Surge in Rare Earth Mineral Stocks This July
July has been a noteworthy month for rare earth mineral stocks, with MP Materials taking the lead. On July 10th, shares of MP soared nearly 51% following an announcement regarding substantial commitments from the Department of Defense to support U.S. rare earth magnet independence. A few days later, on July 15th, MP revealed a $500 million partnership with Apple, which will supply the tech giant with fully recycled rare earth magnets. This news further propelled the stock, leading to an additional 20% increase in value.
As MP enjoys the spotlight, several other companies in the rare earth sector have seen their stocks also climb significantly. Some have made impressive moves independently, while others have benefitted from the rising tide created by MP’s recent successes. Let’s explore three such companies.
CRML Making Strides on Greenland Project
First up is Critical Metals (NASDAQ: CRML), a company focused on lithium and other rare earth metals. Following MP’s DOD announcement, CRML’s stock climbed about 7%. However, it really took off on July 15th, coinciding with news of MP’s partnership with Apple.
The company has started excavation at the Tanbreez Rare Earth Project in Greenland, where it anticipates that a new drilling rig will greatly expand its mineral resource estimates. This is significant as it provides geologists with a clearer picture of the rare earth metals presumed to lie in the area, ultimately increasing the project’s value. Currently, CRML has minimal revenue but aims to kickstart production at the Tanbreez mine in 2026. The company also holds rights to the Wolfsberg Lithium Project, which is set to be Europe’s first licensed hard rock lithium mine, with production expected to begin between 2026 and 2027.
Ramaco Resources Finds Rare Earth Potential in Wyoming
Next is Ramaco Resources (NASDAQ: METC). Since the announcement related to MP’s DOD commitments, Ramaco’s shares have skyrocketed almost 73%. The stock rose significantly, especially with a 30% jump on July 10th alone. Originally a coal mining firm, Ramaco’s latest venture involves the Brook Mine in Sheridan, Wyoming, where they plan to extract both coal and rare earth minerals.
An independent preliminary economic assessment revealed the mine’s potential for a considerable amount of rare earth elements and confirmed its commercial viability. If brought into production, Brook Mine could be another operational rare earth mine in the U.S., alongside MP’s Mountain Pass Mine. Brook boasts unique advantages, particularly its capability to generate more valuable heavy rare earth elements. Ramaco estimates that this mine could meet about 30% of the U.S. defense sector’s demand for rare earth magnets.
USA Rare Earth Experiences Stock Surge Alongside MP Materials
Lastly, there’s USA Rare Earth (NASDAQ: USAR). From July 10th, their stocks have jumped about 59% through July 15th. Interestingly, USA Rare Earth didn’t announce anything new to spark this increase; instead, it seems to be riding the coattails of MP Materials’ momentum.
The company currently lacks revenue and is focused on building a vertically integrated rare earth supply chain within the U.S., including a magnet production facility in Oklahoma and plans for a rare earth mine in Texas within the next couple of years. They are actively seeking federal funds to support their project.
Rare earths are clearly becoming a strategic priority for the U.S. government and major corporations like Apple. This creates promising opportunities for the companies mentioned. However, it’s essential to recognize that investing in small mining stocks carries significant risks. Projects generally require considerable investment and often experience lengthy timelines and regulatory challenges. This leads to a situation where companies might spend millions over years without realizing their plans.
In conclusion, one should exercise caution when considering investments in essential metals.
