Highlights

• MP Materials leads U.S. rare earth production with strategic partnerships and a 340% YTD stock rise, despite current profitability challenges.
• The Metals Company pursues deep-sea polymetallic nodule mining, with a $2 billion valuation and uncertain regulatory environment.
• Investors face key risks including policy support, environmental challenges, and high market volatility in these emerging mining ventures.

---

TheMotley Fool contributor Steven Porrello profiled two mining companies he argues are among the “smartest stocks to buy with $100 right now” (The Motley Fool, Aug. 28, 2025). The picks—MP Materials (NYSE: MP) and The Metals Company (NASDAQ: TMC)—offer contrasting stories: one an established U.S. rare earths producer, the other a pre-revenue deep-sea explorer.

MP Materials: U.S. Rare Earth Champion or Overhyped?

Porrello underscores that MP Materials operates the only active rare earth mining and processing facility in the U.S. at Mountain Pass, California. MP has built partnerships with Apple ($500 million long-term supply agreement) and the U.S. Department of Defense ($400 million preferred stock deal with an NdPr floor price of $110/kg).

The Fool highlights MP’s soaring share price—up more than 340% YTD and 460% year over year. Yet, despite investor enthusiasm, MP reported an adjusted EPS loss of $0.13, reminding investors that profitability remains elusive as it transitions away from its former Chinese customer, Shenghe Resources. 

While Rare Earth Exchanges could declare MP Materials overvalued based on our assessment of the fundamentals, on the other hand, the national rare earth treasure trove will emerge as a hub of the reindustrialization of the American rare earth supply chain. For this reason, we expect even more growth as long as they execute their delivery plans.  But it’s all about complex delivery now, no small matter.

The Metals Company: High Hopes on the Seafloor

The second spotlight, The Metals Company (TMC), is pursuing polymetallic nodules on the Pacific Ocean floor, rich in nickel, cobalt, copper, and manganese. The pitch: nodules could serve as “battery packs in a rock.”

But challenges loom large. The International Seabed Authority (ISA) has yet to finalize rules for commercial mining. With about five to six quarters of cash runway, TMC may need further financing, raising the risk of dilution. Despite being pre-revenue, its valuation hovers at $2 billion.  Seems steep for such a deep challenge.

Questions for Investors

• Profit vs. hype: MP’s stock rise is dramatic—but does a loss-making operation with heavy government backing merit its current $13B valuation? Remember their position.
• Policy risk: Will Washington continue supporting multiple non-China REE ventures, or concentrate funding around MP?
• Environmental risk: TMC’s vision rests on deep-sea mining. How realistic is commercial-scale production given unresolved environmental, legal, and political pushback?
• Retail risk: Both companies may deliver long-term upside, but in the near term, MP is capital-intensive and TMC is speculative. How much volatility can retail investors stomach?

Source: Steven Porrello, The Motley Fool (opens in a new tab), Aug. 28, 2025

©!-- /wp:paragraph -->