Energy Fuels Inc. announced that construction has begun on an expansion of its White Mesa Mill in Utah to enable large-scale production of heavy rare earth oxides. The project, estimated at $104 million, will add processing circuits for terbium, dysprosium, samarium, europium, and gadolinium, with the first phases expected to be completed by the end of 2027.
What it means
Ross Bhappu stated that heavy rare earth production is a severe pinch point in North American and European permanent magnet supply chains. The new circuits will process monazite concentrate from the company’s Donald Project joint venture in Australia, which is expected to produce approximately 8,500 to 9,500 tonnes of monazite annually beginning in 2028. A final investment decision for the Donald Project is anticipated in the third quarter of 2026.
The produced oxides are intended to supply roughly 70% of the feedstock for Australian Strategic Materials’ existing and planned metal and alloy capacity in South Korea. That output is expected to supply over 100% of the 2,000-tonne magnet capacity at Vacuumschmelze’s facility in Sumter, South Carolina. Energy Fuels has pending acquisitions of both ASM and VAC as part of its integrated mine-to-magnet program. The expansion also includes a circuit for processing mixed rare earth carbonates, enabling simultaneous production of rare earth oxides and uranium at commercial scale.
Terbium and dysprosium oxide capacity commissioning is expected in the fourth quarter of 2027, while samarium, europium, and gadolinium circuits are targeted for completion by the end of 2028. The company plans a further expansion in 2029 to process monazite from projects in Australia, Madagascar, and Brazil. Energy Fuels stated that its integrated supply chain is capable of producing 15,700 tonnes of rare earth permanent magnets per year in coming years.
Key facts
- Total capital expenditure: approximately $104 million
- Location: White Mesa Mill, Utah
- New capacity: Terbium and dysprosium oxides by end of 2027; samarium, europium, and gadolinium oxides by end of 2028
- Feedstock source: Donald Project monazite concentrate (Australia), expected to begin production in 2028
- Downstream integration: Oxides to supply ASM metal/alloy capacity in South Korea; VAC magnet facility in Sumter, S.C.
- Funding: Supported by working capital ($0.96 billion as of March 31, 2026), government grants, and a conditional U.S. government loan commitment
- Future expansion: Planned for 2029 to include feedstock from Madagascar and Brazil
Source: Energy Fuels Inc. news release (PR Newswire)