Energy Fuels (UUUU) stock skyrocketed 19.20% in pre-market trading on Monday, outperforming initial estimates and leading a broader surge in rare earth stocks. The dramatic rise comes as escalating tensions between the United States and China over critical mineral exports ignite investor interest in alternative suppliers.

The rally in rare earth stocks is primarily driven by China's recent announcement of expanded export controls on rare earths and related products, coupled with U.S. President Donald Trump's threats of retaliatory tariffs. These developments have intensified concerns about global supply chains and pushed investors towards non-Chinese rare earth companies. Energy Fuels, as a key player in the U.S. rare earth industry, stands to benefit significantly from these geopolitical shifts.

Adding fuel to the surge is a reported potential rare earths deal between Australia and the United States. According to The Age, Australia is considering a A$1.2 billion ($782 million) strategic minerals reserve as part of an agreement with the U.S. This move underscores Western efforts to reduce reliance on Chinese rare earth supplies and further benefits companies like Energy Fuels that operate outside of China. As geopolitical tensions continue to reshape the rare earths market, Energy Fuels' substantial pre-market gain reflects investor optimism about its potential role in securing alternative supply chains for these critical minerals.