Energy Fuels begins pilot production of heavy rare earth oxides

DENVER - Energy Fuels Inc. (NYSE American:UUUU) (TSX:EFR), a $357 million market cap rare earth elements company with impressive 100% gross margins, has commenced pilot-scale production of heavy rare earth element (HREE) oxides at its White Mesa Mill in Utah, according to a press release statement issued Thursday. InvestingPro data shows the company maintains stable operations with notably low price volatility.

The company is currently producing dysprosium oxide at a minimum purity of 99.5% and expects to complete its first kilogram within 30 days. Energy Fuels plans to continue pilot production until September 2025, targeting approximately 15 kilograms of dysprosium oxide before transitioning to terbium production in October. With last twelve months revenue of $52.89 million and a P/E ratio of 21.46, the company shows promising financial metrics. For detailed financial analysis and additional insights, consider subscribing to InvestingPro.

If pilot operations prove successful, Energy Fuels could begin commercial-scale production of dysprosium, terbium, and samarium oxides as early as Q4 2026 using existing feed sources. The company states it is currently the only U.S. producer creating separated HREE oxides from mined ores at a commercial facility.

The company also highlighted its Donald Project in Australia, which it describes as a permitted heavy mineral sand and rare earth development. If a production decision is made in 2025, Energy Fuels indicates commercial production from this source could begin by Q4 2027.

Mark Chalmers, President and CEO of Energy Fuels, said the company has already demonstrated its ability to separate neodymium-praseodymium on a commercial scale through its Phase 1 rare earth separations circuit commissioned in April 2024. According to InvestingPro analysis, the company remains profitable over the last twelve months, though investors should note that short-term obligations currently exceed liquid assets.

Heavy rare earth elements, particularly dysprosium and terbium, are used in rare earth magnets to enable operation at higher temperatures. These elements are considered critical materials for various high-technology and clean energy applications.

Energy Fuels also mentioned it is developing additional heavy mineral sands projects in Madagascar and Brazil, targeted to begin operations in 2028 and 2029 respectively, subject to regulatory approvals.

In other recent news, Energy Fuels Inc. reported mining 638,700 pounds of uranium from its Pinyon Plain mine in Arizona during the second quarter of 2025. The company sold 50,000 pounds of uranium on the spot market at an average price of $77.00 per pound and plans to sell additional quantities in the third and fourth quarters under existing utility contracts. Energy Fuels also announced advancements in rare earth oxide production, developing technology to produce six critical rare earth oxides at scale. This development aligns with a recent executive order by President Trump initiating a Section 232 investigation into the import of processed critical minerals. The company’s White Mesa Mill in Utah is set to expand its processing capabilities to include various rare earth oxides. Energy Fuels expressed confidence in addressing gaps identified in the executive order, citing their established infrastructure and technological expertise. The company has been enhancing its rare earth element production capabilities since 2020 and aims to process up to 60,000 tonnes of monazite per year in the future. These developments highlight Energy Fuels’ strategic positioning in the U.S. market amid a focus on securing critical mineral supply chains.

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