Energy Fuels Advances Heavy Rare Earth Production Timeline with Commercial Scale Operations Targeted for Q4 2026

• Energy Fuels has started small-scale test production of valuable heavy rare earth materials at its Utah facility, with plans to reach full commercial production by late 2026. 
• The company is currently the only U.S. producer making these critical materials from mined ore, giving it a unique competitive advantage in the domestic market. 
• Energy Fuels expects to produce its first kilogram of dysprosium within 30 days, followed by production of other high-value rare earth materials through 2025 and 2026. 
• The company's Australian Donald Project contains exceptionally rich deposits of heavy rare earth materials that could begin production by late 2027, potentially meeting significant portions of U.S. demand. 
• Energy Fuels' diversified global portfolio includes additional projects in Madagascar and Brazil, positioning the company to supply critical materials to U.S. and European manufacturers.

Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) has initiated small-scale test production of valuable heavy rare earth materials at its White Mesa Mill facility, marking a significant milestone in the company's strategic expansion beyond uranium production. The Denver-based company, which positions itself as a leading U.S. producer of uranium, rare earth materials, and other critical minerals, announced on July 17, 2025, that it has commenced producing heavy rare earth materials at test scale and could achieve full commercial production as early as late 2026. This development represents the only heavy rare earth material production occurring from mined ore at a commercial facility in the United States at this time, positioning Energy Fuels as a potentially critical supplier in the domestic rare earth supply chain.

Current Production Status & Near-Term Milestones

Energy Fuels has begun producing dysprosium, a valuable heavy rare earth material, at its White Mesa Mill in Utah, achieving a minimum purity of 99.5% with potential to exceed 99.9% purity. The company expects to complete production of its first kilogram of dysprosium within the next 30 days, representing a tangible milestone in its heavy rare earth production capabilities.

The production timeline extends through the remainder of 2025 with specific targets for each rare earth material. Energy Fuels plans to continue producing dysprosium on a test scale until the end of September 2025, expecting to produce approximately 15 kg during this period. The waste materials generated from this production will feed the company's terbium production line, which is scheduled to commence operations at the beginning of October 2025. By the end of November 2025, the company expects to have produced one kg of terbium on a test scale.

The production sequence continues into 2026 with samarium production planned to begin on a test scale at the Mill in January 2026, assuming current progress continues as planned.

Commercial Scale Production Timeline

The transition from test production to full commercial production represents a critical phase for Energy Fuels' rare earth strategy. Assuming the test production continues to be successful, the company could be positioned to produce dysprosium, terbium, and samarium on a commercial scale at its existing rare earth processing facility at the Mill, requiring only minor modifications.

The commercial production timeline presents two distinct phases. From existing raw materials, Energy Fuels could achieve commercial scale production as early as late 2026. For production from its permitted Donald Project in Australia, commercial operations could commence as early as late 2027, contingent upon a production decision being made in 2025.

President and CEO Mark Chalmers emphasized the company's unique market position, stating: 

"Energy Fuels is in a unique position to produce the heavy rare earth oxides needed by other U.S. producers to make rare earth metals, alloys and magnets. The Company has demonstrated its ability to separate NdPr on a commercial scale through the commissioning of its Phase 1 REE separations circuit at the Mill in April 2024."

Strategic Differentiation in the Market

Energy Fuels distinguishes itself from competitors through its approach to heavy rare earth element production. Unlike other companies experimenting with HREE production via recycling, Energy Fuels represents the only U.S. company producing separated HREE oxides from commercial rare earth ores. This approach provides several strategic advantages, including the ability to apply rare earth separation techniques to a wide range of feedstocks, including rare earth concentrates and recycled materials.

The company's operational capabilities extend beyond pilot production. Chalmers noted: 

"Piloting of our HREE production is going very well, with our first kg of Dy oxides expected shortly. With minor modifications to the Mill's existing Phase 1 separations circuit, the Company could be in commercial production of Dy, Tb and Sm as early as Q4 2026."

Donald Project: A World-Class Heavy Rare Earth Resource

The Donald Project joint venture in Victoria, Australia, represents a cornerstone of Energy Fuels' long-term heavy rare earth strategy. This world-class permitted heavy mineral sand and REE development project contains the rare earth-bearing minerals monazite and xenotime, with Energy Fuels holding the right to offtake all monazite and xenotime from the project.

The geological composition of the Donald Project provides significant advantages for heavy rare earth production. While monazite contains both light and heavy rare earth elements, xenotime contains higher concentrations of heavy rare earth elements (HREE) including Tb, Dy, and Sm. These elements are particularly valuable in the rare earth magnet industry, where Tb and Dy are required to allow magnets to operate at higher temperatures.

