Energy Fuels Inc. (AMEX:UUUU) shares are trading higher Monday amid continued strength after China’s Commerce Ministry announced that foreign suppliers must obtain approval to export certain products containing rare earth materials.
What To Know: According to CNBC, China tightened export controls on rare earths and related technologies last week while barring its citizens from participating in unauthorized overseas mining. The Ministry of Commerce said that foreign entities must now obtain a license to export any products containing more than 0.1% domestically sourced rare earths or made using Chinese extraction, refining or magnet-making technology.
The new measures, which take effect Dec. 1, are designed to prevent the "misuse" of rare-earth minerals in military and sensitive sectors. Companies linked to foreign militaries or on export-control lists will be denied permits, while applications for items that could be used in weaponry or terrorism will also be rejected.
The restrictions, described as a "major upgrade for rare earth export control," expand China's oversight from raw materials to related intellectual property and technologies. Analysts noted the move could deepen global dependence on Chinese rare earth know-how and strengthen Beijing's leverage in trade negotiations ahead of an expected meeting between President Donald Trump and President Xi Jinping later this month.
Rare earth stocks are rising as investors expect China's new export rules to limit global supply. The restrictions could make it harder for other countries to access key materials used in technology and defense, boosting demand for U.S. producers like Energy Fuels. Traders see the policy as a tailwind for companies outside China that can help fill the supply gap.
Additionally, a social media post from Trump over the weekend appeared to ease trade concerns, with Trump stating, "Don't worry about China, it will all be fine!"
UUUU Price Action: At the time of writing, Energy Fuels shares are trading 18.76% higher at $24.11, according to data from Benzinga Pro.
This illustration was generated using artificial intelligence via Midjourney.
