Rare earth stocks and copper plays are flashing buy signals or close to it amid multiple catalysts. MP Materials and USA Rare Earth are both near buy points, as is S&P 500 copper giant Freeport-McMoRan.

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The copper price has rallied near an all-time high as markets brace for potential Trump tariffs news, with demand already outpacing supply. Rare earths have recovered lost ground, and then some after White House assurances following the summit between President that China would ease rare earth exports has yet to produce results.

nRare Earthsn

The White House announced in a May 17 fact sheet that China had made a commitment to "address U.S. concerns regarding supply chain shortages related to rare earths and other critical minerals, including yttrium, scandium, neodymium and indium." The Trump administration also said China would address concerns about prohibitions or restrictions on sale of rare earth processing equipment and related technologies.

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Reuters reported in February that aerospace and semiconductor firms faced shortages of yttrium and scandium, two of seven heavy rare earth minerals that China restricted the export of in April 2025.

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The export controls imposed by China target seven minerals that are critical for military hardware, from RTX Tomahawks, to the Lockheed Martin F-35 fighter jet, Predator drones and nuclear-powered submarines. In addition to yttrium and scandium, those rare earths include samarium, gadolinium, dysprosium, terbium and lutetium.

nnThe IBD Methodologynn

Three days after the White House claim of progress, China's Ministry of Commerce said only that it would work to resolve "legitimate and lawful concerns." Beijing defended the legality of its export controls on rare earths and other critical minerals and said it reviews license applications "for compliant civilian uses." The upshot is that any possible easing of export controls over heavy rare earths or other critical minerals would only be for nonmilitary applications.

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Meanwhile, China has increasingly clamped down on exports of rare earths to Japan following Prime Minister Sanae Takaichi's comment last November that an attack on Taiwan would warrant a Japanese military response. Chinese shipments of rare earth magnets to Japan fell 27% from a year ago in March.

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Restrictions on rare earth exports for military applications come as the U.S. and Europe are ramping up defense spending and placing increasing emphasis on drone warfare, a key source of incremental rare earth demand.

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Tight supply for rare earth metals in the West is reflected by non-China spot rare earth prices for critical materials such as dysprosium and terbium that are more than 400% above prices within China that are held down by state subsidies, William Blair analyst Neal Dingmann wrote in a May 20 note.

nCopper Pricen

The copper price surged 1.95% to $6.68 a pound Tuesday, according to CME Group data. That's a hair below the record high of $6.71 a pound.

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The rally may be partly tied to hopes for a U.S.-Iran deal that reopens the Strait of Hormuz and avoids global recession. Supply shortages are a contributor, with the outlook for supply constrained by mining challenges encountered by Freeport-McMoRan and others.

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However, markets also are positioning in case the Trump administration recommends to impose tariffs on imports of unrefined copper. Last June, in making the case for tariffs on imports of semifinished and finished copper imports, the Commerce Department opted to hold off on tariffs for unrefined copper, recommending that a 25% tariff apply starting in 2027 to copper input materials.

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By June 30, the Commerce Department is set to provide new guidance to the White House as to whether a tariff on unrefined copper is needed, as well as whether the recommended 15% tariff on refined copper should take effect in January 2027.

nMP, USAR, FCXn

MP Materials rose 3.9% to 71.98. Tuesday's rally builds on Monday's 7.1% advance. The move past last week's 69.46 high, while breaking clear of the 21-day exponential average, could provide an early entry opportunity for aggressive investors.

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USA Rare Earth popped 4.9% to 30.87. USAR is becoming a bit extended after clearing a 28.69 buy point on Monday.

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FCX jumped 5.9% to 71.01, powering past a 68.86 buy point from a cup-with-handle base, according to a MarketSurge weekly chart.

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Century Aluminum surged 8.2% to 69.16, clearing a 68.69 consolidation buy point.

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Be sure to read IBD's The Big Picture column after each trading day to get the latest on the prevailing stock market trend and what it means for your trading decisions.

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