Energy Fuels' U.S. Dysprosium Oxide Production Breakthrough: A Game-Changer for Rare Earth Element Supplies?

Energy Fuels Inc. has achieved a breakthrough in U.S. dysprosium oxide production at its White Mesa Mill in Utah, marking a U.S. first in both purity and scale disclosure. The milestone highlights the company's growing capabilities in providing rare earth elements from a fully non-Chinese supply chain, with magnet manufacturers expressing strong interest in its dysprosium oxide samples. This progress reinforces Energy Fuels' investment narrative, but ongoing limitations in guaranteed feedstock supply remain a pivotal factor for scaling rare earth revenues and margins in the short term.

Energy Fuels Inc. (NYSE: UUUU) (TSX: EFR), a leading U.S. producer of uranium, rare earths, and critical minerals, has successfully produced its first kilogram of dysprosium (Dy) oxide at pilot scale at the White Mesa Mill in Utah. The company achieved a purity of 99.9% Dy, exceeding the 99.5% commercial specification. The Mill expects to continue producing dysprosium oxide at a rate of two kilograms per week [1].

This achievement marks a significant milestone for the U.S. rare earth element (REE) industry, as Energy Fuels is believed to be the first U.S. company to both produce high-purity Dy oxide and publicly disclose actual production volumes and purities. The dysprosium oxide is being produced from monazite mined in Florida and Georgia, USA, demonstrating the viability of Energy Fuels' non-Chinese supply chain [2].

The White Mesa Mill's production capabilities have garnered strong interest from multiple magnet manufacturers and original equipment manufacturers (OEMs), who have expressed their intent to validate the samples. The purity and quantity of Energy Fuels' Dy oxide production are unmatched in the United States at this time, highlighting the Mill's world-class REE production capabilities [1].

Energy Fuels plans to continue pilot-scale production until approximately 15 kilograms of Dy oxide are produced. Following this, the company intends to produce high-purity terbium (Tb) oxide, with the first samples expected by Q4-2025. The company also aims to construct and commission commercial-scale Dy, Tb, and potentially other 'heavy' REE separation capacity at the White Mesa Mill by Q4 2026 [1].

The success of this pilot project underscores Energy Fuels' growing capabilities in delivering critical minerals to the United States. However, the company's investment narrative is tempered by ongoing limitations in guaranteed feedstock supply, which could impact the scaling of rare earth revenues and margins in the short term [1].

References:
[1] https://www.marketscreener.com/news/energy-fuels-inc-successfully-produces-first-kilogram-of-99-9-purity-dysprosium-oxide-at-its-white-ce7c51d3df8ff025
[2] https://www.marketscreener.com/news/energy-fuels-inc-successfully-produces-first-kilogram-of-99-9-purity-dysprosium-oxide-at-its-white-ce7c50dad18df224