Energy Fuels to Supply Vulcan Elements with High-Purity Rare Earth Oxides under MOU

Energy Fuels has entered into a Memorandum of Understanding (MOU) with Vulcan Elements to supply high-purity rare earth oxides for the production of rare earth permanent magnets in the US. The MOU covers the supply of "light" and "heavy" rare earth oxides, sourced from outside China, to support Vulcan Elements' manufacturing operations in the US. The agreement aims to reduce the country's dependence on Chinese rare earth imports and promote domestic production of rare earth permanent magnets.

In a significant move to bolster domestic production and reduce reliance on Chinese imports, Energy Fuels has entered into a Memorandum of Understanding (MOU) with Vulcan Elements. The agreement, signed on July 2, 2025, outlines the supply of high-purity rare earth oxides for the production of rare earth permanent magnets in the United States. The MOU covers both "light" and "heavy" rare earth oxides, sourced from outside China, aiming to support Vulcan Elements' manufacturing operations in the U.S. [1]

This partnership is a strategic step in the ongoing efforts to diversify the global supply of rare earth elements (REEs), which are crucial for modern technology manufacturing. China's dominance in the REE supply chain, accounting for approximately 85% of global processing capacity, has raised national security concerns for Western economies [1]. The MOU between Energy Fuels and Vulcan Elements underscores the push for alternative supply sources and the development of competitive domestic supply chains.

Vulcan Elements, with its innovative processing technologies, aims to challenge Chinese market dominance through price competitiveness. The company's partnership with ReElement Technologies, which employs chromatography for rare earth separation, represents a significant technological shift in the industry. This approach promises reduced chemical consumption, lower energy usage, and less waste generation, potentially reshaping the economics of REE processing [1].

The MOU with Energy Fuels aligns with Vulcan Elements' strategy to position itself as a key player in the North American rare earth magnet manufacturing market. By securing a steady supply of high-purity REE oxides, Vulcan Elements can enhance its production capabilities, reduce dependence on international shipping and trade policies, and contribute to the broader goal of domestic supply security.

The agreement also reflects a growing trend of strategic alliances and partnerships aimed at building competitive supply chains for critical minerals. As the world accelerates toward electrification and renewable energy, the demand for REEs is expected to grow, making initiatives like this MOU increasingly important.

References:
[1] https://discoveryalert.com.au/news/rare-earth-supply-diversification-2025-alternative-sources/