The Donald Project's resource characteristics demonstrate its world-class status. The project qualifies as a world-class source of HREEs due to its high relative concentrations of xenotime. The monazite plus xenotime rare earth element concentrate (REEC) that will be produced at the Donald Project contains approximately 3.02% Sm, 0.37% Tb, and 2.15% Dy on a 100% total rare earth oxides (TREO) basis.

These concentrations compare favorably to alternative sources. Typical bastnaestite ores contain approximately 0.79% Sm, 0.02% Tb, and 0.03% Dy, while other monazite properties typically contain approximately 1.80% Sm, 0.10% Tb, and 0.20% Dy. This compositional advantage positions the Donald Project as a superior source of heavy rare earth elements.

Production Capacity & Market Impact

The Donald Project could significantly strengthen America's rare earth supply independence. In its first phase, the project would produce 7,100 tonnes of rare earth concentrate annually, containing large quantities of the most valuable heavy rare earth materials. Each year for over 40 years, this would yield 129 tonnes of samarium, 16 tonnes of terbium, and 92 tonnes of dysprosium.

These production numbers are substantial compared to current U.S. demand. The Donald Project alone could supply more than double the current U.S. need for samarium, nearly a quarter of terbium requirements, and over one-third of dysprosium demand. Production at Energy Fuels' Utah facility could begin as early as late 2027, assuming the company makes a development decision in 2025.

The project offers significant expansion potential for future growth. A second phase could nearly double production to approximately 13,000 tonnes of rare earth concentrate annually, with corresponding increases in heavy rare earth material output.

Global Project Portfolio & Future Development

Energy Fuels' strategic positioning extends beyond the Donald Project through its diversified global portfolio of rare earth development projects. The company maintains additional projects that could contribute to its long-term production capacity and market presence.

The Toliara Project in Madagascar represents another significant development opportunity. This world-class heavy mineral sands and rare earth development project is currently targeted to come online as early as 2028, subject to receipt of Madagascar government approvals and acceptable stability arrangements.

Chalmers outlined the company's broader strategic vision: 

"And, of course, we also have the Toliara Project in Madagascar, which is a world-class heavy mineral sands and rare earth development project, currently targeted to come on line as early as 2028, subject to receipt of Madagascar government approvals and acceptable stability arrangements, and our Bahia Project in Brazil, which is a heavy mineral sands and REE exploration and permitting project targeted to come on line in 2029."

The Bahia Project in Brazil adds further geographic diversification to Energy Fuels' portfolio. This heavy mineral sands and REE exploration and permitting project is targeted to come online in 2029, expanding the company's potential production base across multiple continents.

Both the Toliara and Bahia projects contain significant quantities of light and heavy REE oxides, which can be supplied to U.S. and European manufacturers, providing additional market opportunities and supply chain diversification.

Market Positioning & Strategic Advantages

Energy Fuels' heavy rare earth production capabilities position the company to address critical supply chain needs in the U.S. manufacturing sector. The company's HREE production would represent the only commercial scale heavy rare earth element production in the United States from an economically viable feedstock.

This unique market position provides Energy Fuels with the opportunity to supply U.S.-based manufacturers with the heavy rare earth oxides required to make rare earth metals, alloys, and permanent magnets. The domestic production capability addresses national security concerns related to critical mineral supply chains while providing commercial opportunities in growing markets.

Chalmers emphasized the strategic importance of this capability:

"The Company's permitted Donald Project, in Australia, is one of the richest deposits of HREEs in the world, which we could bring into production by the end of 2027, thereby providing much-needed U.S.-produced heavy rare earth oxides to other U.S. rare earth producers."

For Investors

For investors evaluating Energy Fuels, the company's progression from pilot-scale to commercial-scale heavy rare earth production represents a significant strategic development. The near-term production milestones provide concrete timelines for assessing operational progress, while the Donald Project offers substantial long-term production potential with favorable resource characteristics.

The company's unique position as the only U.S. producer of separated HREE oxides from commercial rare earth ores provides competitive advantages in a market with increasing focus on domestic supply chain security. The diversified global project portfolio offers multiple pathways for future growth and production expansion.

However, investors should consider the execution risks associated with scaling from pilot to commercial production, the capital requirements for project development, and the regulatory and political risks associated with international projects. The timeline dependencies, particularly the requirement for a 2025 production decision for the Donald Project, represent key milestones that will influence the company's development trajectory.

The combination of near-term production capabilities, world-class resource assets, and strategic market positioning establishes Energy Fuels as a significant player in the North American rare earth supply chain, with potential for substantial value creation as the company executes its commercial production timeline.