en.Wedoany.com Reported - US uranium and rare earth producer Energy Fuels Inc. (NYSE American: UUUU | TSX: EFR) has officially launched a $104 million expansion project at its White Mesa Mill in Utah. The project adds commercial-scale heavy rare earth oxide production and mixed rare earth carbonate (MREC) processing circuits on top of the facility's existing commercial neodymium-praseodymium oxide separation capacity. The start of construction marks the facility's transition from the engineering and planning phase to actual construction, reducing key development risks and advancing the company's goal of building an integrated "mine-to-magnet" supply chain.
The expansion is being implemented in two phases: the terbium and dysprosium separation circuits are scheduled for commissioning in the fourth quarter of 2027, with the samarium, europium, and gadolinium circuits to be completed by the end of 2028. Once complete, White Mesa will remain the only rare earth processing facility in the US with existing commercial monazite processing capability, while significantly expanding the range of rare earth products it can produce. Processing facilities are among the most capital-intensive and technically challenging links in the rare earth supply chain, and entering actual construction significantly reduces execution uncertainty compared with projects still in the engineering or permitting stage.
In terms of capacity planning, upon completion of the expansion, White Mesa is expected to produce approximately 20 tonnes of terbium oxide, 120 tonnes of dysprosium oxide, and roughly 140 tonnes of samarium oxide, 20 tonnes of europium oxide, and 140 tonnes of gadolinium oxide per year. Terbium and dysprosium enhance the coercivity and thermal stability of neodymium-iron-boron permanent magnets, enabling them to maintain performance at the high operating temperatures required in electric vehicle motors, robotics, defense applications, wind turbines, and data centers. As commercial production of heavy rare earth oxides is currently concentrated in China, this expansion positions the facility within one of the most supply-constrained segments of the global rare earth market.
The new MREC circuit is the core element of the expansion. This circuit enables White Mesa to process mixed rare earth carbonate and monazite concentrates while continuing to produce natural uranium concentrate, allowing the facility to accept a broader range of rare earth intermediate products without relying on a single feedstock source. With a diversified feedstock pipeline, fixed operating costs can be spread across greater output, potentially improving the facility's economics while reducing dependence on any single supplier.
One of the primary feedstock sources for White Mesa's expanded capacity is monazite concentrate from the Donald Project joint venture (JV) in Victoria, Australia. The Donald Project is scheduled for a final investment decision (FID) in the third quarter of 2026, and if approved, is expected to supply approximately 8,500 to 9,500 tonnes of monazite concentrate annually from 2028 onward. Energy Fuels also stated that the facility will continue sourcing materials from third-party suppliers. The company's President and Chief Executive Officer, Mark Chalmers, said that in the rare earth business, the next step could be a final investment decision on the Donald Project.
White Mesa is positioned as the processing hub for Energy Fuels' rare earth operations. Under the company's proposed acquisition of Australian Strategic Materials (ASM), rare earth oxides produced at White Mesa will supply ASM's metallization and alloy capacity, with the alloy then feeding Vacuumschmelze's (VAC) permanent magnet manufacturing plant in Sumter, South Carolina—Energy Fuels' acquisition of VAC is also progressing. The planned oxide output is expected to meet approximately 70% of the feedstock requirements for ASM's existing and planned metal and alloy capacity in South Korea. Chalmers noted that with the ASM acquisition complete, the company possesses all the skills needed from mining to alloy, and the integrated model helps reduce reliance on third-party processors between stages while allowing the company to retain more value from concentrate to finished magnets.
Funding for the expansion comes from three sources: a previously announced conditional loan commitment from the US Office of Strategic Capital, additional US government grant applications, and the company's existing balance sheet. As of March 31, 2026, Energy Fuels reported working capital of approximately $960 million. Unlike most emerging rare earth developers, the company operates a mature uranium business that provides existing cash flow during its critical minerals expansion. The combination of internal liquidity, potential government support, and operating cash flow reduces dependence on repeated equity financing.
Beyond the current construction plan, Energy Fuels has also outlined a Phase 2 expansion targeted for startup in 2029. Upon completion of Phase 2, annual separation capacity would increase to approximately 6,294 tonnes of neodymium-praseodymium oxide, 80 tonnes of terbium oxide, and 288 tonnes of dysprosium oxide, with feedstock sources including the Donald Project as well as the Vara Project in Madagascar and a project in Bahia, Brazil. Company presentations indicate that the processing platform could support approximately 15,700 tonnes of annual permanent magnet production through the integrated supply chain. Subsequent execution milestones include the final investment decision on the Donald Project, commissioning of the terbium-dysprosium circuits in the fourth quarter of 2027, completion of the remaining heavy rare earth circuits by the end of 2028, and progress on the ASM and VAC acquisitions.
