By Elsa Ohlen

U.S. rare earth stocks were cautiously in the green early Thursday after losing momentum over the past few days.

MP Materials, the largest producer of rare earths in the Western Hemisphere, rose 1.1% in premarket trading. It has fallen five out of the six latest sessions, down about 30% over the period. Shares are still up 347% so far this year.

USA Rare Earth and Ramaco Resources were up 3.6% and 5.5%, respectively, ahead of the opening bell, with shares also boasting triple digit gains in 2025.

Investors are also closely watching how the U.S. is trying to move away from its reliance on China for the minerals, which are key components in everything from electric vehicles, military equipment, and chips. The U.S. Defense Department struck a deal with MP in July to secure future supply of critical minerals.

The next move for the sector could depend on whether President Donald Trump meets China's Xi Jinping next week. The pair are expected to meet on the sidelines of the APEC summit in South Korea to discuss trade.

It comes as Trump has threatened to put an additional 100% tariffs on China from Nov. 1 after Beijing said it would tighten exports of rare earths. However, Trump said Tuesday that "maybe it [a meeting] won't happen."

"US-China relations don't look to be in the best place ahead of Trump's visit to Asia," said Russ Mould, investment director at AJ Bell.

MP Materials' valuation is high by most measures, which may be cause for investors to think twice before buying into the stock. The forward price to earnings ratio is currently 108.2.

Write to Elsa Ohlen at elsa.ohlen@barrons.com

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October 23, 2025 06:35 ET (10:35 GMT)

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