Energy Fuels Begins Heavy Rare Earth Plant Construction in Utah, Targeting $104 Million Expansion

• nergy Fuels has started construction of a $104 million heavy rare-earth oxide expansion at the White Mesa Mill in Utah, targeting commercial production of terbium and dysprosium oxides by the fourth quarter of 2027.
• The expansion will add annual production capacity of 20 tonnes of terbium oxide, 120 tonnes of dysprosium oxide, 140 tonnes of samarium oxide, 20 tonnes of europium oxide, and 140 tonnes of gadolinium oxide.
• The project includes a mixed rare-earth carbonate (MREC) circuit, enabling the White Mesa Mill to process additional heavy rare-earth feedstocks while simultaneously producing rare-earth oxides and uranium oxide concentrate.
• The $104 million capex is expected to be funded through a combination of a conditional US government loan commitment and the company's approximately $0.96 billion working capital as of March 31, 2026, with additional grant funding also being pursued.
• Energy Fuels is planning a Phase 2 expansion in 2029, following a targeted Donald Project Final Investment Decision (FID) in the third quarter of 2026, to significantly increase the capacity for separating neodymium-praseodymium, terbium, and dysprosium oxides.

Company Overview

Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) is a US-based critical materials company focused on uranium, rare earth elements, heavy mineral sands, vanadium and medical isotopes. The Company owns and operates conventional and in situ recovery uranium projects in the western United States and, per its most recently filed Annual Report on Form 10-K, has been the leading US producer of natural uranium concentrate for several years. Energy Fuels also owns the White Mesa Mill in Utah, the only fully licensed and operating conventional uranium processing facility in the United States, where it produces advanced rare earth element products and vanadium oxide when market conditions warrant. The company is developing 3 heavy mineral sands projects: the 100%-owned Vara Mada Project in Madagascar, the 100%-owned Bahia Project in Brazil, and the Donald Project in Australia, in which it has the right to earn up to a 49% interest in a joint venture (JV) with Astron Limited.

Heavy Rare Earth Plant Construction Commences

Energy Fuels Inc. has commenced construction of an expansion of its White Mesa Mill in Utah to enable large-scale production of heavy rare earth element oxides. The expansion adds terbium and dysprosium oxide production capacity to the Mill's existing light rare earth oxide production capability, targeting commissioning of the terbium and dysprosium circuits by the fourth quarter of 2027 and the samarium, europium and gadolinium circuits by the end of 2028.

The planned expansion is designed to add capacity of up to approximately 20 tonnes per annum of terbium oxide, 120 tonnes per annum of dysprosium oxide, 140 tonnes per annum of samarium oxide, 20 tonnes per annum of europium oxide, and 140 tonnes per annum of gadolinium oxide. The expansion also includes a mixed rare earth carbonate (MREC) circuit that will enable the Mill to process additional feedstock types rich in heavy rare earth elements and to produce rare earth oxides and uranium oxide concentrate simultaneously at commercial scale.

President and Chief Executive Officer of Energy Fuels Inc., Ross Bhappu, commented: 

"Heavy rare earth production is a severe pinch point in North American and European permanent magnet supply chains. 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 and Vacuumschmelze."

Capital Cost & Funding

The total capital expenditure (capex) for the heavy rare earth oxide expansion is estimated at approximately $104 million. The debt component is targeted to be covered by the Company's previously announced conditional loan commitment from the US government. The equity component will be covered from the company's working capital, which totalled approximately $0.96 billion as of March 31, 2026. The company has also applied for grant funding from other US government agencies.

Supply Chain Integration

The White Mesa Mill's heavy rare earth expansion is sized to process the anticipated near-term monazite output from the Donald Project JV in Australia. Subject to a positive Final Investment Decision (FID) anticipated in the third quarter of 2026, Donald is targeted to produce approximately 8,500 to 9,500 tonnes of monazite concentrate annually beginning in 2028. This volume, together with additional third-party feedstock currently under contract and in discussion, is targeted to fully utilise the Mill's current neodymium-praseodymium oxide capacity and planned terbium and dysprosium oxide capacity. In turn, these rare earth oxides are targeted to supply approximately 70% of the feedstock required for Australian Strategic Materials Limited's (ASX: ASM) existing and planned metal and alloy capacity in South Korea, subject to completion of the planned ASM acquisition.

Phase 2 Expansion Plan

Energy Fuels plans a further Phase 2 expansion of the White Mesa Mill in 2029, targeting total separation capacities of 6,294 tonnes per annum of neodymium-praseodymium oxide, 80 tonnes per annum of terbium oxide, and 288 tonnes per annum of dysprosium oxide. The company states that this Phase 2 expansion is targeted to process monazite supplied largely by its current and development projects, including all phases of the Donald Project, the Vara Mada Project in Madagascar, and the Bahia Project in Brazil, as well as third-party monazite concentrates and MRECs.

Next Steps

The terbium and dysprosium oxide circuits are targeted for commissioning by the fourth quarter of 2027. The samarium, europium and gadolinium circuits are targeted for completion by the end of 2028. A FID on the Donald Project is targeted for the third quarter of 2026, following completion of negotiations for project debt financing with Export Finance Australia and other lenders, with a target of A$220 million. The planned Phase 2 Mill expansion is targeted for 2029.

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