Uncommon earths shares are gaining renewed investor consideration following current US authorities insurance policies that sharpen its concentrate on securing important mineral provide chains.
In early 2025, the Trump administration signaled stronger commitments to cut back American reliance on China for uncommon earth components (REEs) — particularly these important for protection, power and superior manufacturing.
This coverage momentum is driving capital into corporations positioned to assist US provide chain independence, notably these with modern and scalable uncommon earths options.
The US Division of Protection, Division of Power and the White Home have all expressed mounting concern over the vulnerability of American industries because of China’s overwhelming management of REEs — over 90 % of world uncommon earth magnet manufacturing. These magnets are important for protection programs, robotics, electrical autos (EVs) and synthetic intelligence applied sciences.
Amid these considerations, the Trump administration has been advancing govt actions designed to quick observe home manufacturing and processing capability. Throughout his first time period in workplace, Trump signed Government Order 13953, which addressed the specter of reliance on overseas adversaries for important minerals and instituted assist for home mining and processing industries.
Because the commerce struggle with China escalates, the US president doubled down on this agenda with a new govt order, issued in March 2025, invoking his wartime powers to strengthen the US important minerals provide chain.
This sequence of coverage strikes has boosted investor enthusiasm for uncommon earth equities. MP Supplies (NYSE:MP), the only US-based uncommon earths miner, has seen its inventory value climb roughly 70 % year-to-date, pushing its market capitalization to over US$4 billion, buoyed by its strategic position in home manufacturing and up to date coverage endorsements.
Equally, USA Uncommon Earth (NASDAQ:USAR), which went public in early 2025, noticed a 70 % surge on its Nasdaq debut and now holds a valuation close to US$887.5 million, reflecting sturdy investor confidence in its plans to ascertain a complete US uncommon earths provide chain.
These positive factors underscore the market’s optimistic response to governmental efforts aimed toward decreasing reliance on overseas sources, notably China, for important minerals important to protection and superior applied sciences.
Challenges in conventional provide chains
China’s dominance within the uncommon earths provide chain — from mining to processing to last manufacturing — presents a important vulnerability for the US, particularly in sectors like protection, robotics and synthetic intelligence.
NdFeB (neodymium-iron-boron) magnets, important for all the things from drones and EVs to missile steering programs and fighter jets, are largely sourced or processed in China. Whereas MP Supplies mines uncommon earths in California, most refining nonetheless occurs abroad, underscoring a scarcity of home downstream capability. Including to the problem, conventional uncommon earths mining is environmentally damaging and sluggish to allow within the US.
This pressing want for provide chain independence can also be driving curiosity in various approaches like recycling and home magnet manufacturing.
CoTec Holdings: Positioned for the following section of uncommon earths independence
Because the US intensifies efforts to safe important mineral provide chains, CoTec Holdings (TSXV:CTH,OTCQB:CTHCF), with a modest market capitalization of roughly US$33 million, is rising as a key participant in growing home uncommon earth magnet recycling capabilities. By means of a 50/50 three way partnership with Maginito, CoTec is advancing HyProMag USA, a undertaking aimed toward establishing a uncommon earth magnet recycling and manufacturing facility within the Dallas-Fort Price space of Texas.
HyProMag USA will leverage the patented Hydrogen Processing of Magnetic Scrap (HPMS) expertise, initially developed on the College of Birmingham. This modern course of allows the environment friendly restoration of NdFeB magnets from end-of-life merchandise and provides a low-cost, environmentally sustainable various to mining.
HyProMag’s “short-loop” course of offers a quicker and fewer complicated method in comparison with standard chemical-based strategies. By utilizing hydrogen fuel, magnets inside digital scrap are triggered to fracture naturally with minimal pre-processing. The demagnetized materials can then be sieved into powder kind, which is re-pressed and sintered into new magnets — all whereas bypassing most of the environmental challenges and delays related to mining and refining.
