Quick Read
-
MP Materials (MP) reported Q1 2026 revenue of $90.65M, up 49% year over year, with NdPr production hitting a record 917 metric tons and a Department of Energy price protection agreement generating $42.3M in specialized income. USA Rare Earth (USAR) posted Q1 first revenue of $5.70M from its Less Common Metals UK subsidiary and secured a $1.6B Department of Commerce CHIPS funding package. Energy Fuels (UUUU) operates the only domestic conventional uranium mill and processes monazite for rare earth oxides, avoiding the radioactive byproduct hurdles that derailed competitors.
-
China controls every step of the rare earth supply chain from mining through magnet-making, and building domestic U.S. capacity is described as an impossibility overnight, forcing American companies to pursue multi-year permitting and commissioning timelines while competing against Beijing’s consolidated advantage.
-
The analyst who called NVIDIA in 2010 just named his top 10 stocks and MP Materials wasn’t one of them. Get them here FREE.
The most quotable framing of America’s rare earth predicament this year came from outside the rare earth industry itself. Speaking with Bloomberg Businessweek on May 22, 2026, REalloys CEO Lipi Sternheim reduced geopolitics to a single line: “It used to be oil and OPEC. It’s now, OPEC includes many countries, so there are checks and balances. Here you have China against everybody.”
That is the thesis investors need to internalize. Rare earth magnets sit inside missiles, iPhones, and humanoid robots. The supply chain runs through mining, separation of light and heavy elements, processing complicated by radioactive uranium and thorium, metallizing, and magnet-making. China controls every step, and Sternheim’s own heavy rare earth processing for dysprosium and terbium is being built 35 kilometers from Uranium City in Saskatchewan because Canadian permits move faster than EPA approval. Lynas dropped plans for a Texas processing plant this year over radioactive-materials permitting, and Sternheim’s summary is blunt: building domestic capacity “overnight is an impossibility.”
Prediction markets agree, as Polymarket’s question on whether China would announce rare earth export relief by May 22, around the Trump-Xi summit, resolved “No” with a final price of 0.001 on volume of 55,632, even as a parallel market on a Boeing aircraft purchase resolved “Yes” at 0.999. Beijing will trade jets, but it will not trade leverage.
The analyst who called NVIDIA in 2010 just named his top 10 stocks and MP Materials wasn’t one of them. Get them here FREE.
MP Materials: The Furthest Along
MP Materials (NYSE:MP) is the closest thing the U.S. has to a vertically integrated answer. Q1 2026 revenue hit $90.65 million, up 49% year over year, with adjusted EPS of $0.03 versus a -$0.01 estimate, the fourth straight beat. NdPr production set a record at 917 metric tons, and the Magnetics segment grew 306% year over year. The Department of Energy price protection agreement, with a strategic market floor, generated $42.3 million of specialized income in the quarter (see the Q1 2026 8-K).
James Litinsky has paired that government backstop with a long-term Apple agreement for U.S.-produced rare earth magnets and a General Motors ramp in 2026. MP also ceased all direct concentrate sales to China starting July 2025. Shares are up 28% year to date and 221% over the past year, closing at $64.46 on May 22.
USA Rare Earth: The Capital-Heavy Challenger
USA Rare Earth (NASDAQ:USAR), led by CEO Barbara Humpton, is taking the acquisition-led route. Q1 2026 produced first revenue of $5.70 million from the Less Common Metals UK subsidiary, an adjusted loss of -$0.12 per diluted share, and a cash balance of $1.75 billion after the January $1.5 billion PIPE. The company has a definitive agreement to acquire Serra Verde for roughly $2.8 billion, described by Humpton as “the only scaled producer of all four magnetic rare earths outside Asia,” plus a $1.6 billion Department of Commerce CHIPS funding package targeted to finalize this month.
Stillwater Phase 1a was commissioned in March 2026, with 600 MTPA targeted by Q4 2026. The stock has run 113% year to date to $25.30, with an analyst target price of $37.43 and seven buy ratings. Valuation is the obvious risk: a price-to-sales ratio of 738 assumes flawless execution on Round Top, Serra Verde, and the Carester partnership in Lacq, France.
Energy Fuels: The Uranium-Plus-Monazite Hybrid
Energy Fuels (NYSE:UUUU) is the market’s true wild card. Their White Mesa Mill in Utah, the only operating conventional uranium mill domestically, already processes monazite for rare earth oxides, neatly solving the radioactive byproduct hurdle that killed Lynas’s Texas project. Q1 2026 EPS came in at -$0.04 versus a -$0.02 estimate, shares closed at $18.04, up 301% over the past year but down 20% in the last month as uranium momentum cooled.
What To Watch
Sternheim’s OPEC analogy reframes the investment case, as oil shocks resolve when prices invite new producers. Rare earth shocks resolve only when permits clear, separation circuits are commissioned, and magnet lines hit nameplate capacity. Near-term catalysts: MP’s heavy rare earth separation commissioning at Mountain Pass, USAR’s Commerce funding signature and Stillwater ramp, and whether Energy Fuels can monetize its monazite advantage while peers wait on the EPA. The reshoring trade is real, the timeline is measured in years, not summits.
The analyst who called NVIDIA in 2010 just named his top 10 AI stocks
This analyst’s 2025 picks are up 106% on average. He just named his top 10 stocks to buy in 2026. Get them here FREE.
