Key Points
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The Metals Company is attempting to build an undersea mining operation, which could be a big opportunity.
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MP Materials has a fully integrated rare-earth mining business that has already proven it works.
Rare-earth metals are a hot topic on Wall Street and geopolitically. China currently produces the vast majority of rare-earth metals, which are vital components in modern technology. The country has proven it will use access to the materials as a geopolitical bargaining chip. Which is why companies like TMC The Metals Company(NASDAQ: TMC) and MP Materials(NYSE: MP) are of keen interest to investors.
Before you buy into the big story about The Metals Company, however, consider this vitally important fact about rare-earth metals producer MP Materials.
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The Metals Company: A bold plan that is still years away from realization
Rare-earth metals go into everything from cellphones to missile defense systems. The latter products make these materials of importance to ensuring a country’s sovereignty. And it helps explain why the governments of the United States and Japan are helping to smooth the way for The Metals Company to develop its business. The problem is that the deep-sea mining operation the company hopes to create isn’t actually a thing just yet. It is more of an aspirational goal.
The Metals Company is moving toward that goal, but it is likely years away from actually operating a mine, let alone a profitable one. The story behind the stock is exciting, but it is still just a money-losing start-up with a bold idea and little else. In fact, it doesn’t even report income on its income statement; the quarterly report starts with expenses. Only the most aggressive of growth investors should even consider buying this stock.
MP Materials is up and running
Contrast that with MP Materials, which has an operating mine and processing assets. The company’s income statement starts with revenue, which has been increasing as operations ramp up. In the first quarter of 2026, revenue rose 49% year over year. In the second quarter, revenue increased 89% compared to the same quarter of 2025.
The bottom line, meanwhile, is positive on an adjusted basis through the first half of 2026. It would be better if GAAP earnings were positive, but MP Materials isn’t just a good idea anymore; it is a growing business that has proven it can turn a profit (at least an adjusted one). Notably, the company added a new aerospace and defense customer during the second quarter.
That said, MP Materials isn’t exactly a risk-free stock to own. It is still a very young business, while the rare-earth market is still developing. And it is still building out its capabilities. However, its focus on operating in a politically and financially stable region to provide customers with an alternative to China is clearly something the market desires. And being able to sell rare-earth metals right now gives it a leg up on The Metals Company, which basically hopes it can sell rare-earth metals at some point in the future.
Take calculated risks instead of making bets
For investors willing to invest in a developing industry, MP Materials is simply much further along the development curve than The Metals Company. In the end, that will make it a smarter option for most investors seeking out rare-earth exposure today.
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Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends MP Materials. The Motley Fool has a disclosure policy.
