Energy Fuels Advances U.S. Supply Chain for Critical Minerals

Energy Fuels CA2926717083

Amid a concerted push by the United States to secure alternatives to Chinese-sourced materials, particularly the rare earth elements vital for electric vehicles and defense systems, Energy Fuels has reported a significant technical breakthrough. This development enhances the company's strategic profile as a domestic supplier, a status reflected in its recent share price appreciation.

In a key milestone, Energy Fuels has announced that its U.S.-produced dysprosium oxide, with a purity of 99.9%, has successfully met all initial quality and purity requirements set by a major South Korean automotive manufacturer. The material, sourced from the company's White Mesa facility in Utah, is now qualified for further processing into permanent magnets.

Several critical details emerge from this announcement:
* A pilot-scale batch of 29 kilograms of dysprosium oxide was produced.
* The achieved purity of 99.9% exceeds the automotive industry specification of 99.5%.
* Qualification was secured through a prominent South Korean permanent magnet producer.
* Energy Fuels has become the first U.S. company to qualify both "light" and "heavy" rare earth elements for magnet applications.

This achievement positions the firm as a potential key supplier within a supply chain historically dominated by China.

Geopolitical Context Adds Urgency

The timing of this progress is notable within a politically sensitive market. China's imposition of export controls on seven rare earths in April 2025—including dysprosium, terbium, and samarium—remains in effect. These restrictions intensify pressure on Western nations to develop independent production capacities.

Dysprosium oxide is a crucial component in neodymium-iron-boron permanent magnets, which are essential for numerous high-technology applications such as:
* Electric and hybrid vehicles
* Advanced robotics
* Drones and missile systems
* Propulsion and guidance units
* Control rods in naval nuclear reactors

Consequently, the successful qualification bolsters not only Energy Fuels' standing but is also drawing attention from defense and automotive sectors seeking supply chain resilience.

Roadmap to Commercial Production

Concurrently, the company is advancing plans to build commercial refining capacity for heavy rare earths at its White Mesa plant. The projected annual output targets are:
* 48 tonnes of dysprosium oxide
* 14 tonnes of terbium oxide

Commercial operations are scheduled to commence by the fourth quarter of 2026. The next phase of development is imminent: Energy Fuels plans to initiate pilot testing for terbium oxide as early as next week, with kilogram-scale samples expected to be available for qualification processes by early 2026. Subsequent pilot projects for gadolinium oxide and samarium oxide are also planned.

Samarium is a central element in samarium-cobalt magnets, which are used in radar, sonar, and missile guidance systems where extreme temperature stability is required. Qualification in this area would significantly broaden Energy Fuels' portfolio of strategically important materials.

Market Performance and Financial Backing

The market has begun to price in this enhanced strategic role. Shares gained 7.59% on Friday to close at €12.83, bringing year-to-date gains to approximately 132%. The stock, however, continues to trade notably below its 52-week high, underscoring the inherent volatility in the sector.

Financially, the company fortified its position in October 2025 by completing a convertible note offering worth $700 million. These funds are earmarked for financing capacity expansion. Operationally, Energy Fuels currently owns and operates the only fully licensed conventional uranium mill in the United States. It is leveraging this unique asset to build an integrated rare earths value chain.

The newly secured dual qualification for light and heavy rare earths in magnet applications represents a structural step toward greater U.S. independence in critical minerals. It establishes a foundation for the upcoming milestones leading to the planned production ramp-up starting in 2026.