The Texas facility is projected to supply 750 metric tons of recycled sintered NdFeB magnets yearly by 2027, probably supplying as much as 10 % of US home demand inside 5 years by tripling the capability contemplated by the Feasibility Research launched in November 2024.
To place this in perspective, CoTec’s market capitalization of simply US$33 million is a fraction of its bigger friends — regardless of its superior growth stage and the strategic significance of its recycling mannequin. The undertaking’s optimistic November 2024 feasibility research highlights strong economics, with a web current worth of US$262 million at present costs and as much as US$503 million based mostly on projected pricing eventualities.
The undertaking has garnered assist from the Minerals Safety Partnership, a coalition of governments together with the US, aimed toward growing safe and sustainable important mineral provide chains. A optimistic feasibility research launched in November 2024 highlighted strong economics for the undertaking, estimating a web current worth of US$262 million at present costs, with potential to succeed in US$503 million based mostly on forecasted costs.
By specializing in recycling and home manufacturing, CoTec Holdings is strategically positioned to contribute to the US purpose of decreasing reliance on overseas sources for important supplies, notably in sectors very important to nationwide safety and technological development.
Weighing the dangers and rewards in uncommon earths investing
Authorities backing, mounting geopolitical urgency and speedy demand progress for purposes in protection, synthetic intelligence, EVs and clear power applied sciences all level to a robust long-term outlook for uncommon earths.
The US push to safe home uncommon earths provide chains is creating sturdy tailwinds for buyers, however the sector stays nuanced. Main gamers like MP Supplies have benefited considerably from early mover standing and authorities assist. Equally, USA Uncommon Earth, which went public in early 2025, debuted with a valuation of US$887.5 million regardless of nonetheless being in pre-production phases.
Against this, CoTec Holdings’ decrease market cap provides buyers a markedly totally different worth entry level. But, CoTec is progressing at a quicker tempo than many bigger friends, with a US-based uncommon earth magnet recycling facility already in superior growth.
This distinction reveals a major worth hole available in the market. Whereas bigger uncommon earth equities might provide liquidity and visibility, corporations like CoTec present publicity to near-term manufacturing, strategic alignment with US coverage targets and cutting-edge expertise at a a lot decrease valuation.
After all, buyers ought to weigh this potential in opposition to sector-wide dangers. Uncommon earths manufacturing and processing are technically complicated and capital intensive, typically dealing with lengthy growth timelines and regulatory hurdles. Value volatility is one other issue, as uncommon earths markets are comparatively illiquid and could be impacted by sudden adjustments in world provide — notably from China.
However for these looking for to take part within the reshaping of the US important minerals panorama, corporations that mix modern fashions with accelerated growth timelines might provide a beautiful mixture of upside potential and policy-driven assist.
Investor takeaway
Knowledgeable investing on this house requires balancing optimism about macro-level developments with a clear-eyed view of execution challenges. As US coverage continues to favor home uncommon earth growth, the proper gamers may see important upside — particularly these aligned with sustainable, scalable provide chain options.
In contrast to conventional miners, CoTec provides buyers publicity to a low-footprint, tech-enabled mannequin which may be higher aligned with future regulatory and environmental expectations. In an period of provide chain instability, corporations that may shortly deploy home capability with out the lengthy timelines of mine growth might have a definite benefit.
This INNspired article is sponsored by CoTec Holdings (TSXV:CTH,OTCQB:CTHCF). This INNspired article offers info which was sourced by the Investing Information Community (INN) and authorised by CoTec Holdingswith a purpose to assist buyers study extra in regards to the firm. CoTec Holdings is a consumer of INN. The corporate’s marketing campaign charges pay for INN to create and replace this INNspired article.
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The data contained right here is for info functions solely and isn’t to be construed as a proposal or solicitation for the sale or buy of securities. Readers ought to conduct their very own analysis for all info publicly out there in regards to the firm. Prior to creating any funding choice, it is suggested that readers seek the advice of straight with CoTec Holdings and search recommendation from a certified funding advisor.
