Rare Earth Stocks Surge Amidst MP Materials' Successes: Critical Metals, Ramaco Resources, and MP Materials Lead the Way.

Rare earth stocks are surging in July, with MP Materials leading the way after announcing a multi-billion-dollar commitment from the Department of Defense and a $500 million partnership with Apple. Critical Metals rose 34% after announcing drilling at its Tanbreez Rare Earth Project in Greenland, while Ramaco Resources shares surged 73% after releasing a positive preliminary economic assessment for its Brook Mine in Wyoming.

Rare earth stocks have experienced significant gains in July, with MP Materials leading the way following strategic announcements. MP Materials' shares surged 51% on July 10 after securing a multi-billion-dollar commitment from the Department of Defense (DOD) and another 20% on July 15 following a $500 million partnership with Apple [1]. Other rare earth stocks, such as Critical Metals and Ramaco Resources, have also seen substantial gains, with Critical Metals' shares rising 7% and Ramaco Resources' shares up 73% since the announcement of MP's DOD deal [1].

The DOD's investment in MP Materials is part of a broader strategy to secure the domestic supply of rare earth minerals, which are critical for various military and commercial applications. The DOD's $400 million investment will fund the processing capabilities at MP Materials' Mount Pass, California, facility and enable the construction of a second magnet manufacturing plant [2]. MP Materials' partnership with Apple further underscores the growing demand for rare earth minerals in the technology sector. The company's impressive 99% price increase over the last quarter reflects the market's confidence in its strategic partnerships and expansion plans [3].

Critical Metals' shares rose 34% after announcing drilling at its Tanbreez Rare Earth Project in Greenland, while Ramaco Resources shares surged 73% after releasing a positive preliminary economic assessment for its Brook Mine in Wyoming [1]. These developments highlight the increased interest in domestic rare earth production and the potential for new supply sources.

While the DOD's investment is a significant step, it is not a panacea for the broader challenges in the rare earth supply chain. The U.S. relies heavily on imported rare earth minerals, with China controlling 92% of the market. The DOD's investment is part of a broader effort to diversify the U.S. supply chain and reduce dependence on foreign sources [4]. The growing need for rare earths is just one of several problems that the Pentagon faces, along with manufacturing supply chain challenges, an aging workforce at America's shipyards, and cost overruns on nearly all its programs. However, the demand for rare earths needs to be taken as seriously as the other issues, yet there is no easy solution [5].

Rare earth and critical minerals are essential to powering today's modern and digital world. Meeting the growing demand for these materials will require a comprehensive strategy that includes investment, partnerships, and an overall diversified approach across extraction, refinement, and recycling [5].

References:
[1] https://www.ainvest.com/news/rare-earth-stocks-surge-mp-materials-successes-closer-critical-metals-ramaco-resources-neo-performance-materials-2507/
[2] https://finance.yahoo.com/news/mp-materials-nyse-mp-announces-172728342.html
[3] https://www.instituteforenergyresearch.org/regulation/u-s-defense-department-takes-a-stake-in-a-rare-earth-company/
[4] https://fas.org/publication/unpacking-dod-and-mp-partnership/
[5] https://www.forbes.com/sites/petersuciu/2025/07/17/dod-is-the-largest-investor-in-only-american-rare-earth-mineral-mine/