Energy Fuels Positions for Critical Minerals Boom as US Prioritizes Domestic Supply Chain

• Energy Fuels is developing a hub focused on 10+ commercially recoverable critical elements, positioning itself at the center of America's reshoring effort.
• Unlike competitors who only talk possibilities, Energy Fuels has actually produced rare earth materials at its White Mesa Mill.
• The company is building a non-China supply chain through partnerships in South Korea, Madagascar, Australia, and Brazil.
• The new administration's emphasis on critical minerals and reshoring aligns perfectly with Energy Fuels' established strategy.
• Beyond rare earths, the company maintains uranium production capability and is developing heavy mineral sands projects that generate significant cash flow.

Building America's Critical Minerals Hub: The Energy Fuels Advantage

In a rapidly shifting geopolitical landscape where critical minerals have become central to national security concerns, Energy Fuels has positioned itself as a uniquely capable player in America's reshoring efforts. Mark Chalmers, President and CEO of Energy Fuels, highlights the company's strategic focus:

"We are building a critical mineral hub focused on 10 plus commercially recoverable critical elements, all required for reshoring our capabilities in the United States."

This strategy places Energy Fuels at the intersection of several powerful trends: the push for energy independence, the race for critical minerals essential to technologies from electric vehicles to defense systems, and the growing bipartisan consensus that America must reduce dependence on foreign suppliers, particularly China.

What sets Energy Fuels apart is that they've been systematically building this capacity for years, long before it became a political priority. Chalmers explains:

"I don't think that the timing could ever be better for what our company's doing and how we've been positioning this company for the last five years."  

This foresight has given Energy Fuels a significant first-mover advantage in an increasingly crowded space.

Most importantly, Energy Fuels is already producing, not just planning. The company has successfully produced Neodymium-Praseodymium (NDPR) oxide at its White Mesa Mill, a critical material used in permanent magnets for electric vehicles, wind turbines, and numerous defense applications. This achievement distinguishes Energy Fuels from many competitors who are still in the conceptual phase.

Interview with President & CEO, Mark Chalmers

The Shift from Globalization to Local Production

The fundamental shift in American industrial policy away from globalization and toward reshoring critical manufacturing capabilities is providing Energy Fuels with powerful tailwinds. As Chalmers bluntly states, "People just went to cheap, got addicted to cheap. They let China take control of a lot of critical elements and rare earths in particular. They let Russia take control of the nuclear fuel products. Nobody cared."

This decades-long trend has created vulnerabilities that are now widely recognized as untenable.

"It's a panic right now," Chalmers observes, "These countries have control over us in a material way because they got established 20 years ago, 30 years ago, and you can't just wiggle your nose and change it in a week or a month or a year, it's going to take years to claw this back."

This realization has created urgency at the highest levels of government. During recent meetings in Washington DC, Chalmers reports that the reception to Energy Fuels' work was "extraordinary." The company's concrete progress in establishing domestic production capabilities aligns perfectly with the new administration's priorities to reduce dependence on foreign suppliers, particularly for materials deemed critical to economic and national security.

The company's positioning as "a company of doers" resonates particularly well in this environment. While many are talking about future possibilities, Energy Fuels has been actively building capability. Their White Mesa Mill is already processing uranium and can also process rare earths, though not simultaneously. They're now advancing "Phase Two" capabilities that will be five times larger than the current operation.

International Collaborations & Supply Chain Dynamics

Despite the focus on domestic production, Energy Fuels recognizes that building a complete non-China supply chain requires international partnerships. The company recently announced a strategic alliance with POSCO, a major South Korean industrial conglomerate, to advance their rare earth materials to the next processing stages.

This gap in the domestic supply chain makes international partnerships essential in the near term.

"South Korea, POSCO, and some of the Japanese are trying to build a completely 100% non-China supply chain of these critical elements."

The POSCO relationship provides a critical bridge to market for Energy Fuels' rare earth products. The company is shipping larger quantities of material to POSCO, which will process it into metals, alloys, and ultimately magnets.

"We hope to have magnets that come from White Mesa this year. And it is even potential that some of that material can make it into hybrids or EV's this year as well."

This partnership provides validation from a major global player and creates a pathway to market that doesn't involve China. It also increases Energy Fuels' exposure to the massive EV sector and creates competitive tension with other potential customers in defense and renewable energy industries. While developing domestic processing capacity remains a long-term goal, this partnership enables Energy Fuels to establish market presence immediately.

