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Can UUUU and Vulcan Elements Strengthen U.S. Rare Earth Magnet Supply?
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Key Takeaways
Energy Fuels signed an MOU with Vulcan to supply rare earth oxides for magnet production.
Starting Q4 2025, Energy Fuels will deliver NdPr and Dy oxides for Vulcans validation.
White Mesa Mill produced 99.9% pure Dy oxide, surpassing commercial benchmarks in the US.
Energy Fuels Inc. (UUUU - Free Report) inked a Memorandum of Understanding (MOU) with Vulcan Elements, aiming to establish a domestic supply chain for rare earth magnets that is independent of China.
Vulcan manufactures high-performance rare earth magnets for defense and commercial applications. It operates a commercial manufacturing facility in Durham, NC. Energy Fuels will supply initial quantities of high-purity "light" and "heavy" separated rare earth oxides to Vulcan, starting in the fourth quarter of 2025. Vulcan will then validate Energy Fuels' neodymium-praseodymium (NdPr) and dysprosium (Dy) oxides for the production of rare earth magnets. Once validated, Vulcan and Energy Fuels will negotiate further long-term supply agreements.
In 2024, Energy Fuels produced high-purity NdPr oxide at a commercial scale at its White Mesa Mill. This "light" rare earth oxide has already been approved by magnet makers and is set to be used in EVs and hybrid vehicles across the United States, Europe and Asia this year.
Energy Fuels recently reached a significant milestone by producing the first kilogram of Dy oxide at pilot scale from its White Mesa Mill in Utah. The company exceeded expectations by attaining 99.9% purity, above the 99.5% commercial benchmarks. Per UUUU, the quantity and purity of its Dy oxide production is unmatched in the United States at this time, underscoring its competence in building a rare earth oxide supply chain independent of China.
Energy Fuels plans to continue pilot-scale production until it produces approximately 15 kilograms of Dy oxide. Once this is achieved, the company intends to produce high-purity terbium (Tb) oxide and is targeting the fourth quarter to deliver the first samples of Tb oxide.
Energy Fuels' White Mesa Mill in Utah is the only operating facility in the United States that can process monazite mineral concentrates into separated rare earth oxides. The company currently sources these concentrates from The Chemours Company (CC - Free Report) . Chemours mines and separates heavy mineral sands from its mines in Florida and Georgia.
As Energy Fuels is currently developing new heavy mineral sands projects in Madagascar, Brazil and Australia, it entered into a strategic alliance with Chemours in March 2025, expanding their existing four-year association to enhance U.S. domestic rare earth and critical mineral supply chains.
Recently, another major player in rare earths, MP Materials (MP - Free Report) entered into a public-private partnership with the United States Department of Defense (DoD) to fast track the development of a domestic rare earth magnet supply chain.
Backed by the multibillion-dollar investment package and long-term commitments from DoD, MP Materials will construct the second domestic magnet manufacturing facility (the 10X Facility). This will take MP Material’s total U.S. rare earth magnet manufacturing capacity to 10,000 metric tons and cater to both the defense and commercial sectors.
UUUU’s Price Performance, Valuation & Estimates
Energy Fuels shares have gained 140% so far this year compared with the industry’s 6.6% growth.
Image Source: Zacks Investment Research
UUUU is trading at a forward 12-month price/sales multiple of 29.11X, at a significant premium to the industry’s 2.84X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Energy Fuels’ 2025 loss is pegged at 33 cents per share. The bottom-line estimate for 2026 is pegged at earnings of one cent per share. Here is how the EPS estimates for 2025 and 2026 have been revised over the past 60 days.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #3 (Hold).
Image: Bigstock
Can UUUU and Vulcan Elements Strengthen U.S. Rare Earth Magnet Supply?
Key Takeaways
Energy Fuels Inc. (UUUU - Free Report) inked a Memorandum of Understanding (MOU) with Vulcan Elements, aiming to establish a domestic supply chain for rare earth magnets that is independent of China.
Vulcan manufactures high-performance rare earth magnets for defense and commercial applications. It operates a commercial manufacturing facility in Durham, NC. Energy Fuels will supply initial quantities of high-purity "light" and "heavy" separated rare earth oxides to Vulcan, starting in the fourth quarter of 2025. Vulcan will then validate Energy Fuels' neodymium-praseodymium (NdPr) and dysprosium (Dy) oxides for the production of rare earth magnets. Once validated, Vulcan and Energy Fuels will negotiate further long-term supply agreements.
In 2024, Energy Fuels produced high-purity NdPr oxide at a commercial scale at its White Mesa Mill. This "light" rare earth oxide has already been approved by magnet makers and is set to be used in EVs and hybrid vehicles across the United States, Europe and Asia this year.
Energy Fuels recently reached a significant milestone by producing the first kilogram of Dy oxide at pilot scale from its White Mesa Mill in Utah. The company exceeded expectations by attaining 99.9% purity, above the 99.5% commercial benchmarks. Per UUUU, the quantity and purity of its Dy oxide production is unmatched in the United States at this time, underscoring its competence in building a rare earth oxide supply chain independent of China.
Energy Fuels plans to continue pilot-scale production until it produces approximately 15 kilograms of Dy oxide. Once this is achieved, the company intends to produce high-purity terbium (Tb) oxide and is targeting the fourth quarter to deliver the first samples of Tb oxide.
Energy Fuels' White Mesa Mill in Utah is the only operating facility in the United States that can process monazite mineral concentrates into separated rare earth oxides. The company currently sources these concentrates from The Chemours Company (CC - Free Report) . Chemours mines and separates heavy mineral sands from its mines in Florida and Georgia.
As Energy Fuels is currently developing new heavy mineral sands projects in Madagascar, Brazil and Australia, it entered into a strategic alliance with Chemours in March 2025, expanding their existing four-year association to enhance U.S. domestic rare earth and critical mineral supply chains.
Recently, another major player in rare earths, MP Materials (MP - Free Report) entered into a public-private partnership with the United States Department of Defense (DoD) to fast track the development of a domestic rare earth magnet supply chain.
Backed by the multibillion-dollar investment package and long-term commitments from DoD, MP Materials will construct the second domestic magnet manufacturing facility (the 10X Facility). This will take MP Material’s total U.S. rare earth magnet manufacturing capacity to 10,000 metric tons and cater to both the defense and commercial sectors.
UUUU’s Price Performance, Valuation & Estimates
Energy Fuels shares have gained 140% so far this year compared with the industry’s 6.6% growth.
Image Source: Zacks Investment Research
UUUU is trading at a forward 12-month price/sales multiple of 29.11X, at a significant premium to the industry’s 2.84X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Energy Fuels’ 2025 loss is pegged at 33 cents per share. The bottom-line estimate for 2026 is pegged at earnings of one cent per share. Here is how the EPS estimates for 2025 and 2026 have been revised over the past 60 days.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.