Energy Fuels (UUUU 10.34%) stock collapsed in early trading this morning, falling 15.3% through 10:40 a.m. ET after the U.S. Department of Energy (DOE) issued a rather innocuous request for information (an "RFI," a preparatory step in the government contracts process that precedes issuing a request for proposals).
This RFI invites states to express interest in hosting "Nuclear Lifecycle Innovation Campuses." These campuses could contain advanced nuclear reactors, and also conduct "nuclear fuel lifecycle" activities, including "fuel fabrication, enrichment, reprocessing used nuclear fuel, and disposition of waste."
The RFIs must be submitted by April 1, 2026.
The announcement made no mention of Energy Fuels.
Image source: Getty Images.
Context, please
One week ago, DOE shook up the energy market when it announced it would cancel or restructure more than $83 billion in Biden-era loans to various renewable and other energy projects -- while leaving nuclear projects mostly intact or even increasing their funding.
This still appears to be the policy, and it still sounds like something that could benefit Energy Fuels. Indeed, the new RFI suggests DOE plans to further nuclear development, and to pair its Nuclear Lifecycle Innovation Campuses with collocated advanced manufacturing and data centers that could utilize power generated by the reactors.
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Key Data Points
What does this mean for Energy Fuels stock?
Investors may be concerned by reports that the government is preparing for a second shutdown after federal funds run out at the end of this month, as legislators debate funding for the Department of Homeland Security. CNN notes, however, that budget bills passed earlier this year already secure funding for DOE in particular -- so that really shouldn't be a concern at this point.
For me, the biggest concern remains Energy Fuels' dwindling cash balance and continued cash burn rate of nearly $146 million over the last 12 months.
