When will USA Rare Earth begin producing rare-earth metals?

USA Rare Earth expects its Brazilian mine deal to close in the back half of 2026. The company also plans to build its own rare-earth metals mine, but that mine is not expected to produce rare-earth metals until 2028.

Which of the three companies is the most established?

MP Materials is the furthest along, as it already operates a mine that produces rare-earth metals and processing facilities, giving it a complete end-to-end business. On an adjusted basis, it is also the only one of the three currently generating positive earnings.

Why is supply diversity from China important?

Rare-earth metals are vital to modern technology and national defense. In 2010, China's decision to limit rare-earth metal exports led to a 10x increase in their prices in Japan, demonstrating that China has been willing to use rare-earth metals as a geopolitical bargaining chip.

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Three rare-earth metals startups vie to break China's supply grip

Yahoo Finance AI18h ago4 min read

Key takeaway

Three rare-earth metals companies—The Metals Company, USA Rare Earth, and MP Materials—are building businesses to break China's control of global rare-earth supply and capitalize on surging demand. The International Energy Agency expects rare-earth demand to grow 50% to 60% by 2040, fueled by electricity demand rising 60% between 2025 and 2045 and the rise of power-hungry technologies like artificial intelligence. While the story is compelling, only MP Materials is currently profitable on an adjusted basis, making these inherently risky startup bets.

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3 Key Points

What happened
The Metals Company, USA Rare Earth, and MP Materials are building rare-earth metals businesses to diversify supply away from China and meet growing demand. The International Energy Agency expects demand for rare-earth metals to increase by 50% to 60% by 2040, driven partly by electricity demand expected to increase 60% between 2025 and 2045.
Why it matters
Rare-earth metals are vital to modern technology and national defense, used in everything from cellphones to missile defense systems. China controls most global supply and has used export limits as a geopolitical tool—in 2010, China's decision to limit exports led to a 10x increase in prices in Japan. Diversifying supply and meeting demand is a major business opportunity.
What to watch
The three companies have different maturity levels. MP Materials operates a mine and processing facilities and generates positive adjusted earnings—the furthest along. USA Rare Earth is acquiring a Brazilian mine expected to close in the back half of 2026 and plans to build its own mine, with production not expected until 2028. The Metals Company is attempting undersea mining and is the riskiest but could offer the most long-term upside. All three have received U.S. government backing, though only MP Materials and USA Rare Earth are considered suitable for typical investors due to their more developed status.

FAQ

When will USA Rare Earth begin producing rare-earth metals?: USA Rare Earth expects its Brazilian mine deal to close in the back half of 2026. The company also plans to build its own rare-earth metals mine, but that mine is not expected to produce rare-earth metals until 2028.
Which of the three companies is the most established?: MP Materials is the furthest along, as it already operates a mine that produces rare-earth metals and processing facilities, giving it a complete end-to-end business. On an adjusted basis, it is also the only one of the three currently generating positive earnings.
Why is supply diversity from China important?: Rare-earth metals are vital to modern technology and national defense. In 2010, China's decision to limit rare-earth metal exports led to a 10x increase in their prices in Japan, demonstrating that China has been willing to use rare-earth metals as a geopolitical bargaining chip.

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