Energy Fuels Inc. (UUUU) is set to continue its upward trajectory, soaring 7.66% in pre-market trading on Tuesday. This surge follows a significant 12.79% gain on Monday, as the rare earth sector experiences a broad rally in response to China's tightened export controls on critical minerals.

The stock's momentum is primarily driven by China's recent announcement of expanded export controls on rare earth materials, which are essential components in various high-tech and military applications. The Chinese Commerce Ministry's decision to require foreign entities to obtain licenses for exporting items containing more than 0.1% of Chinese-sourced rare earths has intensified global supply chain concerns. This geopolitical development has prompted investors to seek out non-Chinese suppliers, benefiting companies like Energy Fuels.

Adding to the positive sentiment, reports of a potential rare earths deal between Australia and the United States, which could include a A$1.2 billion strategic minerals reserve, have further boosted investor confidence in Western rare earth suppliers. As geopolitical tensions reshape the rare earths market, Energy Fuels' stock surge reflects growing optimism about its potential role in securing alternative supply chains for these critical minerals. The broader rare earth sector is also experiencing significant gains, with several companies posting double-digit increases in recent trading sessions, underscoring the heightened interest in this strategic industry.