Energy Fuels is advancing a vertically integrated rare-earth strategy that could ultimately support production of approximately 15,700 tons of rare-earth permanent magnets annually, while a conditional $725 million U.S. financing commitment could help fund expansion of its domestic critical-minerals infrastructure.
The centerpiece is a planned Phase 2 expansion at the White Mesa Mill in Utah. The project is designed to increase the mill’s rare-earth oxide production capacity from approximately 850 to 1,000 tonnes per year of NdPr oxide under the current Phase 1 configuration to more than 6,000 tonnes annually. Combined Phase 1 and Phase 2 capacity would also include approximately 80 tonnes per year of terbium oxide and 288 tonnes of dysprosium oxide.
Energy Fuels expects the expanded facility to process monazite from its Donald, Vara Mada and Bahia projects, along with third-party feedstock. Subject to completing its proposed acquisitions of Australian Strategic Materials and VAC, the resulting rare-earth oxides are expected to support more than 100% of the planned internal demand at ASM’s metals and alloys operations, which in turn could provide enough magnet alloy to support more than 100% of VAC’s planned U.S. and European magnet manufacturing expansions.
The integrated platform could ultimately produce approximately 15,700 tonnes of rare-earth permanent magnets per year. Energy Fuels illustrated the potential scale as enough magnets for as many as 6 million electric and hybrid vehicles, 4 million humanoid robots, 31 million internal combustion vehicles, 3,140 offshore wind turbines or 7.8 billion iPhones annually, depending on specific product designs and applications.
The Phase 2 expansion carries estimated initial capital costs of approximately $410 million, plus or minus 15%. Energy Fuels expects completion around mid-2029, subject to licensing, financing, sufficient feedstock and a positive final investment decision.
Funding support could come from a conditional $725 million financing commitment received in June. Subject to further due diligence, definitive agreements, approvals and customary closing conditions, the financing would take the form of a 20-year loan supporting expanded critical-minerals processing at White Mesa and a planned rare-earth metals and alloys facility in the U.S.
Energy Fuels had approximately $996 million of working capital as of June 30, including $58.4 million of cash and equivalents and $878.3 million of marketable securities.
The company is already moving ahead with another piece of the downstream buildout. In July, Energy Fuels began construction of a commercial-scale heavy rare-earth plant at White Mesa for terbium, dysprosium and other heavy rare-earth oxides, which are intended to feed future metal, alloy and magnet-making capacity.
The broader plan would combine feedstock from geographically diversified mining projects, separation at White Mesa, metals and alloy production through ASM, and permanent magnet manufacturing through VAC. Energy Fuels described the strategy as an effort to establish commercial capabilities across every critical step of the rare-earth value chain.
