Why Energy Fuels Stock Popped Today

The Pentagon is in rare earths

Rare earth metals miner MP Materials (MP 51. 21%) announced a "transformational public-private partnership with the Department of Defense to accelerate U

Rare earth magnet independence," sending its stock up 60% this morning

Now investors in other ducers of metals, critical to national defense, are hoping they may be next in line

ET today, as investors wonder whether the DoD might throw some money at uranium as well as at rare earths

Image source: Getty Images

Government MP's largest holder

Bully for MP, you say

But why would Energy Fuels investors be excited this

Well, because in April, Interior Secretary Doug Burgum opined that the Trump administration might make investments in "critical minerals" as part of a new sovereign wealth fund that aims to both secure access to minerals critical to national security, and earn fit for taxpayers from these minerals' development

DoD's investment in MP Materials appears to be the first evidence that this is actually going to happen

Energy Fuels might become the second

Is Energy Fuels stock a buy

I won't sugarcoat the fact that investors betting on this happening, though, are taking a bit of a gamble

Still, analysts do expect Energy Fuels to turn fitable next year

Even if the government doesn't buy Energy Fuels stock, you might want to

Rich Smith has no position in any of the stocks mentioned

The Motley Fool recommends MP Materials

The Motley Fool has a disclosure policy.