US signs $725 million loan pact with Energy Fuels to boos…

On June 18, 2026, the U.S. government signed a $725 million conditional loan agreement with Energy Fuels to enhance domestic processing of rare earth elements, aiming to lessen dependence on China. This partnership will enable Energy Fuels to expand its operations into rare earth separation and metallization, essential for producing permanent magnets used in various technologies, including electric vehicles and medical devices. Following the announcement, Energy Fuels' shares rose by 9.25%. The U.S. Department of War stated that increased production would bolster supply chains for defense and industrial products. The loan agreement requires Energy Fuels to meet financial, legal, and technical due diligence requirements.

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FILE PHOTO: Illustration shows blocks with symbols and atomic numbers of Rare Earth Elements

Blocks with symbols and atomic numbers of Rare Earth Elements (REE), in this illustration taken January 21, 2026. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights, opens new tab

June 18 (Reuters) - The U.S. government signed a $725 million conditional loan commitment on Thursday with Energy Fuels (UUUU.A), opens new tab to ‌boost domestic processing of rare earth elements, part of its efforts to reduce reliance on China.

Shares of Energy Fuels surged 9.25% in morning trading on Thursday in New York.

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Energy Fuels, which specializes in uranium production, will expand ⁠its operations into rare earth separation and metallization, which is crucial for the production of permanent magnets, the U.S. Department of War's Office of Strategic Capital said in a release.

The company's increased production of rare earth oxides "will directly support permanent magnet facilities across the broader U.S. industrial base, and improve supply chains for other specialty defense and industrial products," the ‌OSC ⁠said.

The U.S. Department of Defense has been renamed the Department of War by President Donald Trump.

Over the last year, several countries, including the U.S., have stepped up investments in rare earth mining and processing ⁠following China's move to curb exports of rare earth magnets.

Such magnets are used to make motors in electric vehicles, wind turbines, hard disk drives, ⁠and medical devices such as MRI machines.

Energy Fuels must fulfill financial, legal, technical and other due diligence requirements as ⁠part of the conditional loan agreement, the OSC said, without elaborating.

Reporting by Mike Stone in Washington and Nandan Mandayam in Bengaluru; Editing by Shinjini Ganguli and Jan Harvey

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Mike Stone

Thomson Reuters

Mike Stone is a Reuters reporter covering the U.S. arms trade and defense industry. Most recently Mike has been focused on the Golden Dome missile defense shield. Mike also spends a lot of his time writing on Ukraine and how industry has adapted, or faltered as it supports that conflict. Mike, a New Yorker, has extensively covered how the U.S. has supplied Ukraine with weapons, the cadence, decisions and milestones that have had battlefield impacts. Before his time in Washington Mike’s coverage focused on mergers and acquisitions for oil and gas companies, financial institutions, defense companies, consumer product makers, retailers, real estate giants, and telecommunications companies.

US signs $725 million loan pact with Energy Fuels to boost domestic rare earth production

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