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USAR vs. MP: Which Rare-Earth Stock Has an Edge Right Now?
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Key Takeaways
USAR commissioned Phase 1a in Oklahoma, targeting 600 metric tons of NdFeB magnets by 2026.
MP lifted Q1 revenues 49% to $90.6M as NdPr and rare-earth oxide output hit records.
USAR secured grants, financing and federal support while expansion costs pressured results.
USA Rare Earth, Inc. (USAR - Free Report) and MP Materials (MP - Free Report) are two prominent players operating in the Zacks Mining - Miscellaneous industry. Both companies are based in the US and as peers, each is engaged in the extraction and development of important minerals that support electrification, clean energy technologies and advanced manufacturing.
Both companies operate in highly capital-intensive mining sectors that require substantial upfront investments, extended project timelines and complex regulatory approvals. Their businesses are also closely tied to large-scale infrastructure development and the adoption of advanced processing technologies. Accelerating demand for critical minerals and metals used in electric vehicles, battery storage and renewable energy systems is opening up significant long-term growth opportunities. However, the ongoing Iran-Israel conflict has heightened supply-side concerns by disrupting global trade flows and impacting energy markets, leading to tighter commodity supplies and increased price volatility.
The Case for USAR
USAR has reached a major milestone with the commissioning of Phase 1a of its commercial magnet production line at the Stillwater facility in Oklahoma, enabling it to begin fulfilling customer orders for sintered neodymium-iron-boron (NdFeB) permanent magnets in the second quarter of 2026.
The commissioning demonstrates USAR’s ability to execute a complex, multi-step manufacturing process at commercial scale. The Stillwater facility converts rare earth and metallic elements into ultra-fine powder, which is refined through jet milling in a controlled environment before being shaped, coated and magnetized into NdFeB permanent magnets used in defense, aerospace, automotive and other high-growth industries.
Phase 1a is expected to achieve an annual production run rate of 600 metric tons by the end of 2026, while the planned Phase 1b expansion is projected to double total capacity to 1,200 metric tons annually by the first quarter of 2027. Once fully operational, Stillwater is expected to be among the first large-scale NdFeB magnet manufacturing facilities in the United States, supporting a more resilient domestic rare earth supply chain.
USAR is also strengthening its long-term growth platform through strategic investments and partnerships. In May 2026, the company secured a $14.2 million grant from the Texas Semiconductor Innovation Fund to boost the development of its Round Top Mountain rare earth project in West Texas, aimed at supporting domestic supply chains for critical minerals used in defense, semiconductors, AI and advanced technologies.
To support expansion, USAR reinforced its balance sheet through financing and acquisitions. In January 2026, the company completed a $1.5 billion PIPE financing to fund upgrades at the Stillwater facility, expand magnet finishing operations and complete Line 1b, increasing planned NdFeB magnet production capacity to roughly 1,200 metric tons. In March 2026, USAR agreed to acquire Texas Mineral Resources Corp. in an all-stock transaction valued at approximately $73 million, giving it full ownership of the Round Top Project. The company expects commercial production at Round Top to begin in 2028, with a long-term goal of processing nearly 40,000 metric tons of rare earth and critical mineral feedstock per day by 2030. In addition, the November 2025 acquisition of Less Common Metals is expected to provide critical metal and alloy feedstock for the Stillwater plant.
USAR also secured federal support in January 2026 through a non-binding Letter of Intent with the U.S. Department of Commerce and collaboration with the U.S. Department of Energy. Under the CHIPS Program, the Department of Commerce proposed $277 million in federal funding alongside a $1.3 billion senior secured loan, representing a potential total support package of $1.6 billion.
Despite these growth catalysts, USAR remains in the early stages of commercialization and continues to report losses as it scales operations. Although revenue generation began following the acquisition of Less Common Metals, rising operating costs tied to expansion, acquisitions and workforce growth continue to pressure profitability.
