Energy Fuels Unveils Robust Expansion Plan Following Key Feasibility Study

Energy Fuels CA2926717083

A definitive feasibility study released by Energy Fuels on January 15, 2026, has outlined a compelling economic case for a major expansion of its rare earth element processing capabilities at the White Mesa Mill. The study, deemed bankable, forecasts that a capital investment of $410 million is projected to yield an average annual EBITDA of $311 million, positioning the uranium and rare earths producer as a potential leader in the Western critical minerals market.

The Phase 2 expansion study presents robust financial metrics. The estimated capital expenditure of $410 million comes in below prior projections. Using an 8% discount rate, the project's net present value (NPV) is calculated at $1.9 billion, equating to $7.96 per share. The post-tax internal rate of return is a strong 33%.

Over the initial 15-year period, the company anticipates average annual production costs for neodymium-praseodymium oxide equivalent to be $29.39 per kilogram. When combined with the potential of the Vara-Mada project in Madagascar, the total NPV for Energy Fuels' portfolio rises to $3.7 billion, with a combined annual EBITDA potential reaching $765 million.

Cementing a Dominant Supply Role

The planned Phase 2 facility represents a significant scale-up. Current Phase 1 operations at White Mesa produce approximately 1,000 tonnes of neodymium-praseodymium oxide annually. The expansion aims to boost this output to over 6,000 tonnes per year, alongside 240 tonnes of dysprosium and 66 tonnes of terbium.

According to forecasts from Benchmark Mineral Intelligence, this capacity could allow Energy Fuels to meet an estimated 45% of total U.S. rare earths demand in the near term. For heavy rare earths like terbium and dysprosium, the company could potentially satisfy 100% of domestic U.S. requirements by 2030.

CEO Mark Chalmers highlighted the project's competitive edge, noting that the company's operating costs and expected margins rank in the global first quartile, inclusive of Chinese producers. This cost structure, paired with domestic U.S. production, directly addresses a critical vulnerability in the national supply chain.

Uranium Operations Provide Concurrent Strength

The company's uranium business delivered a strong performance in 2025, with production exceeding 1.6 million pounds—11% above forecast. Processing in December 2025 alone reached 350,000 pounds.

For 2026, Energy Fuels is targeting annual uranium production of over 2 million pounds. With production costs estimated between $23 and $30 per pound and uranium currently trading around $83 per pound, margins remain healthy. New long-term supply agreements with U.S. utilities have secured delivery commitments extending to 2032.

Solid Financial Foundation

Following a convertible note offering that raised $700 million, Energy Fuels holds approximately $1 billion in cash. The note carries a notably low coupon of just 0.75%, substantially below the 4% to 5.5% rates competitors have paid for similar instruments.

On January 9, 2026, HC Wainwright & Co. reaffirmed its Buy rating on the company's shares, issuing a price target of $26.75. Energy Fuels' current market capitalization stands at roughly $5 billion.

Upcoming Catalysts on the Horizon

The current quarter is set to see several key milestones. These include a final investment decision for the Vara-Mada project in Madagascar, an updated feasibility study for the Donald Project in Australia, and continued scaling of rare earth processing at White Mesa. Potential U.S. government funding programs for critical minerals could provide additional support for these initiatives.