Shares of Energy Fuels (UUUU 17.75%) rallied on Friday, rising as much as 13.6% before falling back to a 3.3% gain at the end of the day. Still, the gain was notable as the broader markets were much weaker, with the S&P 500 index down 2.7% on the day.
Energy Fuels is a miner of both uranium and rare earths, but perhaps more importantly owns the White Mesa mill, which is the only U.S. facility capable of refining certain rare-earths minerals.
While Energy Fuels' primary mining operations are in uranium materials, it was its rare earths refining capabilities that likely caused its outperformance today, after rare earths took center stage in the U.S.-China trade war on Friday.
President Trump heightens threats on China over rare earths
Yesterday, the Chinese Ministry of Commerce placed new export restrictions on rare-earths materials. That could be a threat to the global economy, given that rare earths are required for a variety of industrial and military applications, and China controls about 70% of global rare-earths refined products.
In response, President Donald Trump took to his social media platform, Truth Social, to lambast China while threatening countermeasures. Of note, Trump threatened to raise the already-high tariffs on Chinese-imported goods, and even threatened to cancel his trip to meet with Chinese President Xi Jinping, which is scheduled to take place in South Korea.
Negotiating and bargaining with rare-earths supply may threaten the global economy, but it would likely be a boon for any U.S.-based miner or refiner of rare-earths materials, including Energy Fuels.
Image source: Getty Images.
Energy Fuels is a strategic U.S. asset
After its 300% rally in 2025, Energy Fuels obviously looks wildly overvalued based on current fundamentals. However, there is a premium that is at least partially deserved for its White Mesa mill and other mining assets in critical materials.
While the stock might not be a buy right now, investors worried about geopolitics should consider identifying and allocating parts of their diversified portfolio to companies with strategic assets, such as Energy Fuels, other miners, or U.S.-based semiconductor manufacturers.
Along with these strategic industries, gold has risen roughly 50% this year, due to fears over inflation and geopolitical strife. If you are worried about what trade tensions or actual geopolitical tensions may do to your portfolio, it may be a good idea to allocate a portion of your portfolio to strategic companies like Energy Fuels, gold, or other assets with similar qualities.
