USA Rare Earth Faces High Risks with Mining Plans Years Away
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Market Volatility: USA Rare Earth’s stock has seen a dramatic 230% fluctuation in 2025, currently up about 20% year-to-date, but the lack of government backing renders its future uncertain, necessitating caution from investors.
- Competitive Disadvantage: Unlike MP Materials, USA Rare Earth is still in the feasibility stage of building a mine and lacks actual production capabilities, significantly diminishing its competitive edge in the rare-earth metals market.
- Capital Investment Needs: The company requires substantial capital investments to build its mine while currently operating at a loss, increasing the uncertainty around its future profitability and investment risk.
- Alternative Supply Chains: With China limiting rare-earth metal exports, other countries are seeking alternative suppliers; while USA Rare Earth has market opportunities, the challenges and time costs to realize them are considerable.
MP
$54.54+Infinity%1D
Analyst Views on MP
Wall Street analysts forecast MP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MP is 81.19 USD with a low forecast of 68.50 USD and a high forecast of 112.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
11 Buy
3 Hold
0 Sell
Strong Buy
Current: 54.210
Low
68.50
Averages
81.19
High
112.00
Current: 54.210
Low
68.50
Averages
81.19
High
112.00
About MP
MP Materials Corp. produces specialty materials that are vital inputs for electrification and other advanced technologies. The Company owns and operates the Mountain Pass Rare Earth Mine and Processing Facility (Mountain Pass) located in California. It is also developing a rare earth metal, alloy and magnet manufacturing facility in Fort Worth, Texas (Independence Facility). The Company’s segments include Materials and Magnetics. The Materials segment operates Mountain Pass, which produces refined rare earth products as well as rare earth concentrate and related products. The Materials segment primarily generates revenue from sales of rare earth concentrate, primarily sold for further distribution to a single, principal customer in China, and sales of neodymium-praseodymium (NdPr) oxide and metal, primarily sold to customers in Japan, South Korea, and broader Asia. The Magnetics segment operates the Independence Facility, where it produces magnetic precursor products.
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.
