U.S. Accelerates Efforts to Reduce Reliance on Chinese Rare Earths
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 09 2026
0mins
Source: Fool
- Rare Earth Landscape: China dominates the rare-earth elements market, controlling 70% of extraction and 90% of processing, which poses significant risks for U.S. resource dependence, necessitating urgent measures to ensure national security and economic independence.
- Domestic Supply Chain Investment: The U.S. is heavily investing in revitalizing its domestic supply chains and exploring ocean-floor mining to reduce reliance on foreign rare earths, with TMC leading the charge after receiving crucial regulatory approval.
- Ocean Mining License: NOAA has approved TMC's expanded ocean mining exploration license, covering an additional 122,000 square kilometers, with estimates suggesting over 1 billion tonnes of polymetallic nodules containing nickel, cobalt, and copper, all of which are vital for various industries.
- Environmental Impact Assessment: Despite the license approval, TMC faces significant opposition from environmental groups, as NOAA prepares an Environmental Impact Statement to evaluate potential ecological impacts, which could affect the project's progress and public acceptance.
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Analyst Views on TMC
Wall Street analysts forecast TMC stock price to rise
3 Analyst Rating
3 Buy
0 Hold
0 Sell
Strong Buy
Current: 5.110
Low
6.50
Averages
8.33
High
11.00
Current: 5.110
Low
6.50
Averages
8.33
High
11.00
About TMC
TMC the metals company Inc. is a deep-sea minerals exploration company. The Company is focused on the collection and processing of polymetallic nodules found on the seafloor in international waters of the Clarion Clipperton Zone in the Pacific Ocean (CCZ), located approximately 1,300 nautical miles southwest of San Diego, California. The CCZ is a geological submarine fracture zone of abyssal plains and other formations in the Eastern Pacific Ocean, with a length of around 4,500 miles that spans approximately 1,737,000 square miles. These nodules contain high grades of four metals (nickel, copper, cobalt, manganese) which can be used as feedstock for battery cathode precursors (nickel, cobalt and manganese sulfates, or intermediate nickel-copper-cobalt matte) for electric vehicles (EV) and energy storage markets; copper cathode for EV wiring, energy transmission and other applications, and manganese silicate for manganese alloy production required for steel production.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Analysis of Investment Appeal in Rare Earth Metals
- Market Dominance: Currently, most of the world's supply of rare earth metals comes from China, and MP Materials, as the only rare earth mining and processing company in the U.S., leverages this geopolitical advantage to attract long-term investor interest.
- Profitability Improvement: MP Materials achieved an adjusted earnings per share of $0.03 in Q1 2026, demonstrating its sustainable profitability in the rare earth sector, which enhances investor confidence.
- Clear Competitive Advantage: Compared to TMC The Metals Company and USA Rare Earth, MP Materials has established a mature operational framework, avoiding high capital expenditures and execution risks, thus securing a favorable position in a high-risk industry.
- Long-Term Investment Potential: Given that the rare earth metals industry is still developing, MP Materials' profitability and mature business model make it an ideal choice for investors looking to hold stocks over the next decade, offering a good risk-reward balance.
See More
MP Materials' Competitive Edge in Rare Earth Metals
- Strong Market Demand: Rare earth metals are crucial for modern technology, with demand expected to remain high, positioning MP Materials favorably as a long-term investment due to its mining and processing operations based in the U.S.
- Notable Profitability: MP Materials reported positive adjusted earnings of $0.03 per share in Q1 2026, making it the only profitable player in the rare earth sector, which provides a compelling advantage in a high-risk industry.
- Competitor Analysis: Compared to TMC The Metals Company and USA Rare Earth, MP Materials has established a mature operational model, while its competitors are still in development phases, facing higher capital investment and execution risks.
- Strategic Investment Opportunity: Although MP Materials was not included in The Motley Fool Stock Advisor's current top picks, its established business model and profitability in the rare earth sector make it an attractive choice for investors.
See More
TMC Advances Deep-Sea Mining Permit Application Amid Regulatory Challenges
- Permit Application Progress: TMC's U.S. subsidiary plans to apply for a deep-sea mining permit in the Pacific's Clarion-Clipperton zone, and despite regulatory hurdles, the application has received NOAA certification, indicating compliance and potential for advancement.
- Strong Market Performance: TMC's stock has risen over 23% this year, while its subsidiary TMCR has seen an 80% increase since its April listing, reflecting market optimism about its deep-sea mining potential, even though the company has yet to achieve profitability.
