Why Energy Fuels Stock Exploded Higher Today
Key Points
China is tightening controls over rare-earth exports.
The U.S. Department of Defense will build a $1 billion stockpile of critical minerals.
JPMorgan Chase will invest $10 billion in various critical industries.
- 10 stocks we like better than Energy Fuels ›
Energy Fuels (NYSEMKT: UUUU) stock, involved in mining both uranium and rare-earth metals, soared 18% through 10:35 a.m. ET Monday after China threatened to throttle rare-earth exports to the United States.
President Donald Trump reassured investors that China isn't serious, and everything "will all be fine." Not everyone seems 100% convinced, however, and shares of pretty much every stock having anything to do with rare-earth materials -- Energy Fuels included -- is rising on elevated risk to the supply chain.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Image source: Getty Images.
Bad news for US is good news for UUUU
London's Financial Times reports that the U.S. Defense Department will build a $1 billion stockpile of critical minerals to ensure supply chain continuity for defense systems.
Jamie Dimon, CEO of investment bank JPMorgan Chase (NYSE: JPM), is adding fuel to the fire. He commented that it is "painfully clear that the United States has allowed itself to become too reliant on unreliable sources of critical minerals, products and manufacturing -- all of which are essential for our national security," and the JPM CEO says his bank plans to invest $10 billion, in loans and direct investments, over the next decade, to support several critical sectors: defense and aerospace, artificial intelligence and quantum computing, energy technology, and supply chain and advanced manufacturing.
Is Energy Fuels stock a buy?
Dimon's prediction aligns well with news last week that Energy Fuels is raising $700 million in convertible debt. Even with $115 million in annual cash burn, Energy Fuels' move last week gives the company six extra years to grow its rare-earth and uranium businesses and reach profitability.
Valued at more than 200 times next year's earnings, Energy Fuels isn't a buy just yet, but the picture is at least getting clearer.
Should you invest $1,000 in Energy Fuels right now?
Before you buy stock in Energy Fuels, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Energy Fuels wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $657,979!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,122,746!*
Now, it’s worth noting Stock Advisor’s total average return is 1,060% — a market-crushing outperformance compared to 187% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of October 13, 2025
JPMorgan Chase is an advertising partner of Motley Fool Money. Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy.
Recommended Articles
