Energy Fuels (UUUU) stock jumped sharply on Thursday after the company announced a conditional commitment of up to $725 million in senior-secured debt from the U.S. Department of Defense’s Office of Strategic Capital. The stock was up more than 16% at $17.85 at time of publication — its biggest single-day move in over four months.
The loan carries a 20-year repayment term and is subject to due diligence, finalisation of agreements, and other standard closing conditions.
Energy Fuels will use the funds for two main purposes. The first is expanding critical minerals processing at its White Mesa Mill in White Mesa, Utah. The second is building a new rare earth metals and alloys facility somewhere in the United States, with the exact location yet to be confirmed.
The company will also use a portion of the capital to support domestic and international projects already in its pipeline.
CEO Ross Bhappu welcomed the government backing. “The United States government has been steadfast in its support of critical materials security, and we appreciate the OSC’s financial support at this important time as we develop our vertically integrated supply chain,” he said.
The financing news comes ahead of Energy Fuels’ planned acquisition of Australian Strategic Materials Limited. That deal would bring rare earth metal and alloy-making expertise along with processing facilities located in South Korea.
The combination would give Energy Fuels capabilities across multiple steps in the critical materials supply chain — from mining through to finished metal production.
Rare earth materials are used in electric vehicles, consumer electronics, smartphones, and defense systems. Securing a domestic supply has become a stated priority for the Trump administration.
The administration wants to reduce the trade leverage that China and other mineral-rich countries could hold over the U.S. in the future. Energy Fuels, as the largest uranium producer in the country and a miner of heavy mineral sands and vanadium, fits directly into that strategy.
The government has been actively backing mining companies to build up stockpiles of these materials. It has also pressured countries including Greenland and Ukraine to provide access to their untapped rare earth deposits in exchange for military and diplomatic support.
Bhappu noted the broader context. “Recent events have underscored the urgency of building durable, transparent and allied supply chains for critical materials,” he said. “Energy Fuels is strategically positioned to lead that objective.”
At the time of publication, UUUU was trading 16.67% higher at $17.85.
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