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

The Motley Fool

by newsfeedback@fool.com (Steven Porrello)

February 14, 2026

AI-Generated Deep Dive Summary

MP Materials (NYSE: MP) and USA Rare Earth (NASDAQ: USAR) are two companies vying to establish a U.S.-based supply chain for rare-earth metals and magnets. Both firms aim to address the critical need for domestic production in this essential sector, but their approaches and risk profiles differ significantly. Investors looking to capitalize on this opportunity must weigh factors like operational stability, growth potential, and market positioning. MP Materials is currently the more established player, operating the only active rare-earth mine in the U.S. at Mountain Pass, California. The company also runs a magnet manufacturing plant in Fort Worth, Texas, known as Independence, and is expanding its production capacity with the development of the "10X Facility." This project is expected to boost domestic magnet output to 10,000 metric tons, solidifying MP's position as a key player in the industry. Its existing infrastructure and track record make it a less risky option for investors. In contrast, USA Rare Earth is still in the early stages of building its infrastructure. The company has secured partnerships with major players like Toyota Motor Corporation and Denso Corporation to develop its supply chain. However, its projects are not yet operational, which introduces more uncertainty. While this could mean higher rewards if successful, it also carries greater risk for investors. The competition between MP Materials and USA Rare Earth highlights the growing demand for rare-earth metals in clean energy technologies, electric vehicles, and high-tech industries. As global supply chains become increasingly scrutinized for reliability and sustainability, both companies are positioned to benefit from a shift toward domestic production. For investors, the choice between these two stocks depends on their tolerance for risk and their long-term outlook on the sector's growth. Ultimately, the race to build a robust U.S. rare-earth supply chain is not just about which company will "make you

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Originally published on The Motley Fool on 2/14/2026