Energy Fuels' stock surged 6.67% in pre-market trading on Monday, as the rare earth sector rallied following news of a major U.S. government investment in domestic critical minerals production.

The Trump administration is taking a 10% stake in USA Rare Earth as part of a $1.6 billion debt-and-equity investment package aimed at helping the company develop a domestic mine and magnet facility, according to Reuters. This move is part of a broader push by Washington to increase domestic output of rare earths, which are essential for electronics and military equipment, and reduce reliance on China.

The investment news has sparked optimism across the rare earth sector, with multiple companies seeing significant pre-market gains as traders anticipate increased government support for domestic critical minerals development.