Updates on Madagascar & Australia Projects

Energy Fuels' strategy extends beyond domestic processing to securing reliable sources of raw materials through international projects. The company has made significant progress on two major rare earth and heavy mineral sands projects: the Toliara project in Madagascar and the Donald project in Australia.

In Madagascar, the company closed on the acquisition in late 2024, had a project suspension lifted, and signed an MOU with the government. Legal teams are now working to formalize these agreements. Chalmers describes the Toliara project as "a world-class heavy mineral sands and rare earth mine combined," noting it "would be the largest investment in the history of the United States in Madagascar."

The project is advancing through a Final Investment Decision (FID) process scheduled for completion in early 2026, with construction potentially beginning shortly thereafter. This timeline aligns with the company's "Project 2028" goal to supply 50% of the United States' rare earth needs by 2028.

In Australia, the Donald project is even further advanced. Energy Fuels is earning a 49% interest in the project, which is scheduled to complete its FID process by mid-2024. Most permits are already in place, with final approvals from ministers expected soon. Chalmers indicates that construction could begin at Donald later this year.

Both projects provide significant sources of monazite, a mineral containing rare earth elements that can be processed at the White Mesa Mill. Importantly, these projects also produce titanium and zirconium, which Chalmers describes as "a real cash generator." This diversified revenue stream makes the economics of these projects particularly attractive, as the rare earth elements are effectively produced as byproducts of profitable heavy mineral sand operations.

Strategic Partnerships & Market Positioning

Beyond POSCO, Energy Fuels has been developing strategic partnerships to strengthen its position throughout the supply chain. The company recently announced an expanded relationship with Chemours, which has been supplying monazite to Energy Fuels for several years.

This relationship has been pivotal to Energy Fuels' progress in rare earth processing. As Chalmers explains, "It's allowed us to fully test that monazite, design the phase one and produce from phase one." The material previously went to China but now comes to Energy Fuels' mill in the United States, demonstrating the company's role in reshoring the supply chain.

The expanded relationship with Chemours leverages complementary capabilities. Chemours has infrastructure on the East Coast and permits to concentrate monazite, while Energy Fuels has processing capabilities at White Mesa in the West. Together, they create a nationwide network that can more efficiently handle these materials.

Chalmers highlights the strategic significance:

"It's a good look for two US companies of our size working together to solve a lot of these critical elements and the rare earths right now with infrastructure able to do it right now."

The potential "critical mass" created by these partnerships positions Energy Fuels as a central node in the emerging domestic supply chain.

These partnerships reflect Energy Fuels' broader strategy of building a complete, integrated rare earth supply chain from mining through to magnets. The company has hired Debra Benethum, formerly of General Motors, to help develop their strategy for the metals, alloys, and magnet stages of production. This focus on vertical integration distinguishes Energy Fuels from many competitors who are only addressing portions of the supply chain.

Government Relations & Geopolitical Considerations

The shifting political landscape in the United States presents both opportunities and challenges for Energy Fuels. The new administration's focus on reshoring critical mineral production aligns perfectly with the company's strategy, and Chalmers reports receiving an "extraordinary" reception during recent meetings in Washington DC.

However, policy changes such as new tariffs create some uncertainty. Chalmers acknowledges this dynamic:

"The administration is moving quickly. And I think when they move, they realize in some cases they need to have some waivers or adjustments to what the policy could be."

Despite this uncertainty, he remains confident that Energy Fuels can navigate these changes: "We're driving our bus that we can manage."

The company's geographic diversification also helps mitigate geopolitical risks. With projects in the United States, Madagascar, and Australia, and partnerships in South Korea, Energy Fuels isn't overly exposed to any single jurisdiction. When asked about geopolitical risk, Chalmers pragmatically notes that such risks exist everywhere: "Geopolitical risk, I mean, they're not just in foreign countries. They're also in the United States and in Canada and Mexico."

This diversified approach positions Energy Fuels to benefit from the broader global trend toward secure supply chains while maintaining flexibility to adapt to specific policy changes in any given country. Chalmers summarizes their approach:

"We just take it a step at a time, getting the right projects, getting the right strategy in place with the right focus, delivering on what we say."

Uranium Market Insights & Future Outlook

While rare earths have become a major focus, Energy Fuels maintains its uranium production capabilities. The company sees uranium as complementary to its rare earth strategy, with both addressing critical energy and security needs.