- U.S. Government Support: The U.S. Department of Defense is seeking to break China's monopoly on critical minerals, and TMC's domestic license will open up multi-year procurement paths and federal funding, further strengthening its market position.
- Processing Facility Development: TMC is advancing feasibility studies to establish a domestic processing and refining facility in Brownsville, Texas, which will position it as a strong candidate for multi-million-dollar federal grants, enhancing its commercial value.
See More
Canadian Company Seeks Permit for Pacific Ocean Mining
- Mining Permit Application: TMC The Metals Company's U.S. subsidiary is applying for a permit to mine rare metals from the Pacific seabed, which is expected to drive the stock price up over 23% this year while providing essential metals for the clean energy transition.
- Strong Stock Performance: The company's stock has risen over 23% this year, and its subsidiary, The Metals Royalty Company, has seen an 80% increase since its public trading began in April, reflecting strong market confidence in its deep-sea mining potential.
- Regulatory Challenges and Opportunities: Despite facing regulatory hurdles from the International Seabed Authority, the U.S. has not ratified the UN Convention on the Law of the Sea, creating a pathway for the company to secure domestic mining approvals, thereby strengthening its strategic position in the rare metals market.
- Domestic Processing Facility Plans: The company is advancing feasibility studies for establishing a domestic processing and refining facility in Brownsville, Texas, which, if successful, could lead to federal grants and funding under the Defense Production Act, significantly enhancing its commercial value.
See More
U.S. Accelerates Efforts to Reduce Reliance on Chinese Rare Earths
- Rare Earth Landscape: China dominates the rare-earth elements market, controlling 70% of extraction and 90% of processing, which poses significant risks for U.S. resource dependence, necessitating urgent measures to ensure national security and economic independence.
- Domestic Supply Chain Investment: The U.S. is heavily investing in revitalizing its domestic supply chains and exploring ocean-floor mining to reduce reliance on foreign rare earths, with TMC leading the charge after receiving crucial regulatory approval.
- Ocean Mining License: NOAA has approved TMC's expanded ocean mining exploration license, covering an additional 122,000 square kilometers, with estimates suggesting over 1 billion tonnes of polymetallic nodules containing nickel, cobalt, and copper, all of which are vital for various industries.
- Environmental Impact Assessment: Despite the license approval, TMC faces significant opposition from environmental groups, as NOAA prepares an Environmental Impact Statement to evaluate potential ecological impacts, which could affect the project's progress and public acceptance.
See More
TMC Secures NOAA Approval for Expanded Ocean Mining License
- Regulatory Approval: TMC The Metals Company recently received NOAA's approval to explore an additional 122,000 square kilometers of the Pacific Ocean seafloor, with estimates suggesting over 1 billion tonnes of polymetallic nodules rich in critical minerals essential for electric vehicles and defense technologies.
- Environmental Impact Assessment: As NOAA prepares an Environmental Impact Statement, TMC's exploration activities will undergo public scrutiny regarding sediment plumes and biodiversity loss, which could significantly affect its future mining plans.
- Market Competition: The U.S. is aggressively working to reduce its reliance on foreign rare-earth elements, and TMC's advancements may play a crucial role in revitalizing domestic supply chains, especially given China's dominance in 70% of extraction and 90% of processing.
- Investment Risks: Despite receiving regulatory approval, TMC remains in its early stages as a pre-revenue company, facing numerous challenges in commercial deep-sea mining, prompting investors to cautiously monitor its developments.
See More
Analysis of Investment Appeal in Rare Earth Metals
- Market Dominance: Currently, most of the world's supply of rare earth metals comes from China, and MP Materials, as the only rare earth mining and processing company in the U.S., leverages this geopolitical advantage to attract long-term investor interest.
- Profitability Improvement: MP Materials achieved an adjusted earnings per share of $0.03 in Q1 2026, demonstrating its sustainable profitability in the rare earth sector, which enhances investor confidence.
- Clear Competitive Advantage: Compared to TMC The Metals Company and USA Rare Earth, MP Materials has established a mature operational framework, avoiding high capital expenditures and execution risks, thus securing a favorable position in a high-risk industry.
- Long-Term Investment Potential: Given that the rare earth metals industry is still developing, MP Materials' profitability and mature business model make it an ideal choice for investors looking to hold stocks over the next decade, offering a good risk-reward balance.
See More
MP Materials' Competitive Edge in Rare Earth Metals
- Strong Market Demand: Rare earth metals are crucial for modern technology, with demand expected to remain high, positioning MP Materials favorably as a long-term investment due to its mining and processing operations based in the U.S.
