• The company is buying VAC from Ara Partners for $718 million in cash and 65.853 million newly issued Energy Fuels common shares.
• Securing rare earths is a key priority of the current Trump administration to make the U.S. a dominant player on the global stage and reduce dependency on China.
• Last week, Energy Fuels received a conditional $725 million financing commitment from the U.S. government to ramp up rare earths production.

Energy Fuels (UUUU) said Tuesday it would buy German magnet producer VAC in a cash-and-stock deal with an equity value of $1.9 billion as it executes on its strategy to bolster its rare earths-focused mining business. This acquisition comes days after the company received a significant loan from the U.S. government to support domestic production.

At the time of writing, UUUU stock was down about 2% in premarket trading amid a broader tech stocks-led market sell-off.

Why VAC Matters To UUUU’s Growth Strategy?

VAC has a global presence with magnet production facilities in North America, Europe and Asia. But the crown jewel of its portfolio is the state-of-the-art facility in Sumter, South Carolina, which has the capacity to produce 2,000 tonnes per annum (tpa) of permanent magnets, with the potential to scale up to 12,000 tpa.

"Together with VAC, we will strengthen global rare earth and magnet supply chains, providing a reliable, secure and diversified source of critical materials from mines to highly valued permanent magnets,” said Energy Fuels CEO Ross Bhappu.

U.S. Is Prioritizing Rare Earths

Securing rare earths is a key priority of the current Trump administration to make the U.S. a dominant player on the global stage and eliminate trade leverage that China and other mineral-rich nations could potentially have in the future.

The government is actively helping mining companies like Energy Fuels in order to increase the national stockpile of resources critical to industries that manufacture electric vehicles, consumer electronics, smartphones, and defense systems, among other things.

Last week, the company received a conditional $725 million financing commitment from the Department of War, U.S. Office of Strategic Capital, to ramp up rare earths production, with the loan to be repaid over two decades.

What Do Retail Traders Think About UUUU?

On Stocktwits, retail sentiment on UUUU turned ‘extremely bullish’ from ‘bullish’ over the last 24 hours, amid ‘high’ message volumes.

One bullish user on the platform cheered the deal, saying: “This transforms Energy Fuels into a true mine‑to‑magnet supplier — something the United States has desperately needed to reduce dependence on China. This isn’t hype. This is a real, strategic shift backed by government support and global demand.”

Another user expects the stock to hit $100 in the next 2-3 years.

UUUU stock has nearly tripled in value over the last 12 months, outperforming the S&P 500.

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