Energy Fuels lands $725M Pentagon loan for rare earths

Arizona’s Department of Environmental Quality approved an amendment for the Pinyon Plain uranium mine near Grand Canyon, owned by Energy Fuels Resources Inc. The change raises the allowable arsenic limit in a groundwater monitoring well from 0.050 mg/L to 0.055 mg/L and increases the alert threshold from 0.040 mg/L to 0.050 mg/L. ADEQ said arsenic is naturally occurring and not added by the operator; the Havasupai Tribe opposed.

Energy Fuels (UUUU) shares rose 4.2% pre-open after SEC Form 4 filings showed CEO Ross Bhappu bought 74,000 shares at $13.08 (about $967,920) and chairman Bruce Hansen bought 4,000 shares at $12.695. The buys followed Energy Fuels’ late-June deal to acquire VAC for about $1.9B and a conditional up to $725M U.S. loan for rare earth expansion.

From June 2-26, 2026, the US committed about $2.9B in direct federal funding to expand rare earths and permanent magnet supply chains outside China, led by Commerce’s CHIPS Act. Companies added $1.4B. DOD and DOE also issued loans and ARPA-E research funding, while the Army opened bases for processing. USA Rare Earth, Energy Fuels, Phoenix Tailings, Empire State Mines, EnergyX, Ioneer, and REalloys were named.

Arizona’s Department of Environmental Quality approved on July 6 an amendment to the Pinyon Plain uranium mine’s aquifer protection permit, raising the permitted arsenic level in groundwater well MW-02 from 0.050 to 0.055 mg/L and the alert level from 0.040 to 0.050 mg/L. ADEQ said the higher arsenic is naturally occurring, while the Havasupai Tribe and U.S. Rep. Adelita Grijalva opposed, citing insufficient proof it isn’t mining-related. Energy Fuels said its investigation was thorough.

Energy Fuels (UUUU) is positioning itself as a U.S. critical-minerals supplier amid geopolitical efforts to reduce reliance on Russia and China, while nuclear power demand rises. The company operates Utah’s White Mesa Mill, processing uranium ore into yellowcake and handling radioactive byproducts from rare-earth ores. It plans Phase 1 upgrades starting July, fully operational in late 2027/early 2028, and received a conditional DoD OSC commitment for up to $725M long-term debt.

Energy Fuels will buy Germany’s Vacuumschmelze (VAC) in a $1.9 billion cash-and-stock deal to expand into rare-earth permanent magnets used in aerospace, defense and renewables. The company will pay $718 million cash plus 65.853 million shares, aiming to reduce reliance on China as G7 targets <60% supplier dependence by 2030. Deal expected to close early next year.