What Rare Earths Stock Can Best Deliver Gains From America's Reshoring Boom?
Yahoo Finance ·
Every investment you make requires you to balance risk against reward. That can be a difficult process, and it is highly individual. Still, there are usually different ways to play the same investment idea. Rare-earth metals provide an interesting example. Here's why rare-earth metals are such an interesting investment opportunity. And why some investors will prefer MP Materials ( MP 1.86% ) over USA Rare Earth ( USAR 4.15% ) . And only a select few will favor TMC The Metals Company ( TMC 2.52% ) . Most rare-earth metals come from China . China has proven it is willing to use access to rare-earth metals as a geopolitical bargaining chip. On the surface, that is a problem, but this situation gets even more difficult to defend when you understand the importance of rare-earth metals. Rare-earth metals are used in everything from cellphones to automobiles. The last time China got stingy with rare-earth metals, a range of car companies warned that production could be compromised. Electric vehicles would likely be the hardest-hit segment of the auto market if rare-earth metal supplies were limited, given their electric motors, but the materials are used throughout the car-making process.
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