Energy Fuels (UUUU) Surges 16.86% on China's Rare Earth Curbs U.S. Onshoring Push Drive Rally

Energy Fuels (UUUU) surged 16.86% on Monday, extending its winning streak to six consecutive days with a cumulative gain of 43.89% in the past week. The stock hit an intraday high of $26.30, marking its highest level since October 2025, driven by renewed investor interest in critical minerals amid geopolitical tensions and policy tailwinds.

The rally follows China’s recent export curbs on rare earths and critical materials, which heightened demand for U.S.-based alternatives. Energy Fuels, a key player in uranium and rare earth supply chains, benefits from its ability to produce 10 of the 50 critical minerals essential for modern technologies. The company’s operations at the Pinyon Plain uranium mine and White Mesa Mill position it to capitalize on U.S. efforts to reduce reliance on Chinese processing, particularly for rare earth magnets used in electric vehicles and defense systems.

Operational momentum has also fueled optimism. In October 2025, Energy Fuels raised $700 million via convertible debt, signaling strong investor confidence. The capital will accelerate rare earth separation projects, expand uranium production, and advance heavy mineral sands initiatives in Australia. Recent technical milestones, including the production of 99.9% pure dysprosium oxide and EV-grade neodymium-praseodymium oxide, underscore the company’s progress toward establishing a domestic “mine-to-magnet” supply chain.

Market dynamics further amplified the stock’s ascent. High short interest (13.54% of float) created a potential short squeeze as UUUU climbed past $20. Analysts note the inverse correlation between price and short interest (-36.75%) suggests further gains could force bears to cover positions, reinforcing upward momentum. Meanwhile, the Trump administration’s focus on onshoring uranium production and replacing Russian imports aligns with Energy Fuels’ strategic assets, including the only conventional uranium mill in the U.S.

Despite its net losses and limited near-term revenue from rare earths, Energy Fuels has attracted bullish sentiment due to its alignment with U.S. energy security goals. The company’s uranium operations support the DOE’s $1 billion strategic reserve plan, while rare earth projects align with growing demand for clean energy technologies. However, skeptics caution that the stock’s valuation, trading at a 15.7x EV/Sales multiple, remains heavily based on future expectations rather than current earnings.