Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) has begun expanding its White Mesa Mill in Utah to enable commercial-scale production of heavy rare earth oxides, advancing its strategy to build a fully integrated Western mine-to-magnet supply chain. The project will add capacity to produce terbium, dysprosium, samarium, europium and gadolinium oxides by the end of 2028, complementing the mill’s existing light rare earth oxide production. The company said the expansion is expected to support production of rare earth metals, alloys and magnets for the automotive, robotics, data center, energy and defense sectors while strengthening North American and European supply chains.
The approximately $104 million expansion is expected to be funded through a combination of government support and company capital, with commercial production tied to anticipated monazite feedstock from the Donald Project in Australia and other sources. Energy Fuels said the expanded facility is expected to supply a significant portion of the rare earth oxides needed by its pending acquisitions of Australian Strategic Materials Ltd. (ASX: ASM) and Vacuumschmelze GmbH, supporting an integrated mine-to-magnet platform capable of producing enough permanent magnets annually for millions of electric vehicles, humanoid robots and other advanced technologies.
This development is significant because it addresses a critical vulnerability in Western supply chains: the current near-total dependence on China for heavy rare earth elements, which are essential for high-strength permanent magnets used in electric vehicles, wind turbines, and advanced defense systems. By establishing domestic processing capabilities, Energy Fuels aims to reduce reliance on foreign supply and secure a stable source of these strategic materials. The expansion also positions the company to capitalize on growing demand from the clean energy transition and technological innovation, with magnets being a key component in motors and generators.
The White Mesa Mill is the only fully licensed conventional uranium mill operating in the United States, and its expansion into rare earth processing leverages existing infrastructure and expertise. Energy Fuels is also developing three heavy mineral sands/rare earths projects: the Vara Mada Project in Madagascar, Bahia Project in Brazil, and Donald Project in Australia (through a joint venture with Astron Limited). These projects are expected to provide feedstock for the mill, creating a vertically integrated supply chain from mining to magnet production.
The announcement underscores the growing urgency for Western nations to build independent rare earth processing capacity. The U.S. Department of Defense and other government agencies have been providing support for such initiatives, recognizing their importance for national security and economic competitiveness. Energy Fuels’ expansion plan aligns with these efforts and could serve as a template for future investments in critical mineral processing.
For more details, refer to the full press release at https://ibn.fm/S04FF. Additional information about Energy Fuels is available at http://ibn.fm/UUUU.
