13 Most Promising EV Stocks to Buy According to Hedge Funds

11. MP Materials Corp. (NYSE:MP)

Number of Hedge Fund Holders: 31

One of the most promising EV stocks, MP Materials Corp. (NYSE:MP) is the largest producer of rare earth materials in the Western Hemisphere. It owns and operates the only large-scale rare earth mining and processing site in North America, the Mountain Pass facility.

The company is also constructing a rare earth metal, alloy, and magnet manufacturing facility in Fort Worth, Texas, for producing neodymium-iron-boron magnets and precursor products. Neodymium-iron-boron magnets are found in the electric motors of EVs as they are primarily used in the production of strong permanent magnets.

In 2023, MP Materials (NYSE:MP) began selling separated rare earth products like neodymium-praseodymium oxide and entered into a long-term agreement with General Motors to supply U.S.-sourced rare earth materials for electric vehicle motors. The company also received a $50 million prepayment from GM as part of this agreement.

In April, the company received a $58.5 million award from the U.S. Internal Revenue Service and Treasury to support the construction of the first fully integrated rare earth magnet facility in the U.S., with GM set to be a key customer for these products in their EV production.

The company has also made strides in refining rare earths and produced 272 metric tons of neodymium and praseodymium in the second quarter and selling 136 metric tons. It anticipates a 50% production increase in the third quarter due to demand from a new automotive customer.