Key Points

• Shares of rare-earth stock USA Rare Earth are climbing today despite the absence of news from the company.

• A newly announced partnership between MP Materials and Apple is likely partly responsible for the rise in USA Rare Earth stock today.

• USA Rare Earth is developing a rare-earth magnet production facility in Oklahoma.

• 10 stocks we like better than Usa Rare Earth ›

Extending their rise from Monday, shares of rare-earth stock USA Rare Earth (NASDAQ: USAR) are rising higher today. Like yesterday, the company hasn't announced any news today that would drive investors to bid the stock higher. But, also like yesterday's climb, it's probable that shares of USA Rare Earth are climbing in sympathy with the rise in shares of rare-earths peer MP Materials.

As of 11:13 a.m. ET, shares of USA Rare Earth are up 25.4%.

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Image source: Getty Images.

Investors are speculating good news is on the horizon

While USA Rare Earth didn't have anything to report today, one of its leading peers did. MP Materials announced a $500 million partnership with Apple that will see the companies collaborate on the production of recycled rare-earth magnets.

The reasons why investors are pouring into USA Rare Earth stock today upon news of the collaboration between MP Materials and Apple are probably two-fold. For one, investors who have had MP Materials on their radars but who haven't purchased its stock are likely feeling that they've missed the boat considering shares of MP Materials have soared since the start of 2025, so they're scratching their itch for rare-earth stock exposure with USA Rare Earth.

Second, investors are likely speculating that a similar sort of partnership to the one MP Materials and Apple just announced is on the horizon for USA Rare Earth, which itself is developing a rare-earth magnet production facility in Oklahoma.

Is investing in USA Rare Earth a smart move?

Although MP Materials has inked some notable agreements with the Department of Defense and Apple over the past week, USA Rare Earth hasn't had much to report. Until the company announces something material to the growth of its business, only investors with substantial tolerance for risk should consider positions at this point.

Should you invest $1,000 in Usa Rare Earth right now?

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It's been some ride for USA Rare Earth (NASDAQ: USAR) investors so far this year. From the time it began trading on March 14, when it completed its business merger with a special purpose acquisition company (SPAC), through the end of March, the stock had plunged 68%.

But USA Rare Earth stock turned things around in April, and shares skyrocketed 76.9%, according to data provided by S&P Global Market Intelligence.

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Rare earth elements took center stage last month as President Donald Trump signaled that his administration was intent on shoring up the nation's supply of the critical elements. This is a boon for USA Rare Earth, which is developing a rare earth magnet manufacturing facility in Oklahoma.

Image source: Getty Images.

Digging into President Trump's interest in rare earth elements

In mid-April, President Trump signed an executive order that started an investigation into whether the U.S. reliance on imports for rare earth elements and other critical elements could jeopardize the nation's security. Consequently, USA Rare Earth stock jumped to the forefront of investors' radars as the company is committed to producing rare earth elements from its asset in Texas. Furthermore, the company plans on commencing operations at a rare earth magnet manufacturing facility in the first half of 2026.

Rare earth elements emerged as a major point of focus last month as China, striking back against Trump's announced imposition of tariffs, suspended exports of seven rare earth elements.

A scenario where there's a constrained supply of rare earth elements is of great concern to a variety of industries. Made from alloys of rare earth elements, rare earth magnets are an essential component of manufactured products used in defense applications to electric cars to smartphones.

According to the U.S. Geological Survey, about 70% of the rare earth elements that the U.S. imports come from China.

Should investors power their portfolios with USA Rare Elements right now?

It's unsurprising that shares of USA Rare Earth jumped as much as they did last month, considering how rare earth elements emerged as a striking point of contention between the United States and China. If you're considering picking up shares, however, you should temper your expectations because it's not clear that the company will immediately benefit from recent developments.

Even though the stock has fallen about 15% since the start of May, as of this writing, investors should remain circumspect. The company is still in the pre-revenue phase of its development, so there's a fair degree of risk associated with an investment. As such, only those with a high tolerance for risk should consider initiating a position at this point.

Should you invest $1,000 in Usa Rare Earth right now?

Before you buy stock in Usa Rare Earth, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Usa Rare Earth wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $623,685!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $701,781!*

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Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.