Energy Fuels Stock Gains as U.S. Uranium Sector Receives Backing and Rare Earth Production Advances

Energy Fuels Inc. Shares Advance on Policy Tailwinds and Production Milestones

Energy Fuels Inc. (NYSEAmerican:UUUU) shares closed significantly higher on Monday, September 16, 2025, surging by 15.84% to settle at $13.82 apiece. During intraday trading, the stock reached a new all-time high of $14.12. This notable advance reflects investor optimism driven by concurrent positive developments in both the uranium and rare earth element sectors, critical to U.S. energy security and industrial supply chains.

U.S. Government Backing Bolsters Domestic Uranium

The broader uranium sector experienced heightened investor interest following strong declarations of support from the U.S. government for expanding domestic production capabilities. Energy Secretary Chris Wright, in an interview, articulated the nation's aspiration for "rapid growth in uranium consumption in the U.S. from both large reactors and small modular reactors," underscoring the imperative for substantial domestic uranium and enrichment capacity. This sentiment aligns with a broader governmental push to reduce reliance on foreign, particularly Russian, uranium supplies.

Legislative actions, such as the Prohibiting Russian Uranium Imports Act signed in May 2024, mandate U.S. utilities to phase out Russian uranium by 2028, creating an urgent need for alternative supply chains. The U.S. Department of Energy (DOE) has allocated significant resources, including $2.7 billion under President Biden's Investing in America agenda, for a request for proposals (RFP) to procure low-enriched uranium (LEU) from domestic sources. Additionally, $3.4 billion has been allocated to the High-Assay Low-Enriched Uranium (HALEU) Availability Program to bolster domestic enrichment capacity for advanced reactor designs. These initiatives are designed to stimulate U.S. uranium enrichment, diversify the market, and ensure a reliable domestic supply of commercial nuclear fuel.

Rare Earth Breakthrough Establishes "Mine-to-Magnet" Supply Chain

Beyond its uranium operations, Energy Fuels announced a significant breakthrough in its rare earth endeavors. The company successfully produced commercial-scale Rare Earth Permanent Magnets (REPMs) from its high-purity neodymium-praseodymium (NdPr) oxide, which is processed at its White Mesa Mill in Utah. This achievement was realized in collaboration with a leading South Korean manufacturer, POSCO International Corporation, following a previously announced Memorandum of Understanding.

This development is a pivotal step towards establishing a "mine-to-magnet" supply chain that is independent of China, utilizing rare earth oxides sourced within the United States. An initial batch of 1.2 metric tons of NdPr oxide from Energy Fuels was processed into approximately 3.0 metric tons of REPMs, sufficient to power roughly 1,500 electric and hybrid electric vehicles. The White Mesa Mill holds a unique position as the only facility in North America licensed and capable of producing high-purity rare earth oxides from monazite.

Market Reaction Reflects Strategic Independence Imperatives

Investors reacted positively to the confluence of these events, recognizing Energy Fuels' strategic positioning within critical U.S. supply chains. The U.S. government's concerted effort to onshore nuclear fuel and critical mineral production is driven by national security and energy independence objectives. This macro trend provides a strong foundational tailwind for companies like Energy Fuels, which possess key domestic assets and technological capabilities.

Energy Secretary Chris Wright highlighted the broader strategic goals, stating:

"The country's ambition is for rapid growth in uranium consumption in the U.S. from both large reactors and small modular reactors, emphasizing the need for substantial domestic uranium and enrichment capacity."

The company's dual-revenue model, encompassing both uranium and rare earth elements, further mitigates commodity-specific risks and capitalizes on converging national priorities for energy security and critical mineral independence. This alignment positions Energy Fuels to benefit from sustained government support and increasing industrial demand.

Broader Context and Future Implications

The current U.S. push for domestic uranium production is set against a backdrop of comparatively modest inventories, with U.S. utilities maintaining approximately 14 months of uranium supply, significantly lower than the European Union's 30 months and China's decade-plus reserves. This strategic vulnerability, coupled with geopolitical tensions, underscores the long-term importance of the announced initiatives. Other uranium-focused companies, such as Cameco Corp. (NYSE:CCJ) and Uranium Energy Corp. (NYSE:UEC), also experienced share price increases following the news, reflecting broader sector optimism. Centrus Energy Corp. (NYSE:LEU) in Ohio has also commenced production of HALEU, highlighting the diversified efforts to secure the nuclear fuel cycle.

Energy Fuels maintains a strong financial position, reporting $253 million in working capital, $71 million in cash, and $126 million in marketable securities as of June 2025, with no debt. This liquidity supports its ambitious plans to reduce uranium production costs, targeting $23-$30 per pound through the processing of high-grade ores from its Pinyon Plain mine by early 2026. This cost reduction initiative, combined with stable uranium pricing, is expected to significantly enhance gross margins, which were previously impacted by lower sales.

Looking ahead, Energy Fuels and POSCO International Corporation are expected to enter negotiations for a long-term supply agreement for NdPr oxide, signaling sustained demand for the company's rare earth products. Furthermore, Energy Fuels plans to expand into heavy rare earth oxide production, including dysprosium, terbium, and samarium, by 2026-2027 at its White Mesa Mill, further solidifying its role in developing a comprehensive, non-China supply chain for critical minerals. The overarching goal is to achieve complete fuel cycle independence, support projected nuclear fleet expansion, and establish U.S. leadership in advanced fuel technologies, creating significant opportunities for domestic producers like Energy Fuels.