Top Rare-Earths Stocks Poised to Ride the U.S. Reshoring Wave

MP Materials secured a 10-year Department of Defense partnership that includes a price floor and $1.55 billion in commitments, positioning the rare-earth producer to capitalize on U.S. efforts to reduce dependence on Chinese magnet suppliers. The company also locked in a $500 million supply agreement with Apple, creating dual revenue anchors as Washington accelerates reshoring initiatives.

Both MP Materials (MP) and USA Rare Earth (UUUU) stand to benefit from federal policy aimed at onshoring rare-earth magnet production, a critical supply chain currently dominated by China. The DOD partnership provides MP with revenue visibility and downside price protection through 2034, while the Apple deal diversifies its customer base beyond defense applications.

The Motley Fool notes that execution risks remain significant for both companies, and reshoring success is not guaranteed despite government support. MP operates the only U.S. rare-earth mining and processing facility at scale, giving it a structural advantage in capturing domestic demand. UUUU remains in earlier development stages but could benefit from the same policy tailwinds driving federal investment into domestic critical minerals capacity.