Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) has commenced expansion of its White Mesa Mill in Utah to enable commercial-scale production of heavy rare earth oxides, a move that strengthens the company's strategy to create a fully integrated Western mine-to-magnet supply chain. The expansion, costing approximately $104 million, will add capacity to produce terbium, dysprosium, samarium, europium and gadolinium oxides by the end of 2028. This complements the mill's existing light rare earth oxide production and is expected to support the manufacturing of rare earth metals, alloys and magnets for the automotive, robotics, data center, energy and defense sectors.
The announcement is significant because it addresses a critical vulnerability in North American and European supply chains: the heavy reliance on China for rare earth elements, particularly heavy rare earths used in permanent magnets for electric vehicles, wind turbines, and advanced military systems. By establishing domestic production of these materials, Energy Fuels aims to reduce geopolitical risks and secure supply for key industries. The 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 stated that 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. This would support an integrated mine-to-magnet platform capable of producing enough permanent magnets annually for millions of electric vehicles, humanoid robots and other advanced technologies. The company is also developing three heavy mineral sands and rare earths projects: the Vara Mada Project in Madagascar, Bahia Project in Brazil, and the Donald Project in Australia through a joint venture with Astron Limited.
The White Mesa Mill is the only fully licensed conventional uranium mill operating in the U.S., and Energy Fuels has been the top U.S. producer of natural uranium concentrate. Beyond rare earths, the company is evaluating medical isotope recovery for emerging cancer therapies. The expansion aligns with broader U.S. government efforts to boost domestic critical mineral production, as outlined in the Inflation Reduction Act and Defense Production Act. For investors, the move signals Energy Fuels' transition from a uranium-focused miner to a diversified critical materials supplier, potentially unlocking new revenue streams and government contracts.
More information about Energy Fuels is available in the company's newsroom at http://ibn.fm/UUUU. The full press release can be viewed at https://ibn.fm/S04FF.
