Energy Fuels, Vulcan Elements sign MOU for US rare earth magnet supply chain.

Energy Fuels Inc. and Vulcan Elements have signed a Memorandum of Understanding to create a domestic supply chain for rare earth magnets in the US, independent of China. Energy Fuels will supply Vulcan with high-purity rare earth oxides, refined in Utah from minerals produced in Georgia and Florida, for the production of rare earth permanent magnets in the US. The partnership aims to strengthen the US's resilience to supply chain disruptions and promote domestic rare earth magnet production.

Energy Fuels Inc. (NYSE: UUUU) and Vulcan Elements have signed a Memorandum of Understanding (MOU) to create a domestic supply chain for rare earth magnets in the United States, independent of China. This strategic partnership aims to strengthen the U.S.'s resilience to supply chain disruptions and promote domestic rare earth magnet production.

Under the agreement, Energy Fuels will supply Vulcan with high-purity rare earth oxides, refined at its White Mesa Mill in Utah from minerals produced in Georgia and Florida. The collaboration focuses on supplying crucial neodymium-praseodymium (NdPr) and dysprosium (Dy) oxides, essential for manufacturing rare earth magnets used in electric vehicles, defense systems, and advanced technologies.

Energy Fuels' White Mesa Mill, the only U.S. facility capable of processing monazite mineral concentrates into separated rare earth oxides, will process the materials. Following validation, both companies plan to negotiate long-term supply agreements. This partnership represents a significant milestone in establishing a complete domestic rare earth supply chain in the United States.

Currently, China controls approximately 85% of global rare earth processing and 90% of the magnet manufacturing market. These magnets are essential components in critical technologies including defense systems, electric vehicles, AI data centers, and semiconductor fabrication - all sectors where supply chain security has become a national priority.

The partnership aligns perfectly with ongoing governmental efforts to secure domestic supply chains for critical minerals. Energy Fuels has already demonstrated its capability by producing commercial-scale NdPr oxide in 2024 and is developing heavy rare earth oxide production capabilities. Monazite from heavy mineral sand operations is an ideal feedstock due to its higher concentrations of valuable heavy rare earths like dysprosium and terbium compared to other mineral sources.

Energy Fuels is planning to install large-scale dysprosium, terbium, and potentially other "heavy" rare earth oxide production capacity at its White Mesa Mill in Utah by Q4-2026. The company successfully produced its first kilogram of dysprosium (Dy) oxide at pilot scale at the White Mesa Mill in Utah, achieving a purity of 99.9% Dy.

This collaboration positions both companies to benefit from policy support and funding initiatives aimed at reducing dependency on foreign sources for these strategic materials. Energy Fuels' high purity Dy oxide production is a major leap toward securing a U.S. supply of 'heavy' rare earth oxides for a variety of commercial and defense uses.

References:
[1] https://www.stocktitan.net/news/UUUU/energy-fuels-and-vulcan-elements-join-forces-to-advance-u-s-rare-iyz9ay6vrlau.html
[2] https://investors.energyfuels.com/2025-08-21-Energy-Fuels-Successfully-Produces-First-Kilogram-of-99-9-Purity-Dysprosium-Oxide-at-its-White-Mesa-Mill-in-Utah-on-Track-to-Commence-Terbium-Production-in-Q4-2025