The Trump administration has announced the signing of a conditional $725 million loan commitment to expand the domestic rare earth processing operations of Energy Fuels (UUUU.US), as part of an effort to reduce reliance on foreign sources. On Thursday, shares of Energy Fuels surged more than 10% at the open. At the time of writing, the stock was up 11.37% to $17.04.

The Office of Strategic Capital (OSC) within the U.S. Department of Defense stated that Energy Fuels, which specializes in uranium production, will expand its business into the separation and metallization of rare earth elements. The OSC noted that, as part of the conditional loan agreement, the company must meet financial, legal, technical, and other due diligence requirements, though specific details were not provided.

The OSC indicated that the increase in the company's rare earth magnet production "will directly support permanent magnet facilities across the broader U.S. industrial base and improve supply chains for other specialized defense and industrial products." Earlier this week, the OSC announced a $500 million conditional loan commitment with Phoenix Tailings to expand that company's domestic processing of rare earth elements.