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July has proven to be a massive month for rare earth mineral stocks, with MP Materials (NYSE: MP) at the forefront. On July 10, MP shares surged by nearly 51% after the company announced a multi-billion-dollar commitment from the Department of Defense (DOD). Then, on July 15, MP Materials announced a $500 million partnership with Apple (NASDAQ: AAPL). The company will supply 100% recycled rare earth magnets for Apple devices. Shares rose another 20% in response. |
However, several other rare earth stocks have also seen their shares surge as the industry is having a moment in the sun. Some are making huge moves of their own, while others are rising simply off the back of MP Materials' recent successes. Let's dive into three of these names below. |
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CRML Gains on Greenland Project Progress |
First up is Critical Metals (NASDAQ: CRML), a mining exploration and development company focused on lithium and other rare earth metals. The stock rose 7% after MP announced its DOD deal. However, shares really took off on July 15, as the company made a big announcement on the same day MP revealed the Apple partnership. |
The company announced it has begun drilling at its Tanbreez Rare Earth Project in Greenland. Particularly important is the fact that the company expects its newly installed drilling rig to significantly increase the size of its Mineral Resource Estimate (MRE). The MRE defines how much rare earth metal geologists believe is in a particular area and provides information on the certainty of these estimates. If Critical Materials increases the MRE estimate and gains a higher level of certainty around it, the value of the project increases. |
The company has almost no revenue and hopes to change this by getting production at the Tanbreez mine underway in 2026. Shares rose nearly 34% as a result of the announcement. The company also owns the rights to the Wolfsberg Lithium Project. The project is the first fully licensed hard-rock lithium mine in Europe, and the company hopes to begin production in 2026 or 2027. |
Ramaco Eyes Differentiated Rare-Earth Potential in Wyoming |
Next up is Ramaco Resources (NASDAQ: METC). Since the announcement of MP's DOD deal, Ramaco shares have been up nearly 73% as of the close of July 15. Shares rose 30% on July 10, as well as 15% on both July 14 and July 15. Ramaco has traditionally been a coal mining company. |
The company's latest project is the Brook Mine in Sheridan, Wyoming. There, it plans to extract coal but also wants rare earth minerals. On July 10, the company released an independent preliminary economic assessment (PEA) of the Brook Mine. |
The PEA found that the mine contains substantial quantities of rare earth elements and is both commercially and technologically feasible. If brought into production, the Brook Mine would be the only other operational rare earths mine in the U.S., besides MP's Mountain Pass mine in California. It would also stand out from Mountain Pass in its ability to produce a large amount of more valuable heavy rare earth elements. |
Ramaco believes the mine's output could meet 30% of the United States defense industry's demand for rare earth magnets. |
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USAR Shares Balloon Nearly 60% on MP Materials Excitement |
Last up is USA Rare Earth (NASDAQ: USAR). Since July 10, shares are up approximately 59% as of the July 15 close. Unlike the other two firms on this list, USA Rare Earth didn't release any new information that would have caused the rise in shares. Instead, the stock seems to simply be riding the coattails of MP Materials and other rare-earth names. |
The company has no revenue and is working to develop a vertically integrated rare-earth supply chain in the United States. It is building a magnet production facility in Oklahoma and hopes to open a rare earth mine in Texas in several years. The company hopes to attract federal government funding for its projects, which may now be more likely given the DOD investment in MP. |
Ultimately, rare earths have clearly become a strategic priority for the U.S. government and huge companies like Apple. This creates a significant opportunity for the names above. However, it is important to understand that small mining stocks are notoriously risky. Projects are capitally intensive and often face long lead times and regulatory hurdles. This can lead mining companies to invest years and millions of dollars with little to show for it if things don't go according to plan. |
Written by Leo Miller |
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