Energy Fuels Dominates Uranium and Rare Earth Markets with Record Growth
Energy Fuels, the largest uranium producer in the U.S., is expanding its rare earth operations with a major project in Utah. The company's stock has surged by 335% over the past year, reflecting strong growth in both uranium and rare earth markets. New contracts and cost-cutting measures are set to boost its position further.
In 2025, Energy Fuels mined over 1.6 million pounds of uranium, exceeding its own targets by 11%. The company also sold 360,000 pounds in the final quarter at an average price of $74.93 per pound. Two new long-term supply deals with U.S. nuclear power firms will run from 2027 to 2032, securing future revenue.
The Phase 2 rare-earth expansion in Utah carries a net present value of $1.9 billion and a 33% internal rate of return. Once fully operational, the project could meet 45% of U.S. rare earth demand by 2030, including 100% of critical heavy rare earths like dysprosium and terbium. Pairing this with the Vara Mada project in Madagascar may generate $765 million in annual earnings before interest, taxes, depreciation, and amortisation for the first 15 years.
Cost efficiency is improving as the company processes low-cost ore from the Pinyon Plain mine. This shift is expected to reduce production costs from $50–$55 per pound to $30–$40 per pound. A $700 million convertible debt offering in November strengthened the balance sheet, leaving around $1 billion in working capital.
Energy Fuels is expanding its role in both uranium and rare earth markets. The company's financial strength, new contracts, and cost reductions position it as a key supplier outside China. Future projects, including potential involvement in U.S. government-backed nuclear innovation campuses, could further solidify its industry standing.
