Rebounding from an inauspicious first half of the week, shares of Energy Fuels (UUUU 12.55%) are soaring today. While investors would be right to suspect that the stock's climb has something to do with its nuclear energy business, it turns out that a development regarding the company's rare-earth operations is actually driving shares higher.
As of 12:04 p.m. ET, shares of Energy Fuels are up 8.3%, retreating from their earlier climb of 11.6%.
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News out of the Beehive State is generating a lot of buzz today
Energy Fuels reported yesterday the it has achieved production of its first kilogram of dysprosium oxide -- a heavy rare-earth element -- at its White Mesa Mill in Utah. The company asserted in the related press release its belief that it's the first U.S. company to both produce high-purity dysprosium oxide and publicly disclose actual production volumes and purities.
The company is also exploring production of terbium oxide as it expands production of dysprosium oxide. Should the company continue to achieve favorable results, it plans on developing these elements at commercial scale as well as working on separation of other heavy rare-earth elements at the Utah facility, starting production as soon as fourth quarter 2026.
The domestic production of rare-earth elements is a priority of the Trump administration. The Department of Defense, for example, entered into a major public-private partnership with MP Materials earlier this summer.
Should investors power their portfolios with Energy Fuels now?
With news of the successful production of rare-earth elements, the bullish argument for Energy Fuels is becoming a lot more convincing. It's imperative for prospective investors to recognize, however, that the company is still unprofitable and that development of the rare-earth elements separation facility is a significant capital expenditure, so there is a considerable amount of risk here.