In first-quarter 2026, selling, general and administrative expenses rose to $21.2 million from $7 million a year earlier, driven by higher legal and consulting expenses, increased headcount, recruiting costs and other operational spending. Research and development expenses also climbed sharply to $14.2 million from $1.7 million in the prior-year quarter, reflecting higher employee-related expenses and development investments.
The Case for MP Materials
MP Materials operates the Mountain Pass mine and processing facility, producing refined rare-earth products, concentrates and related materials. The company also owns the Independence facility in Fort Worth, TX, where it produces magnetic precursor products and began producing neodymium-iron-boron (NdFeB) permanent magnets in December 2025.
In 2025, MP achieved several strategic milestones, including a long-term agreement to supply U.S.-made recycled rare-earth magnets to Apple and a public-private partnership with the U.S. Department of War (DoW) to accelerate the development of a domestic magnet supply chain. Supported by government incentives, the company is constructing its second domestic magnet manufacturing site, the 10X Facility in Northlake, TX, which is expected to expand total U.S. magnet production capacity to 10,000 metric tons. At the same time, MP continues to scale operations at Independence, while commissioning activities for heavy rare earth separation are expected to begin soon at Mountain Pass.
Operational performance remained strong in the first quarter of 2026 as the company continued expanding production and downstream capabilities. NdPr production reached a record 917 metric tons, increasing 63% year over year due to higher separated-product output. Rare-earth oxide concentrate production also hit a quarterly record of 12,983 metric tons, up 6% year over year, supported by improved recoveries and stronger operating efficiencies.
Total company revenues rose 49% year over year to $90.6 million in the quarter, supported by stronger performance in both the Materials and Magnetics segments. MP also recognized $42.3 million in income related to its price protection agreement with the DoW.
However, profitability remains under pressure as the company transitions toward higher-value separated rare-earth products and magnetic materials. Cost of sales increased 52% in the quarter, while SG&A expenses rose 39%. Start-up costs surged more than 500% due to magnet production and chlor-alkali facility ramp-ups, while advanced project and development expenses climbed 302%.
MP Materials reported an operating loss of $24 million in the first quarter of 2026, an improvement from a loss of $34.8 million in the prior-year quarter. The company also reported adjusted earnings of three cents per share compared with an adjusted loss of 12 cents per share a year earlier. Looking ahead, management expects cost pressures to persist as production ramps up further, with start-up expenses likely to remain elevated in the coming quarters.
How Does the Zacks Consensus Estimate Compare for USAR & MP?
The Zacks Consensus Estimate for USAR’s 2026 bottom line is pegged at a loss of 33 cents per share. Also, the company’s consensus estimate for the 2027 bottom line is pegged at a loss of 32 cents per share.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MP’s 2026 bottom line is pegged at 16 cents per share. Also, the company’s consensus estimate for 2027 bottom line is pegged at $1.06 per share.
Image Source: Zacks Investment Research
Price Performance and Valuation of USAR & MP
In the past six months, USAR’s shares have surged 122.1%, while MP stock has gained 12.3%.
Image Source: Zacks Investment Research
USA Rare Earth is trading at a forward 12-month price-to-earnings ratio of negative 81.92X, while MP Materials’ forward earnings multiple sits at 193.29X.
Image Source: Zacks Investment Research
Final Take
USAR recently commissioned Phase 1a of its Stillwater magnet production facility and strengthened its long-term growth strategy through acquisitions, financing, government support and expansion plans to build a domestic rare earth supply chain. However, despite starting to generate revenues, the company continues to face near-term profitability pressure from rising operating and research & development expenses tied to commercialization and expansion.
MP Materials benefits from integrated operations, expanding production capacity and strategic partnerships with Apple and the U.S. government, positioning it well to capitalize on the growing domestic rare-earth supply chain. However, near-term profitability may remain under pressure due to elevated operating and expansion-related costs.
