Rare Earth Elements: The Next Big Opportunity for Small Businesses in the Southeast

At Legacy Holdings, we are focused not on speculative mining itself, but on the supporting industries that enable, protect, and sustain this sector. These are the "pick-and-shovel" businesses that will be critical as the U.S. builds its rare earth independence. In this post, our goal is to highlight five key sectors that represent essential, often under-the-radar businesses poised to ride the tailwinds of this rare earth resurgence.

How did we get here? 

The United States is entering a new era of resource development. As artificial intelligence, electric vehicles (EVs), and renewable energy demand surge, the need for critical raw materials, particularly rare earth elements (REEs), has never been greater. Historically dominated by China, rare earth mining is now becoming a national priority.

In response to rising geopolitical tension and supply chain fragility, the U.S. is fast-tracking efforts to secure a domestic REE supply chain. One of the most promising regions for this effort? The Southeastern U.S., particularly Virginia and North Carolina, where the geology closely resembles China's ion-adsorption clay deposits. These clays allow for more cost-effective extraction methods and lower environmental impact compared to traditional hard-rock mining.

But make no mistake—while the rare earth space is full of promise, it is also incredibly complex. From exploration and environmental regulation to processing, transportation, and sustainability, it requires a coordinated ecosystem of specialized businesses.

The five sectors we are keeping an eye on: 

1. Construction: Roads, Site Prep & Staging Areas

Before a single ounce of REE is extracted, entire operations must be built—often in remote or undeveloped areas. That means access roads, site grading, equipment staging, drainage infrastructure, and more. Small and mid-sized construction firms that specialize in industrial and mining-adjacent site work are in high demand. These companies are often the first boots on the ground and have repeat value across multiple sites.

2. Industrial HVAC & Ventilation

Mining environments—especially those dealing with dust, underground operations, or enclosed processing centers—depend heavily on specialized HVAC systems to protect both workers and equipment.

In places like Denver, where mining intersects with high altitude and climate extremes, HVAC companies do more than temperature control. They engineer full ventilation systems to ensure safe oxygen levels, regulate humidity for equipment rooms, and deploy air filtration systems to meet environmental standards.

These aren’t optional services; they are mission-critical. Providers who offer ventilation design, climate control for control rooms, dust filtration, and 24/7 emergency service become embedded partners in long-term operations. These businesses are technical, high-trust, and generate recurring revenue.

3. Battery Recycling & Materials Reuse

As demand for batteries skyrockets, so does the need to recycle them. Rare earths are not only mined—they can be recovered from old electronics, EVs, and industrial equipment. Urban mining and materials reuse businesses are rising fast, offering solutions that are both economically and environmentally sustainable.

Companies that specialize in lithium, cobalt, and rare earth recovery will be essential to closing the loop on America’s critical materials strategy.

4. Dust Filtration & Air Quality Services

Mining produces airborne dust that threatens human health and machinery lifespan. Businesses that install and maintain industrial-scale dust suppression and air purification systems will be a vital part of every REE operation. These services aren’t just about compliance—they improve uptime, extend equipment life, and reduce regulatory risk.

HVAC and environmental services often intersect here, with firms providing integrated air quality solutions that cover both indoor systems and outdoor dust management.

5. Water Management & Treatment

Extracting rare earths, even from ion-adsorption clays, still requires water usage and runoff containment. Companies that provide site-specific filtration, wastewater treatment, and stormwater management will play a growing role as environmental standards tighten. The ability to deploy scalable, efficient, and sustainable water systems will be a differentiator.

From mobile treatment units to long-term infrastructure, this sector will grow alongside the mining footprint.

Final Thoughts

The rare earth industry is evolving quickly, driven by the rising demands of the energy transition, AI, and advanced manufacturing. But the opportunity isn’t just in the mining itself—it’s in the highly specialized, often underappreciated service businesses that make mining possible.

At Legacy Holdings, we’re not here to speculate on where the next major deposit will be. We’re here to back the businesses that build the roads, ventilate the mines, clean the air, treat the water, and recycle the metals.

In short: we invest in the infrastructure behind the infrastructure. And in the race for rare earth independence, that’s where enduring value will be created.