Al Root

Rare-earth stocks just can't catch a break.

Shares of MP Materials, the largest rare-earth producer in the Western Hemisphere, fell again on Monday, despite positive comments from a Wall Street analyst.

MP stock was off 2.8% at just under $57 a share, while the S&P 500 and Dow Jones Industrial Average were flat and down 0.1%, respectively. Shares of aspiring rare-earth miners USA Rare Earth and Ramaco Resources were down 0.3% and 1.4%, respectively.

The red numbers carry on a painful trend. The three stocks are down 45% over the past month. Early in October, investors got overly excited by what threatened export restrictions by China meant for the stocks -- two of which don't produce rare-earth materials yet. Then, shares crashed back down after trade tensions between the U.S. and China cooled.

China dominates rare-earth production with an estimated 85% of global processing capacity. The materials are a small but key part of countless technology products, ending up in everything from iPhones to fighter jets.

Despite the volatility, the U.S. is moving to reduce its dependence on China. In July, the Defense Department signed a deal with MP, which included an equity stake, price floor, and guaranteed customer for the rare-earth magnets that MP is building the capacity to produce.

The change in policy has had its effect. Shares of MP are up 276% this year. USA Rare Earth and Ramaco are up 26% and 110%, respectively.

A lot is going right for MP and the rare-earth industry.

D.A. Davidson analyst Matt Summerville pointed out in a Monday report that MP was making "operational progress," citing mining improvements and agreements with Apple for rare earth recycling. He rates MP shares Buy and has an $82 price target.

Summerville's comments, however, weren't enough to arrest Monday's slide.

Write to Al Root at allen.root@dowjones.com

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November 17, 2025 11:47 ET (16:47 GMT)

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