Energy Fuels Inc. has begun construction on a major expansion of its White Mesa Mill in Utah, launching one of the most significant U.S. efforts to produce heavy rare earth elements needed for next-generation magnets and advanced technologies.

 

The project will add commercial-scale production of terbium and dysprosium oxides — two critical heavy rare earth materials used in high-performance permanent magnets that power electric vehicles, robotics, wind turbines, data centers and defense systems.

 

The expansion marks a key step in Energy Fuels’ strategy to build a fully integrated Western “mine-to-magnet” supply chain, reducing reliance on overseas sources for materials considered essential to modern industries.

 

"Heavy rare earth production is a severe pinch point in North American and European permanent magnet supply chains," said Ross Bhappu, President and Chief Executive Officer of Energy Fuels. 

 

"Given our ongoing success in piloting heavy rare earth oxides, we are now ready to advance to commercial-scale production. This is an exciting moment for Energy Fuels as we continue to build a fully integrated Western mine-to-magnet rare earth platform with proven commercial expertise at each step of the supply chain. 

 

"The production of both light and heavy rare earth oxides is a key differentiator of Energy Fuels' strategy to build an integrated rare earth supply chain that is expected to be completed upon the anticipated closing of our pending acquisitions of Australian Strategic Materials (ASM) and Vacuumschmelze (VAC)."

 

The Utah facility currently produces up to 1,000 tonnes per year of separated neodymium-praseodymium (NdPr) oxide. The planned expansion will add capacity for approximately 20 tonnes per year of terbium oxide, 120 tonnes of dysprosium oxide, 140 tonnes of samarium oxide, 20 tonnes of europium oxide and 140 tonnes of gadolinium oxide.

 

Terbium and dysprosium are especially important because they improve the heat resistance and durability of permanent magnets, allowing manufacturers to create smaller, lighter and more powerful electric motors.

 

Construction of the terbium and dysprosium production circuits is expected to be completed by the end of 2027, while additional circuits for samarium, europium and gadolinium are targeted for completion by the end of 2028.

 

Energy Fuels said the expansion is designed to process monazite concentrate expected from its Donald Project joint venture in Australia, which could begin production in 2028 following a final investment decision. 

 

The company expects the Utah facility, combined with additional third-party feed sources, to support a broader supply chain connecting rare earth processing, metal and alloy production, and magnet manufacturing.

 

The project will also include a mixed rare earth carbonate processing circuit, allowing the White Mesa Mill to handle additional global feedstocks while producing rare earth oxides and uranium at commercial scale.

 

The expansion carries an estimated capital cost of approximately $104 million. Energy Fuels said the project is expected to receive significant support through government grants and loans, including a previously announced conditional loan commitment from the U.S. government.

 

The company is also planning a second expansion of the White Mesa Mill in 2029 that would further increase production capacity and support a larger integrated supply chain capable of producing up to 15,700 tonnes of rare earth permanent magnets annually.

 

According to Energy Fuels, that level of production could provide enough magnets to support up to six million electric or hybrid vehicles per year, four million humanoid robots, 31 million internal combustion engine vehicles, 3,140 offshore wind turbines or 7.8 million smartphones.

 

The company’s Utah expansion comes as governments and manufacturers seek to secure alternative sources of rare earth materials, which are vital components in many high-growth technologies but are currently dominated by overseas supply chains.