers, or diversified ETFs.