How Far Can Energy Fuels (UUUU) Ride the Rare Earth Wave?

Surging Into the Spotlight

Energy Fuels (NYSE:UUUU) is a leading U.S.-based critical minerals company that is beginning to make waves in the rare earth elements (REE) sector. 

Operating the White Mesa Mill in Utah — the only fully licensed conventional uranium processing facility in the U.S. — Energy Fuels has expanded into producing high-purity REE oxides, such as neodymium-praseodymium (NdPr) and dysprosium (Dy), critical for electric vehicles, defense systems, and renewable energy technologies. 

The company also processes heavy mineral sands and is exploring medical isotopes. Over the past five days, UUUU’s stock has soared 52%, with an 18% spike in morning trading today. This meteoric rise has drawn investor attention, fueled by significant catalysts that signal Energy Fuels’ potential to reshape the U.S. REE supply chain. 

But what’s driving this surge, and is it sustainable enough to warrant making  UUUU a must-have addition to your portfolio?

Breaking New Ground

A key driver of UUUU’s recent stock surge is its announcement last week that it successfully produced its first kilogram of 99.9% pure dysprosium oxide at the White Mesa Mill, surpassing the 99.5% commercial standard. 

Dysprosium, a heavy rare earth element, is vital for high-performance magnets used in electric vehicles and defense applications. This achievement marks Energy Fuels as the first U.S. company to produce high-purity dysprosium oxide at a commercial facility, positioning it as a potential alternative to China’s 85% dominance in heavy REE production. 

The company plans to produce 15 kilograms of dysprosium oxide by September and aims to scale up to commercial production of dysprosium, terbium, and other heavy REEs by next year’s fourth quarter. This milestone has sparked investor optimism, as it demonstrates technical prowess and strengthens Energy Fuels’ role in diversifying the U.S. critical minerals supply chain.

A New Strategic Partnership

Today’s news further fueled the rally: Energy Fuels signed a Memorandum of Understanding (MOU) with Vulcan Elements to supply high-purity NdPr and dysprosium oxides starting in the fourth quarter. Sourced from U.S. mines in Georgia and Florida, these oxides will support Vulcan’s production of rare earth magnets for electric vehicles, defense systems, and advanced technologies. 

The White Mesa Mill — the only U.S. facility capable of processing monazite into separated REE oxides — is central to this partnership. While the MOU is not a binding contract, it signals Energy Fuels’ intent to build a domestic REE supply chain independent of China. Investors see this as a step toward long-term supply agreements, boosting confidence in UUUU’s growth potential.

Push for a Government Lifeline?

The Trump administration’s focus on domestic REE production has heightened expectations for Energy Fuels. With a Section 232 investigation into critical mineral imports underway, the market anticipates UUUU could secure government support akin to the $439 million partnership with MP Materials (NYSE:MP) in exchange for a 15% stake in the company.. 

Such a deal could provide funding for scaling operations or securing feedstock from projects like the Donald Project in Australia, which could yield 7,000 to 8,000 tonnes of REE concentrate annually by 2026. Investors are betting on Energy Fuels’ strategic position, especially as U.S. policies aim to counter China’s control over REEs. 

However, no formal government partnership has been announced, and speculation about a major deal may be driving some of the stock’s momentum.

Key Takeaways

Energy Fuels presents a compelling but risky investment case. Its dysprosium oxide production and Vulcan MOU elevate its profile, but challenges remain. The pilot-scale dysprosium output is a proof-of-concept, not a guarantee of commercial scalability. The Vulcan MOU, while promising, lacks contractual certainty. 

Last week, UUUU stock plunged 17% in a single day on no news, highlighting UUUU’s volatility. The subsequent 52% surge resembles a momentum play more than a sustainable trend. Investors may be tempted by the REE sector’s growth and potential, but UUUU’s early-stage production and reliance on future contracts suggest caution. 

A small speculative stake may be warranted to have some skin in the game, but waiting for proof of scalability and binding agreements is prudent before making a more significant commitment.

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