Given these factors, MP seems a better pick for investors than USAR currently. While MP Materials carries a Zacks Rank #3 (Hold) at present, USA Rare Earth has a Zacks Rank #4 (Sell).
View the Zacks #1 Rank List
Image: Bigstock
USAR vs. MP: Which Rare-Earth Stock Has an Edge Right Now?
Key Takeaways
USA Rare Earth, Inc. (USAR - Free Report) and MP Materials (MP - Free Report) are two prominent players operating in the Zacks Mining - Miscellaneous industry. Both companies are based in the US and as peers, each is engaged in the extraction and development of important minerals that support electrification, clean energy technologies and advanced manufacturing.
Both companies operate in highly capital-intensive mining sectors that require substantial upfront investments, extended project timelines and complex regulatory approvals. Their businesses are also closely tied to large-scale infrastructure development and the adoption of advanced processing technologies. Accelerating demand for critical minerals and metals used in electric vehicles, battery storage and renewable energy systems is opening up significant long-term growth opportunities. However, the ongoing Iran-Israel conflict has heightened supply-side concerns by disrupting global trade flows and impacting energy markets, leading to tighter commodity supplies and increased price volatility.
The Case for USAR
USAR has reached a major milestone with the commissioning of Phase 1a of its commercial magnet production line at the Stillwater facility in Oklahoma, enabling it to begin fulfilling customer orders for sintered neodymium-iron-boron (NdFeB) permanent magnets in the second quarter of 2026.
The commissioning demonstrates USAR’s ability to execute a complex, multi-step manufacturing process at commercial scale. The Stillwater facility converts rare earth and metallic elements into ultra-fine powder, which is refined through jet milling in a controlled environment before being shaped, coated and magnetized into NdFeB permanent magnets used in defense, aerospace, automotive and other high-growth industries.
Phase 1a is expected to achieve an annual production run rate of 600 metric tons by the end of 2026, while the planned Phase 1b expansion is projected to double total capacity to 1,200 metric tons annually by the first quarter of 2027. Once fully operational, Stillwater is expected to be among the first large-scale NdFeB magnet manufacturing facilities in the United States, supporting a more resilient domestic rare earth supply chain.
USAR is also strengthening its long-term growth platform through strategic investments and partnerships. In May 2026, the company secured a $14.2 million grant from the Texas Semiconductor Innovation Fund to boost the development of its Round Top Mountain rare earth project in West Texas, aimed at supporting domestic supply chains for critical minerals used in defense, semiconductors, AI and advanced technologies.
To support expansion, USAR reinforced its balance sheet through financing and acquisitions. In January 2026, the company completed a $1.5 billion PIPE financing to fund upgrades at the Stillwater facility, expand magnet finishing operations and complete Line 1b, increasing planned NdFeB magnet production capacity to roughly 1,200 metric tons. In March 2026, USAR agreed to acquire Texas Mineral Resources Corp. in an all-stock transaction valued at approximately $73 million, giving it full ownership of the Round Top Project. The company expects commercial production at Round Top to begin in 2028, with a long-term goal of processing nearly 40,000 metric tons of rare earth and critical mineral feedstock per day by 2030. In addition, the November 2025 acquisition of Less Common Metals is expected to provide critical metal and alloy feedstock for the Stillwater plant.
USAR also secured federal support in January 2026 through a non-binding Letter of Intent with the U.S. Department of Commerce and collaboration with the U.S. Department of Energy. Under the CHIPS Program, the Department of Commerce proposed $277 million in federal funding alongside a $1.3 billion senior secured loan, representing a potential total support package of $1.6 billion.
Despite these growth catalysts, USAR remains in the early stages of commercialization and continues to report losses as it scales operations. Although revenue generation began following the acquisition of Less Common Metals, rising operating costs tied to expansion, acquisitions and workforce growth continue to pressure profitability.
