Shares of Energy Fuels ( UUUU ) surged 14% on Wednesday, hitting levels not seen since 2010, after the Trump administration’s Energy Department announced a sweeping initiative to rebuild the U.S. nuclear fuel supply chain.

Energy Fuels leads the U.S. in uranium production and has been quietly building what could become one of the largest rare earth operations outside of China. The broader nuclear sector rose alongside energy fuels. Oklo ( OKLO ) rose 10.6%, Denison Mines ( DNN ) rose 9.3%, and NexGen Energy rose 9.1%. Cameco ( CCJ ), one of the world’s largest uranium producers, rose 6.1%.

While UUUU stock has given up some of those gains since Wednesday’s jump, it’s still up about 335% over the past 12 months.

The Energy Department said it wants states to host “nuclear life cycle innovation campuses” that deal with everything from uranium enrichment to nuclear waste storage and reprocessing.

For decades, the US nuclear industry has wrestled with a basic problem: what to do with radioactive waste.

• This new approach could finally solve this puzzle while creating a complete domestic nuclear fuel cycle.

• The campuses could also host advanced nuclear reactors and co-located data centers, directly benefiting companies like Energy Fuels that produce uranium domestically.

“Filling America’s next nuclear renaissance will drive innovation, drive economic growth and create high-paying American jobs,” Energy Secretary Chris Wright said in announcing the program.

The policy shift marks a major shift in how Washington approaches nuclear power. Instead of treating radioactive waste as an unsolved problem, the administration wants to reprocess spent fuel and establish regional centers for the entire nuclear life cycle.

While uranium grabbed the headlines, Energy Fuels dropped two massive feasibility studies this month that could reshape its entire business model.

The company’s Phase 2 rare earth expansion at its White Mesa mill in Utah demonstrates strong economics. With a capital cost of just $410 million, the project has an estimated net present value of $1.9 billion and an internal rate of return of 33%.

That’s before combining that with the company’s Vara Mada project in Madagascar, which adds another $1.8 billion in net present value. Together, these projects could generate $765 million in annual earnings before interest, taxes, depreciation and amortization over the first 15 years.

CEO Mark Chalmers didn’t mince words: “Energy Fuels is on the verge of solving America’s rare earth processing bottleneck.”

The numbers back it up. At full capacity, the company could supply 45% of total US rare earth requirements, including 100% of critical heavy rare earths such as dysprosium and terbium, by 2030.

Dysprosium and terbium are essential for high-performance magnets used in electric vehicles, wind turbines, advanced robotics and defense systems. China currently controls about 90% of global rare earth processing, raising serious national security concerns.

Energy Fuels mined more than 1.6 million pounds of uranium in 2025, beating the high end of guidance by 11%. The White Mesa Mill produced more than one million pounds of finished uranium concentrate, with more than 350,000 pounds produced in December alone. The company sold 360,000 pounds of uranium in the fourth quarter at a weighted average price of $74.93 per pound, generating revenue of approximately $27 million.

Most importantly, costs are coming down. As the low-cost ore from the Pinyon Plain mine in Arizona is processed, the company expects cost of goods sold to drop from about $50 to $55 per pound to $30 to $40 per pound. This should push gross margins above 50%.

Energy Fuels also closed two new long-term contracts with U.S. nuclear companies, adding deliveries from 2027 to 2032. The deals use hybrid pricing that gives the company an edge if uranium prices continue to rise while also providing downside protection.

Energy Fuels’ rare earth strategy focuses on monazite, a mineral concentrate that is a byproduct of heavy mineral sands mining.

This gives the company a significant advantage over traditional rare earth miners. Monazite has higher grades of critical elements, lower costs and easier processing if you have the right facilities.

• The White Mesa Mill is the only facility in the United States that can process monazite into light and heavy rare earth oxides. That’s a massive competitive moat.

• The Vara Mada project in Madagascar is expected to produce 24,000 tonnes of monazite annually when fully commissioned.

• This monazite is sent to Utah to be processed into separate high purity rare earth oxides.

Vara Mada’s total costs are estimated at just $29.39 per kilogram of neodymium-praseodymium oxide equivalent. This places Energy Fuels among the lowest-cost producers in the world, including Chinese competitors.

After completing a $700 million convertible debt offering in November, Energy Fuels has approximately $1 billion in working capital.

The convertible notes have an interest rate of only 0.75% with a conversion premium of 32.5%. It’s incredibly cheap money that gives the company flexibility to develop its projects without immediately diluting shareholders.

Roth Capital upgraded Energy Fuels on Wednesday to “Neutral” from “Sell” with a $15.50 target price, up from $13. The company believes near-term catalysts should tilt to the positive, with spot uranium prices pushing above $80 a pound.

Roth expects uranium to reach $100 a pound by mid-2026, with the potential for a significant rise beyond that level.

Energy Fuels provides exposure to two critical mineral markets where US policy strongly supports domestic production: uranium and rare earths. The company’s feasibility studies show world-class economics. Production increases. Costs are coming down. And it has the balance sheet to finance the development.

For investors who believe in America’s nuclear renaissance and critical minerals independence, Energy Fuels offers leveraged exposure to both. The company delivers on its promises, maintains industry-leading margins, and is building assets that competitors will struggle to replicate.

Of the six analysts covering UUUU stock, four recommend “Strong Buy” and two recommend “Hold”. The average price target on UUUU stock is $22.68, below the current price of about $24.

As of the date of publication, Aditya Raghunath had no positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. This article was originally published on Barchart.com