Energy Fuels has begun construction to expand its White Mesa Mill in Utah, US, aiming to add commercial-scale production of heavy rare earth oxides.
The project targets the manufacturing of terbium and dysprosium oxides, with plans to further process these minerals for use in industries such as automotive, robotics, energy, defence and data centres.
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Its estimated capital expenditure stands at $104m.
The expansion, which will build on existing light rare earth oxide output, marks a key phase in Energy Fuels’ strategy to develop an integrated mine-to-magnet supply chain.
Current capacity at the White Mesa Mill enables the production of up to 1,000 tonnes per annum (tpa) of separated neodymium-praseodymium oxide.
The mill expansion is designed to introduce annual production of around 20tpa of terbium, 120tpa of dysprosium, as well as additional output of samarium, europium and gadolinium oxides.
Energy Fuels expects to complete the circuits for terbium and dysprosium by the end of 2027, with samarium, europium and gadolinium circuits following by the end of 2028.
Energy Fuels president and CEO Ross Bhappu said: “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.”
The expansion schedule aligns with anticipated feedstock from Energy Fuels’ Donald Project joint venture in Australia.
This project could supply 8,500–9,500tpa of monazite concentrate, beginning in 2028, subject to a final investment decision expected in the third quarter of 2026.
The company reports that rare earth oxides produced at White Mesa are expected to supply roughly 70% of the feedstock needed for Australian Strategic Materials’ metal and alloy capacity in South Korea.
This in turn would support magnet manufacturing at the Vacuumschmelze (VAC) facility in Sumter, South Carolina, US.
Funding is expected from various government grants and loans, including a previously announced loan commitment from the US Government, with the remainder to be drawn from company working capital of approximately $960m as of 31 March 2026.
Energy Fuels intends to increase the mill’s capacity further in 2029, targeting production of 6,294tpa of neodymium-praseodymium, 80tpa of terbium and 288tpa of dysprosium oxides.
Last month, the company signed a definitive agreement to acquire 100% of the VAC facility from Ara Partners for nearly $1.9bn in a cash-and-stock transaction.
