Every major technological revolution is powered by key raw materials. The industrial age ran on coal and steel. The oil age was built on crude. Today’s era of electrification, clean energy, and digital technology runs on rare earth elements.
These 17 elements - including neodymium (Nd) and praseodymium (Pr) - are essential for high-performance magnets that drive everything from smartphones and electric vehicle (EV) motors to wind turbines and advanced defense systems. Without them, the modern economy quite literally doesn’t work.
A Growing Geopolitical Flashpoint
For decades, the West relied almost entirely on China for rare earths. That dependence became dangerous in late 2024 when Beijing tightened export controls and banned certain shipments to the U.S. Practically overnight, rare earths moved from being a niche resource to a national security issue.
This is fueling one of the biggest industrial shifts in decades: the urgent rebuilding of rare earth supply chains in the U.S. and allied nations. The trend goes beyond mining - it includes processing, recycling, and advanced magnet manufacturing. And governments are backing it with billions of dollars in incentives, loans, and partnerships.
The Investment Angle
Unlike many commodities, demand for rare earths is virtually guaranteed to grow. EV adoption, renewable energy, AI data centers, and military modernization all require massive amounts of rare earth magnets. Global NdPr demand alone is expected to nearly double by 2030.
At the same time, supply is tight, controlled by few players, and difficult to scale. That creates a classic setup for higher prices and outsized profits for the companies that can produce - or recycle - these critical materials outside of China.
MP Leads Today - But Build a Watchlist
Currently, MP Materials (MP) is the clear leader in the West. With its Mountain Pass mine in California, government partnerships, and deals with companies like Apple, MP is positioning itself as the backbone of America’s rare earth independence.
But this is bigger than one company. Here are several names worth adding to your watchlist:
Lynas Rare Earths (LYSDY) – Australia’s rare earth giant and the largest non-China producer – up 140% in 2025.
NioCorp Developments (NB) – microcap developing a critical minerals project in Nebraska.
Neo Performance Materials (NOPMF) – Canadian processor with downstream magnet capacity.
American Rare Earths (ARRNF) – advancing projects in Arizona and Wyoming.
Each of these companies represents a different angle on the rare earth supply chain - from mining and processing to recycling and magnet production.
Bottom Line for Investors
Rare earths are no longer a niche story - they are the foundation of modern technology and national security. With demand set to soar and supply chains being rebuilt in the West, this sector represents one of the most compelling long-term opportunities of the decade. MP Materials is leading today, but a diversified watchlist across North America and Australia could capture even more of the upside as the rare earth renaissance plays out.
** The stocks mentioned above are not recommendations. Several are very small and are considered high-risk. The list is simply to educate readers on the opportunities available to the retail investor. There are several other related stocks that are not in the list above.
If you are interested in what stocks NXT Wave Research is recommending, feel free to learn more about our research offerings – where we share our top stock ideas.
Here’s to the future,
Matt McCall
Editor, Market Insights
