Energy Fuels Inc. announced July 29 that construction has begun on a $104 million expansion of its White Mesa Mill in Utah to enable large-scale production of heavy rare earth oxides. The project, which builds upon construction efforts initiated in late March, is designed to supply critical materials for the automotive, robotics, data center, energy, and defense industries.
Addressing Supply Chain Bottlenecks
The expansion aims to address a significant bottleneck in the supply of permanent magnets. According to Energy Fuels, heavy rare earth production represents a "severe pinch point" in North American and European permanent magnet supply chains. By adding heavy rare earth oxide capacity to its existing light-rare earth oxide production, the company intends to complete an integrated mine-to-magnet platform.
Ross Bhappu, President and Chief Executive Officer of Energy Fuels, stated that the move to commercial-scale production follows the company's successful piloting of heavy rare earth oxides. Bhappu noted that the production of both light and heavy rare earth oxides is a key differentiator in the company's strategy to build a fully integrated supply chain, a goal expected to be realized upon the anticipated closing of pending acquisitions of Australian Strategic Materials (ASM) and Vacuumschmelze (VAC).
Increased Oxide Production Capacity
The planned expansion at the White Mesa Mill is designed to significantly increase the facility's output of specialized oxides. The project intends to add the capacity to produce up to approximately 20 tonnes per annum (tpa) of terbium (Tb), 120 tpa of dysprosium (Dy), 140 tpa of samarium (Sm), 20 tpa of europium (Eu), and 140 tpa of gadolinium (Gd) oxides.
These specific heavy rare earths, terbium and dysprosium, are essential components added to high-end rare earth permanent magnets to increase resistance to demagnetization, also known as coercivity, and to improve high-temperature performance. These properties enable the creation of smaller, lighter, and more efficient electric motors. The facility currently maintains a commercial capacity to produce up to 1,000 tpa of separated Neodymium-Praseodymium (NdPr) oxide.
Project Timeline and Feedstock
The expansion will be completed in stages over the next several years. The company expects to finish the addition of the terbium and dysprosium circuits by the end of 2027. The circuits for samarium, europium, and gadolinium are expected to be added by the end of 2028.
This expansion is timed to process anticipated monazite output from the company's Donald Project joint venture in Australia. Following a positive final investment decision, which is anticipated in the third quarter of 2026, the Donald Project is expected to produce between 8,500 and 9,500 tonnes of monazite concentrate annually starting in 2028. This volume, combined with additional third-party feedstock, is expected to fully utilize the mill's current and planned capacities.
Financing and Technical Capabilities
The construction project is estimated to require a total capital expenditure of approximately $104 million. This investment is expected to be supported largely through various government grants and loans. The debt portion of the expansion is planned to be covered by a previously announced conditional loan commitment from the U.S. government, while the equity component will be drawn from the company's working capital, which totaled approximately $0.96 billion as of March 31, 2026.
Furthermore, the expansion includes a new circuit for processing mixed rare earth carbonates (MREC). This new capability will allow the mill to process additional types of feedstocks produced globally that are rich in heavy rare earth oxides. Crucially, the MREC circuit will enable the White Mesa Mill to produce both rare earth oxides and uranium simultaneously at a commercial scale.
Long-Term Expansion Goals
Energy Fuels has outlined long-term growth plans following this current expansion. The company plans to further expand the mill in 2029 to increase overall capacity to 6,294 tpa of NdPr, 80 tpa of Tb, and 288 tpa of Dy oxides. This future expansion is expected to process monazite from several projects, including the Donald Project in Australia, the Vara Mada Project in Madagascar, and the Bahia Project in Brazil.
The scale of the proposed integrated supply chain is significant. The company anticipates that the total integrated production could eventually reach 15,700 tonnes of rare earth permanent magnets per year. According to company projections, these volumes could theoretically supply up to six million electric or hybrid electric vehicles annually, four million humanoid robots, or 7.8 million iPhones per year.
Mill Background and Operations
The White Mesa Mill, located in Utah, is currently the only fully licensed and operating conventional uranium processing facility in the United States. In addition to its rare earth operations, Energy Fuels focuses on uranium, vanadium, and medical isotopes, maintaining a significant role as a U.S. producer of natural uranium concentrate used by nuclear utilities for carbon-free energy.
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