- Notable Profitability: MP Materials reported positive adjusted earnings of $0.03 per share in Q1 2026, making it the only profitable player in the rare earth sector, which provides a compelling advantage in a high-risk industry.
- Competitor Analysis: Compared to TMC The Metals Company and USA Rare Earth, MP Materials has established a mature operational model, while its competitors are still in development phases, facing higher capital investment and execution risks.
- Strategic Investment Opportunity: Although MP Materials was not included in The Motley Fool Stock Advisor's current top picks, its established business model and profitability in the rare earth sector make it an attractive choice for investors.
See More
TMC Advances Deep-Sea Mining Permit Application Amid Regulatory Challenges
- Permit Application Progress: TMC's U.S. subsidiary plans to apply for a deep-sea mining permit in the Pacific's Clarion-Clipperton zone, and despite regulatory hurdles, the application has received NOAA certification, indicating compliance and potential for advancement.
- Strong Market Performance: TMC's stock has risen over 23% this year, while its subsidiary TMCR has seen an 80% increase since its April listing, reflecting market optimism about its deep-sea mining potential, even though the company has yet to achieve profitability.
- U.S. Government Support: The U.S. Department of Defense is seeking to break China's monopoly on critical minerals, and TMC's domestic license will open up multi-year procurement paths and federal funding, further strengthening its market position.
- Processing Facility Development: TMC is advancing feasibility studies to establish a domestic processing and refining facility in Brownsville, Texas, which will position it as a strong candidate for multi-million-dollar federal grants, enhancing its commercial value.
See More
Canadian Company Seeks Permit for Pacific Ocean Mining
- Mining Permit Application: TMC The Metals Company's U.S. subsidiary is applying for a permit to mine rare metals from the Pacific seabed, which is expected to drive the stock price up over 23% this year while providing essential metals for the clean energy transition.
- Strong Stock Performance: The company's stock has risen over 23% this year, and its subsidiary, The Metals Royalty Company, has seen an 80% increase since its public trading began in April, reflecting strong market confidence in its deep-sea mining potential.
- Regulatory Challenges and Opportunities: Despite facing regulatory hurdles from the International Seabed Authority, the U.S. has not ratified the UN Convention on the Law of the Sea, creating a pathway for the company to secure domestic mining approvals, thereby strengthening its strategic position in the rare metals market.
- Domestic Processing Facility Plans: The company is advancing feasibility studies for establishing a domestic processing and refining facility in Brownsville, Texas, which, if successful, could lead to federal grants and funding under the Defense Production Act, significantly enhancing its commercial value.
See More
U.S. Accelerates Efforts to Reduce Reliance on Chinese Rare Earths
- Rare Earth Landscape: China dominates the rare-earth elements market, controlling 70% of extraction and 90% of processing, which poses significant risks for U.S. resource dependence, necessitating urgent measures to ensure national security and economic independence.
- Domestic Supply Chain Investment: The U.S. is heavily investing in revitalizing its domestic supply chains and exploring ocean-floor mining to reduce reliance on foreign rare earths, with TMC leading the charge after receiving crucial regulatory approval.
- Ocean Mining License: NOAA has approved TMC's expanded ocean mining exploration license, covering an additional 122,000 square kilometers, with estimates suggesting over 1 billion tonnes of polymetallic nodules containing nickel, cobalt, and copper, all of which are vital for various industries.
- Environmental Impact Assessment: Despite the license approval, TMC faces significant opposition from environmental groups, as NOAA prepares an Environmental Impact Statement to evaluate potential ecological impacts, which could affect the project's progress and public acceptance.
See More
TMC Secures NOAA Approval for Expanded Ocean Mining License
- Regulatory Approval: TMC The Metals Company recently received NOAA's approval to explore an additional 122,000 square kilometers of the Pacific Ocean seafloor, with estimates suggesting over 1 billion tonnes of polymetallic nodules rich in critical minerals essential for electric vehicles and defense technologies.
- Environmental Impact Assessment: As NOAA prepares an Environmental Impact Statement, TMC's exploration activities will undergo public scrutiny regarding sediment plumes and biodiversity loss, which could significantly affect its future mining plans.
- Market Competition: The U.S. is aggressively working to reduce its reliance on foreign rare-earth elements, and TMC's advancements may play a crucial role in revitalizing domestic supply chains, especially given China's dominance in 70% of extraction and 90% of processing.
- Investment Risks: Despite receiving regulatory approval, TMC remains in its early stages as a pre-revenue company, facing numerous challenges in commercial deep-sea mining, prompting investors to cautiously monitor its developments.
See More
