Yesterday, the federal government announced $1 billion in new funding for a sector most investors have never looked at twice. Trump’s Critical Minerals Accelerator, signed into law on April 20, puts real money behind something the Pentagon has been warning about for years. America is dangerously dependent on China for the raw materials that power everything from F-35 fighter jets to iPhones to electric vehicles.
About 70% of U.S. rare earth imports come from China. In April of last year, China retaliated to U.S. tariffs by restricting exports on seven rare earth elements. That was a warning shot. The new law is our response.
When Washington, the Pentagon, and Apple all start backing the same handful of companies, everyday investors should pay attention. I pulled three names I think belong on every serious investor’s radar. One is the established leader. One is a small, fast-growing upstart. One gives you dual exposure to both critical minerals and the nuclear power buildout.
A few honest words before we get to the picks. This sector is volatile. Prices move hard in both directions. These are long-term plays, not overnight winners. If you get interested, start small and give the thesis time to work. We’re talking about a 5 to 10 year trend, not a next-quarter story.
MP Materials (MP)
MP Materials owns and operates Mountain Pass in California, the only working rare earth mine and processing facility in the United States. That single fact makes the company a national strategic asset. The Pentagon noticed. In July of last year, the U.S. government took a 15% equity stake in MP, becoming its largest shareholder. Apple followed with a $500 million commitment to buy magnets made from MP material at a new facility in Texas.
The stock has had a remarkable run, up roughly 340% in 2025 and another 46% so far this year, trading around $89 per share. That isn’t cheap. But MP is building a fully integrated U.S. rare earth supply chain from mine to magnet, and the Texas facility is expected to be the largest neodymium magnet plant in the Western Hemisphere. If you want a single pure-play way to own America’s answer to China’s rare earth dominance, this is it.
Risks are real. The stock is priced for flawless execution. Rare earth prices are notoriously cyclical. And if China ever decides to flood the market with cheap material, margins get squeezed. But with Washington and Apple both invested in the company’s success, the downside is better protected than most small caps.
USA Rare Earth (USAR)
USA Rare Earth is the high-risk, high-reward pick on this list. The company went public less than a year ago and the stock is already up more than 200% since its IPO, trading around $47. It owns the Round Top deposit in west Texas, which contains 17 different rare earth elements plus lithium and gallium. That kind of geological diversity is rare, and gallium matters because China just restricted gallium exports last year.
The company is also building a neodymium magnet facility in Stillwater, Oklahoma. If Round Top pans out as projected, USAR becomes one of the most strategically important small caps in the country. The word “if” is doing a lot of work in that sentence. This is earlier-stage than MP. Production is years away. Cash burn is real.
I’d treat USAR as a smaller position in a long-term basket. Not a full-size bet. But in a portfolio where you want exposure to the next generation of American critical minerals players, it’s hard to ignore a company sitting on 17 rare earths in a friendly jurisdiction.
Energy Fuels (UUUU)
Energy Fuels is the sleeper pick, trading around $14. It operates the White Mesa Mill in Utah, the only facility in the United States that can process both uranium concentrate and rare earth elements at commercial scale. That is a genuinely unique asset. The same facility that feeds the uranium supply chain for American nuclear reactors can also produce separated rare earth oxides.
That dual exposure matters. AI power demand is driving a nuclear renaissance. The federal government wants to quadruple nuclear output by 2050. That means uranium buyers need domestic supply. Separately, the same administration is writing billion-dollar checks for rare earth producers. Energy Fuels benefits from both trends from a single facility.
The stock is less crowded than MP or USAR, which is part of the appeal. It also comes with less hype, less execution risk on new construction, and a real operating mill producing real material today. If you want a more conservative entry into the critical minerals theme with a nuclear kicker, UUUU deserves a look.
How to Approach This
None of these three names belong in the core of a retirement portfolio. They’re volatile, sector-specific, and dependent on policy and geopolitics. But a small basket across all three, say 2 to 5% of a portfolio split among them, gives you exposure to a trend that has Washington, the Pentagon, and Apple writing the checks.
When the federal government decides something is a national security priority and puts real dollars behind it, the companies in that sector usually benefit for years. This is one of those moments. Keep an eye on these names.
— Tom