In first-quarter 2026, selling, general and administrative expenses rose to $21.2 million from $7 million a year earlier, driven by higher legal and consulting expenses, increased headcount, recruiting costs and other operational spending. Research and development expenses also climbed sharply to $14.2 million from $1.7 million in the prior-year quarter, reflecting higher employee-related expenses and development investments.
The Case for MP Materials
MP Materials operates the Mountain Pass mine and processing facility, producing refined rare-earth products, concentrates and related materials. The company also owns the Independence facility in Fort Worth, TX, where it produces magnetic precursor products and began producing neodymium-iron-boron (NdFeB) permanent magnets in December 2025.
In 2025, MP achieved several strategic milestones, including a long-term agreement to supply U.S.-made recycled rare-earth magnets to Apple and a public-private partnership with the U.S. Department of War (DoW) to accelerate the development of a domestic magnet supply chain. Supported by government incentives, the company is constructing its second domestic magnet manufacturing site, the 10X Facility in Northlake, TX, which is expected to expand total U.S. magnet production capacity to 10,000 metric tons. At the same time, MP continues to scale operations at Independence, while commissioning activities for heavy rare earth separation are expected to begin soon at Mountain Pass.
Operational performance remained strong in the first quarter of 2026 as the company continued expanding production and downstream capabilities. NdPr production reached a record 917 metric tons, increasing 63% year over year due to higher separated-product output. Rare-earth oxide concentrate production also hit a quarterly record of 12,983 metric tons, up 6% year over year, supported by improved recoveries and stronger operating efficiencies.
Total company revenues rose 49% year over year to $90.6 million in the quarter, supported by stronger performance in both the Materials and Magnetics segments. MP also recognized $42.3 million in income related to its price protection agreement with the DoW.
However, profitability remains under pressure as the company transitions toward higher-value separated rare-earth products and magnetic materials. Cost of sales increased 52% in the quarter, while SG&A expenses rose 39%. Start-up costs surged more than 500% due to magnet production and chlor-alkali facility ramp-ups, while advanced project and development expenses climbed 302%.
MP Materials reported an operating loss of $24 million in the first quarter of 2026, an improvement from a loss of $34.8 million in the prior-year quarter. The company also reported adjusted earnings of three cents per share compared with an adjusted loss of 12 cents per share a year earlier. Looking ahead, management expects cost pressures to persist as production ramps up further, with start-up expenses likely to remain elevated in the coming quarters.
How Does the Zacks Consensus Estimate Compare for USAR & MP?
The Zacks Consensus Estimate for USAR’s 2026 bottom line is pegged at a loss of 33 cents per share. Also, the company’s consensus estimate for the 2027 bottom line is pegged at a loss of 32 cents per share.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MP’s 2026 bottom line is pegged at 16 cents per share. Also, the company’s consensus estimate for 2027 bottom line is pegged at $1.06 per share.
Image Source: Zacks Investment Research
Price Performance and Valuation of USAR & MP
In the past six months, USAR’s shares have surged 122.1%, while MP stock has gained 12.3%.
Image Source: Zacks Investment Research
USA Rare Earth is trading at a forward 12-month price-to-earnings ratio of negative 81.92X, while MP Materials’ forward earnings multiple sits at 193.29X.
Image Source: Zacks Investment Research
Final Take
USAR recently commissioned Phase 1a of its Stillwater magnet production facility and strengthened its long-term growth strategy through acquisitions, financing, government support and expansion plans to build a domestic rare earth supply chain. However, despite starting to generate revenues, the company continues to face near-term profitability pressure from rising operating and research & development expenses tied to commercialization and expansion.
MP Materials benefits from integrated operations, expanding production capacity and strategic partnerships with Apple and the U.S. government, positioning it well to capitalize on the growing domestic rare-earth supply chain. However, near-term profitability may remain under pressure due to elevated operating and expansion-related costs.
Given these factors, MP seems a better pick for investors than USAR currently. While MP Materials carries a Zacks Rank #3 (Hold) at present, USA Rare Earth has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.