Chalmers offers a measured assessment of the current uranium market:

"The spot is down, but the term market is still pretty strong. I think people can get a contract in the eighties [dollar range] at term."

He indicates that Energy Fuels is not eager to sell at current spot prices in the $60s, believing the replacement value of uranium exceeds $100 per pound.

This perspective on uranium pricing reflects the company's broader philosophy of focusing on long-term value rather than short-term gains. By maintaining uranium production capabilities alongside their rare earth development, Energy Fuels offers investors exposure to multiple critical mineral markets through a single company.

Looking forward, Chalmers expects 2025 to be a pivotal year. By year-end, the company expects to have multiple projects with completed or advancing FID processes, feasibility studies, and permits. This will allow them to:

"Knit it together based on the most updated information and show people that it has the scale, the ability to move forward and supply, we believe, 50% of the United States rare earths by 2028."

Investment Thesis for Energy Fuels

• First-Mover Advantage: Energy Fuels has already produced rare earth products while competitors are still in planning stages, giving it a significant head start in capturing market share.
• Vertical Integration Strategy: The company is building capabilities across the supply chain from mining to processing to eventual magnet production, creating multiple value capture opportunities.
• Diversified Revenue Streams: Energy Fuels combines rare earth elements, uranium, and heavy mineral sands (titanium/zirconium) production, providing multiple paths to profitability.
• Strong Government Alignment: The company's reshoring focus perfectly matches new administration priorities, potentially unlocking funding and policy support.
• International Partnerships: Strategic relationships with POSCO, Chemours, and others create pathways to market and strengthen competitive positioning.
• Execution Track Record: Management has consistently delivered on strategic objectives over the past five years, building credibility for future plans.
• "Project 2028" Growth Potential: The goal to supply 50% of US rare earth needs by 2028 offers substantial scaling opportunity from current operations.

Energy Fuels stands at the convergence of powerful geopolitical and market forces driving the reshoring of critical mineral supply chains. The company's foresight in positioning for this shift years before it became a political priority has created a substantial first-mover advantage. With actual production already underway, advancing international projects, strategic partnerships throughout the supply chain, and strong alignment with government priorities, Energy Fuels offers investors exposure to one of the most compelling macro trends of the decade.

As Chalmers summarizes: "We started this diversification, still keeping uranium front and center five years ago, and the timing couldn't be better." For investors seeking to capitalize on America's growing focus on critical minerals and energy security, Energy Fuels presents a unique opportunity to invest in a company that is already delivering on the promise of domestic production.

Macro Thematic Analysis: The Critical Minerals Reshoring Imperative

The drive to reshore critical mineral supply chains represents one of the most significant industrial policy shifts in decades. After a 30-year period of globalization that prioritized cost efficiency over security of supply, the pendulum has swung dramatically toward domestic production of essential materials. This shift transcends traditional political divisions, with bipartisan support for reducing dependence on geopolitical rivals, particularly China.

The urgency driving this change stems from a growing recognition of vulnerability. China currently dominates global rare earth production and processing, controlling approximately 85% of the market. As these materials have become essential components in technologies from electric vehicles to wind turbines to advanced weaponry, this concentration of supply creates significant national security concerns.

The economic stakes are equally compelling. The rare earth magnet market alone is projected to grow from approximately $20 billion today to over $40 billion by 2030, driven by EV adoption, renewable energy expansion, and increased defense spending. Companies that can successfully establish domestic production capabilities stand to capture significant value in this growing market.

Policy support has become increasingly robust. Recent executive orders prioritizing domestic critical mineral production, along with funding through initiatives like the Defense Production Act and the Inflation Reduction Act, create powerful financial incentives for reshoring. This government backing significantly reduces market risk for early movers like Energy Fuels.

However, building a complete domestic supply chain presents substantial challenges. As Mark Chalmers notes, "You can't just wiggle your nose and change it in a week or a month or a year, it's going to take years to kind of claw this back." Processing capabilities, technical expertise, and infrastructure development require significant time and capital investment.

This tension between urgent need and development reality creates a unique opportunity for companies with existing capabilities. Those that can bridge the gap between current dependence and future self-sufficiency will be particularly well-positioned to benefit from premium pricing and preferential treatment as governments prioritize supply security over absolute cost.

The reshoring imperative will likely accelerate over the coming years, driven by both geopolitical tensions and industrial policy. For investors, this creates a multi-year tailwind for companies directly involved in building domestic critical mineral supply chains, with particular advantage to those already producing rather than merely planning.