Energy Fuels' NdPr oxide qualifies for use in EV drive unit motors.

Energy Fuels, a US-based energy company, has received confirmation that its high-purity NdPr oxide has been qualified for use in rare earth permanent magnets for electric vehicle motors. The NdPr oxide was mined in Florida and Georgia and processed in Utah. The magnets have passed quality assurance and control benchmarks for use in EV drive unit motors sold to major automotive manufacturers.

Energy Fuels (NYSE American: UUUU) has achieved a significant milestone in establishing a U.S.-based rare earth supply chain. The company's high-purity neodymium-praseodymium (NdPr) oxide, mined in Florida and Georgia and processed at its White Mesa Mill in Utah, has been successfully qualified for use in rare earth permanent magnets (REPMs) for electric vehicle (EV) and hybrid vehicle drive unit motors [1].

The 1.2 metric tonnes of NdPr oxide was converted into 3.0 metric tonnes of REPMs, sufficient to power approximately 1,500 electric and hybrid vehicles. The materials were validated by South Korea's largest manufacturer of drive unit motor cores and are expected to be installed in vehicles within months [1].

This breakthrough represents a crucial step in developing a mine-to-magnet supply chain independent of China. Energy Fuels also plans to construct heavy rare earth oxide capacity in 2026 at its White Mesa Mill, which is currently the only North American facility licensed to produce high-purity rare earth oxides from monazite [1].

The global rare earths sector has been thrust into the geopolitical spotlight due to escalating US-China trade tensions and tightening global regulations. In May 2024, the former US administration imposed a 25 percent tariff on Chinese rare earth magnets starting in 2026, marking the first time these components have been targeted under Section 301 [2]. This move highlights the strategic role of rare earths in clean energy and defense, and underscores the need for a diversified supply chain [2].

Despite these challenges, demand for permanent magnets is growing, driven by the increasing adoption of EVs, clean energy, and defense technologies. Energy Fuels' success in qualifying its NdPr oxide for use in REPMs positions it well to capture a share of this growing market [1].

References:
[1] https://www.stocktitan.net/news/UUUU/u-s-mined-and-processed-rare-earths-successfully-manufactured-into-s0vo9l50ilsu.html
[2] https://investingnews.com/top-rare-earth-stocks/