The importance of Rare Earth Elements (REEs) used in technologies from Smart phones and AVs to National Defense and Space Tech, cannot be overstated!

 

A small, retail investor looking to gain exposure to rare earth materials might consider MP Materials (MP) and Avalon Advanced Materials (AVL/AVLNF),

Here is how I am approaching the investment, with strategies tailored to risk profile, capital allocation, and market timing.

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🧾 Step-by-Step Investment Approach

1. Understand Their Profiles

Company	Ticker	Exchange	Stage	Region	Risk Level
MP Materials	MP	NYSE (USA)	Mature	USA	Low-to-Medium
Avalon Advanced Materials	AVL	TSX-V (Canada) / OTCQB (AVLNF)	Early-stage	Canada	High (speculative)

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2. Diversified Allocation Strategy (Example for $10,000 Portfolio)

Risk Appetite	MP Materials	Avalon (AVL)	Cash / Other
Conservative	$7,000 (70%)	$1,000 (10%)	$2,000 (20%)
Balanced	$5,000 (50%)	$3,000 (30%)	$2,000 (20%)
Aggressive	$3,500 (35%)	$5,000 (50%)	$1,500 (15%)

Why?

• MP Materials gives you stability, cash flows, and policy tailwinds.

• AVL offers asymmetric upside if Canada builds its rare earth value chain and AVL scales successfully.

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3. Entry Strategy

✅ MP Materials (MP):

• Buy in tranches on pullbacks or near $16–$18 (historical support levels).

• Consider:

  • Dollar-cost averaging (DCA) monthly.

  • DRIP (Dividend Reinvestment Plan) if/when dividends resume (none currently).

  • Long-term hold (5+ years), especially as magnet plant comes online in Texas (2025–2026).

✅ Avalon (AVL / AVLNF):

• Higher volatility—treat as venture capital–style bet.

• Entry near lows (e.g., <$0.20 CAD) may offer multi-bagger potential if milestones hit.

• Buy small initial position; increase only after:

  • Major partner/funding announcement.

  • Processing milestones with Saskatchewan Research Council.

  • Government contracts or grant programs.

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4. Monitor These Catalysts

MP Materials	Avalon / Nechalacho
U.S. DoD magnet plant progress	Financing or JV for full-scale processing
Q4/Q1 financials (growth + margins)	Offtake agreements for heavy REEs
EV/OEM contracts (GM, Tesla, etc.)	Indigenous partnerships & ESG momentum
REE price trends (Nd-Pr especially)	Federal critical mineral program funding (Canada)

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5. Alternative / Supplementary Exposure

If you want a broader REE basket, consider:

• ETFs (Note: very few pure-play REE ETFs exist):

  • 🟢 REMX – VanEck Rare Earth/Strategic Metals ETF

    • MP is a top holding. AVL may be included in future if it grows.

    • Includes Lynas (AUS), Iluka, China Northern Rare Earth, etc.

• Battery Metals ETFs – Broader exposure but with lithium/cobalt/nickel too.

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🔚 Final Thoughts

Recommendation	MP Materials	Avalon Advanced Materials
Buy if you want...	Stability + growth + U.S. policy exposure	High-risk, high-reward REE growth
Best time to enter	On dips below $20	Sub-$0.25 CAD on good volume
Exit horizon	Hold through 2030	Re-evaluate after 12–24 months

Conclusion:
🔒 Use MP Materials as your anchor investment in rare earths—de-risked, policy-supported, with upside from magnet integration.

MPs new Magnet plant in Texas

🔥 Use AVL as a speculative levered bet on Canada’s REE independence and heavy rare earth supply growth.