Under the collaboration, Energy Fuels will supply initial quantities of high-purity “light” and “heavy” separated rare earth oxides to Vulcan in the fourth quarter of 2025.
Energy Fuels Inc. (UUUU) and Vulcan Elements on Tuesday signed a memorandum of understanding to strengthen the supply chain of rare earth magnets in the U.S. Energy Fuels stock traded over 17% higher at the time of writing.
The partnership’s announcement comes a day after President Donald Trump threatened to slap China with 200% tariffs if it did not resume the supply of magnets to the U.S.
Under the collaboration, Energy Fuels will supply initial quantities of high-purity “light” and “heavy” separated rare earth oxides to Vulcan in the fourth quarter (Q4) of 2025.
Energy Fuels’ shares soared 17% in Tuesday morning’s trading, and retail sentiment about the stock was in the ‘extremely bullish’ territory on Stocktwits.
Rare earth magnets are critical for several high-tech industries, including robotics, semiconductor fabrication, drone and defense systems, electric vehicles, consumer electronics, and more.
The announcement stated that Energy Fuels will provide Vulcan with neodymium-praseodymium (NdPr) and dysprosium (Dy) oxides for the production of rare earth magnet applications. These oxides will be sourced exclusively from U.S. mines, the company said.
This comes at a time when President Trump has ramped up the pressure on China to provide U.S. companies with the rare earth magnets they need to manufacture their products. “They have to give us magnets. If they don’t give us magnets, we have to charge them 200% tariffs or something,” Trump said on Monday.
The U.S. president also said the United States could ramp up its domestic production capacity of rare earth magnets in a “pretty short” period of time. “In fact, we’ll have so many we won’t know what to do with them,” he added.
UUUU stock is up 6% year-to-date and 26% over the past 12 months.
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