Critical minerals are becoming increasingly important as the United States looks to reduce its dependence on foreign supply chains for materials used in defense, batteries, electronics and energy infrastructure.
Here are two critical mineral stocks to watch heading into 2027.
1. MP Materials (MP)
MP Materials (NYSE: MP) operates the Mountain Pass rare earth mine in California and is one of the most established U.S. critical mineral companies. We have rated MP a BUY because:
- MP is currently expanding into rare earth magnet manufacturing, creating a more vertically integrated supply chain.
- The company has secured significant U.S. government support as the country attempts to reduce its dependence on China for rare earth materials.
Rare earth magnets are essential for defense systems, electric motors, robotics and other advanced technologies, and MP Materials already has the infrastructure to produce them.
MP’s latest update in Q2 2026 is that they are currently going through “customer qualification and regulatory testing”. As such, the primary risk for investors is that MP may not be able to secure a large enough customer base, and that regulatory testing may hinder progress.
With these factors in mind, we think the potential reward outweighs the risks and that MP is a good choice for investors looking to get into the American rare earth mining industry.
2. Freeport-McMoRan Inc. (FCX)
Freeport-McMoRan Inc. (NYSE: FCX) is a copper mining and processing company that has mines in the United States, Peru, Chile, and Indonesia. We have rated FCX a STRONG BUY because:
- Freeport’s latest Q3 2026 operational update reports they have produced an estimated 830 million pounds of copper which is in line with expectations.
- Firms are forecasting high short-term copper prices mostly thanks to weaker mine supply and heightened demand.
The primary growth driver is the Grasberg mine in Indonesia (FCX owns 49% of PT Freeport Indonesia, which operates Grasberg), which is looking to ramp up capacity by year end 2027. The primary risk for Freeport remains the market price for copper, which remains incredibly volatile despite bullish forecasts.
Which Critical Mineral Stock Is the Best Buy?
Our favorite of these two stocks is FCX thanks to high copper price forecasts and the expansion of the Grasberg mine, which offers a large potential reward despite the elevated risk of volatile copper prices.
Are Critical Mineral Stocks a Good Investment for 2027?
Critical mineral stocks could stand to benefit as the U.S. continues to shift it’s mineral production internally in an attempt to secure its defense, energy and advanced manufacturing supply chains.
The US copper mining industry is expected to grow at a CAGR of 6% out to 2030, and the North American rare earth metals market is expected to grow at a CAGR of 5.8% to 2030.
