Energy Fuels Inc. (UUUU) continued its upward trajectory with a 7.66% pre-market soar on Tuesday, following a 12.79% gain on Monday. The surge comes as rare earth stocks experience a significant rally, driven by China's tightened export controls on rare earth materials and growing geopolitical tensions between the United States and China.

The recent rally in rare earth stocks has been particularly strong, with several companies in the sector posting double-digit gains. Critical Metals led the pack with a 33% increase, while Energy Fuels' 7.66% pre-market gain follows its 11% rise in overnight trading. This sustained momentum reflects investors' growing interest in non-Chinese rare earth suppliers as concerns over global supply chains intensify.

China's announcement of expanded export controls on rare earths, requiring foreign entities to obtain licenses for exporting items containing more than 0.1% of Chinese-sourced rare earths, has been a key driver of this trend. Additionally, 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 companies like Energy Fuels. As Western nations seek to reduce their reliance on Chinese rare earth supplies, Energy Fuels' stock performance suggests that investors view it as a potential beneficiary of this shifting geopolitical landscape.