Energy Fuels Achieves Milestone with 99.9% Pure Dysprosium Oxide Production

Energy Fuels has successfully produced 99.9% pure dysprosium oxide at its Utah mill, exceeding commercial specifications. The company plans to maintain a production rate of 2kg per week and aims to produce terbium oxide by Q4 2025. This achievement marks a significant milestone in establishing a non-Chinese rare earth oxide supply chain, with strong interest from magnet manufacturers and OEMs. Energy Fuels plans to construct commercial-scale separation capacity and begin production as early as Q4 2026.

Energy Fuels Inc. (NYSE American: UUUU | TSX: EFR) has made a significant stride in the development of a domestic rare earth supply chain by producing one kilogram of 99.9% pure dysprosium oxide at its White Mesa Mill in Utah. This achievement marks the first time a substantial pre-commercial quantity of high-purity dysprosium oxide has been produced on U.S. soil [1].

The milestone was accomplished using a demonstration-scale solvent extraction (SX) system designed and built entirely in-house by American chemical process engineers. This innovative system leverages the company's extensive experience with solvent extraction technology and builds upon their previous success in creating the first commercial-scale light rare earth separation system constructed in the United States since the 1980s [1].

Energy Fuels plans to maintain a production rate of 2 kilograms per week and aims to produce terbium oxide by the end of Q4 2025. The company also intends to construct commercial-scale separation capacity and begin production as early as Q4 2026. This development is expected to significantly reduce U.S. dependence on Chinese sources for these critical materials, enhancing national security and industrial competitiveness in high-technology manufacturing sectors [1].

The achievement comes at a crucial time when the demand for critical minerals is accelerating globally, driven by the energy transition and advanced defense systems. Dysprosium and terbium are essential components in high-performance permanent magnets used in electric vehicle motors, wind turbines, and defense systems [1].

Despite the technical capability to separate heavy rare earths, the United States faces a significant challenge: the lack of domestic heavy rare earth feedstock. Unlike light rare earths, heavy rare earths like dysprosium and terbium are not currently mined in substantial quantities within U.S. borders. This creates a critical vulnerability in the supply chain, as processors must still import heavy rare earth-bearing concentrate or intermediates from overseas sources [1].

Energy Fuels' Donald project in Victoria, Australia, jointly owned with Astron Corp. (ASX: ATR), represents a potential vertical integration strategy that could transform the company into an integrated producer with control over both mining and processing operations. The Donald Project is one of the richest known sources of heavy rare earths globally, with rare earth concentrate expected to contain approximately 0.37% terbium and 2.15% dysprosium (on a total rare earth oxide basis) [1].

At full planned Phase 1 production (approximately 7,100 tonnes of concentrate annually), the Donald Project could yield about 16 tonnes of terbium oxide and 92 tonnes of dysprosium oxide per year. These volumes would represent approximately 23% of U.S. terbium requirements and 34% of dysprosium needs, making it a substantial contributor to domestic supply [1].

The development of domestic heavy rare earth oxide production capabilities could significantly reduce U.S. dependence on Chinese supplies for these critical materials. This would strengthen national security, support the growth of high-tech manufacturing, and enhance the resilience of supply chains for electric vehicles, wind turbines, and defense applications [1].

References:
[1] https://discoveryalert.com.au/news/dysprosium-oxide-production-energy-fuels-milestone-2025/