Commercial-Scale 'Heavy' Rare Earth Plant Now Under Construction in Utah

Energy Fuels Inc. (EFR) has begun construction on a commercial-scale heavy rare earth oxide circuit at its White Mesa Mill in Utah. The project aims to produce 20 tonnes per annum of terbium and 120 tonnes per annum of dysprosium by the fourth quarter of 2027, with circuits for samarium, europium, and gadolinium expected to follow by the end of 2028.

The expansion carries a total capital expenditure of $104 million, funded through a conditional U.S. government loan commitment for the debt portion and working capital for the equity portion. The facility is sized to process monazite from the Donald Joint Venture, which is expected to yield 8,500–9,500 tonnes per annum starting in 2028, alongside other global feedstocks. A new MREC circuit will enable the simultaneous processing of rare earths and uranium.

The release connects the project to the pending acquisitions of Australian Strategic Materials (ASM) and Vacuumschmelze (VAC), with the goal of establishing a fully integrated Western rare earth supply chain.

Energy Fuels Inc. (EFR) has broken ground on a previously telegraphed capital project. The construction start was already indicated for July 2026 in a June 11, 2026 update. There is no new economic analysis, no acceleration of timelines, and no incremental secured offtake. The market had already priced in heavy REE development; the stock’s recent decline from $22 to $16 suggests the anticipation of continued execution drag rather than a surprise catalyst.

Energy Fuels Inc. (EFR) is the largest U.S. uranium producer and is transforming into a vertically integrated rare earth and critical materials platform. Its key processing asset is the White Mesa Mill in Utah, the only U.S. facility capable of separating monazite into light and heavy REE oxides, which also processes uranium. The company’s uranium properties include Pinyon Plain in Arizona, the La Sal complex in Utah, Nichols Ranch, Whirlwind, and Roca Honda.

For rare earth element feedstock, Energy Fuels holds the Donald Project in Australia, a 49% joint venture that is shovel-ready; Vara Mada in Madagascar, a 100% owned large heavy mineral sands deposit with monazite; Bahia in Brazil, which is 100% owned; and Dubbo in Australia, acquired via ASM.

Pending acquisitions include Australian Strategic Materials (ASM), which includes a metals and alloys plant in Korea and a planned U.S. facility, and Vacuumschmelze (VAC). VAC has existing magnet manufacturing operations in Germany, Finland, and Slovakia, as well as a growing facility in Sumter, South Carolina, with a 2,000 tpa capacity that is scalable to 12,000 tpa. The combined platform aims to control the full mine-to-magnet supply chain for rare earth permanent magnets.