Energy Fuels Inc. (NYSE: UUUU) is a mining development company that explores and evaluates uranium and vanadium sources. While alternative investors might overlook a company that engages in uranium exploration, there’s potential in vanadium, especially for stored energy.
Vanadium is a rare chemical element. One of its primary uses is in redox flow batteries. These batteries are used for grid-scale energy storage. Durability is rated up to 30 years with a charge/discharge efficiency of up to 80%. Cycle durability ranges from 12,000 cycles on the low end, up to 20,000 cycles on the high end. Vanadium batteries are far more durable than lithium ion types, which will likely never reach the performance required for widespread grid-scale storage needs.
The clean energy industry relies on battery storage to remain feasible. It is expected that the market for vanadium batteries could exceed $1 billion within the next five years. In turn, companies like Energy Fuels Inc. could see revenues soar.
Four out of five top analysts recorded by FactSet recommend BUY ratings on Energy Fuels stock. The average target price of $4.53 hints at a significant upside. Energy Fuels could take years to provide a meaningful return, but it also has the potential to be a sleeper alternative energy stock. Its pricing makes it attractive for investors who are willing to take some risk in the bargain market.
- 1 Year Price Growth: -52.71%
- YTD Price Growth: -44.91%
- 3 Month Price Growth: -43.53%
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