Energy Fuels Begins Construction on a Heavy Rare Earth Oxide Expansion in Utah
Energy Fuels Begins Construction on a Heavy Rare Earth Oxide Expansion in Utah
Energy Fuels Inc. has begun construction on an expansion of its White Mesa Mill in Utah designed to enable commercial-scale production of heavy rare earth oxides. The project will add capacity for terbium (Tb), dysprosium (Dy) and several other separated rare earth oxides, complementing the mill’s existing ability to produce neodymium-praseodymium (NdPr) oxide. The company frames the investment as a critical step in building an integrated U.S.-anchored mine-to-magnet supply chain serving automotive, robotics, data-centre, energy and defence applications.
Heavy rare earths such as terbium and dysprosium are essential additives in high-performance rare earth permanent magnets. They improve coercivity and high-temperature stability, allowing motors and generators to remain efficient under demanding conditions. Global supply of separated heavy rare earth oxides remains highly concentrated; any credible non-Chinese production capacity therefore carries strategic weight for manufacturers and policymakers seeking diversified sources.
Scope and Capacity of the Expansion
The White Mesa Mill already has commercial capacity to produce up to 1,000 tonnes per year of separated NdPr oxide. The expansion under construction is designed to add approximately 20 tonnes per year of terbium oxide, 120 tonnes per year of dysprosium oxide, 140 tonnes per year of samarium oxide, 20 tonnes per year of europium oxide and 140 tonnes per year of gadolinium oxide, along with associated recovery of other rare earth elements. Commissioning of the terbium and dysprosium circuits is targeted for the end of 2027, with the samarium, europium and gadolinium circuits expected by the end of 2028.
The project also includes a mixed rare earth carbonate circuit that will broaden the range of feedstocks the mill can process while continuing to produce uranium oxide concentrate alongside rare earth products. Total capital expenditure is estimated at approximately $104 million.
Feedstock Strategy and the Donald Project Link
The expansion is sized and timed to process monazite concentrate expected from Energy Fuels’ Donald Project joint venture in Australia, subject to a final investment decision. Donald is projected to produce roughly 8,500–9,500 tonnes of monazite concentrate per year beginning in 2028. That volume, together with additional third-party monazite and other feedstocks under contract or discussion, is expected to utilise both the existing NdPr capacity and the new heavy rare earth circuits. The alignment of mill expansion with upstream mine development is intended to secure a reliable, long-term feedstock base rather than relying solely on spot or opportunistic supply.
Funding and Policy Support
A substantial portion of the $104 million capital cost is expected to be supported by U.S. government grants and loans. Energy Fuels has previously disclosed a conditional loan commitment from the U.S. government that is planned to cover the debt component of the heavy rare earth expansion. The availability of public financing reflects the strategic designation of rare earths—particularly the heavy elements critical to permanent magnets—as priority materials for domestic supply-chain resilience.
Integration into a Mine-to-Magnet Platform
Energy Fuels is pursuing a broader platform that extends beyond oxide production. Planned or announced steps include conversion of oxides into metals and alloys and, through partnerships or acquisitions, participation further downstream in magnet manufacturing. Producing both light (NdPr) and heavy (Tb, Dy) separated oxides at White Mesa positions the company to supply the full suite of rare earth inputs required for high-end permanent magnets, rather than only the light rare earth fraction.
If executed successfully, the Utah expansion would represent one of the few commercial-scale heavy rare earth oxide production capabilities outside China, adding a tangible Western source of Tb and Dy oxides for magnet makers and end-users in automotive, wind energy, robotics and defence.
Timeline and Next Phases
Construction is under way. The first heavy rare earth circuits (Tb and Dy) are scheduled for commissioning in the fourth quarter of 2027, followed by the additional Sm, Eu and Gd circuits in 2028. A further Phase 2 expansion is already under consideration for later in the decade, contingent on feedstock availability from Donald and other sources, which would significantly increase NdPr, Tb and Dy capacities.
Implications for Critical Minerals Supply Chains
For magnet manufacturers and OEMs seeking to reduce concentration risk, the prospect of U.S.-based heavy rare earth oxide supply is strategically relevant even at the modest initial volumes planned. For the broader rare earth market, the project demonstrates that policy support, existing processing infrastructure (White Mesa’s dual uranium–rare earth capability) and secured monazite feedstock can be combined to advance Western heavy rare earth capacity. Execution risk remains—construction, commissioning, feedstock delivery and offtake arrangements must all proceed as planned—but the start of construction moves the project from announcement to physical progress.
Outlook
Energy Fuels’ decision to begin construction on the White Mesa heavy rare earth oxide expansion marks a concrete step toward commercial U.S. production of terbium and dysprosium oxides. With targeted commissioning of the first circuits in late 2027, a defined feedstock pathway via the Donald Project, and government financing support, the project is positioned to add a strategically important source of heavy rare earth oxides to the Western supply chain. Success will depend on timely execution and the parallel development of upstream monazite supply; if those elements align, White Mesa will stand as one of the few non-Chinese commercial producers of the heavy rare earth oxides essential to high-performance permanent magnets.
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