NYSE American- and TSX-listed Energy Fuels has begun producing heavy rare earth element (HREE) oxides at its White Mesa mill in Utah at pilot scale, with plans in place to ramp up to full-scale production as soon as the fourth quarter of 2026.

White Mesa is the only US-based commercial facility currently generating HREE from mined ores. 

The pilot programme is already generating dysprosium oxide with purities of at least 99.5%, potentially reaching 99.9%. Production of terbium and samarium oxides is expected to follow, with commercial-scale volumes planned from both existing feedstocks and Energy Fuels’ Donald project in Australia.

“Energy Fuels is in a unique position to produce the heavy rare earth oxides needed by other US producers to make rare earth metals, alloys and magnets,” said president and CEO Mark Chalmers. “Piloting of our HREE production is going very well, with our first kilogramme of dysprosium oxides expected shortly.”

The company aims to complete its first kilogramme of dysprosium oxide within 30 days, and to produce about 15 kg by the end of September. Terbium oxide production is expected to begin in October, with one kilogramme projected by the end of November, followed by samarium oxide in January 2026.

With only minor modifications to its existing Phase 1 rare earth separation circuit, Energy Fuels believes it could begin commercial HREE oxide production at White Mesa by the fourth quarter of 2026, and from the Donald project in Victoria, Australia by late 2027, pending a production decision this year.

“The company has demonstrated its ability to separate neodymium and praseodymiumd on a commercial scale through the commissioning of its Phase 1 REE separations circuit at the Mill in April 2024,” Chalmers added. 

The Donald Project, a joint venture in Victoria, contains the rare earth-bearing minerals monazite and xenotime and is permitted for development. It is described by the company as “one of the richest deposits of HREEs in the world".

The project's planned Phase 1 output of 7 100 t/y of rare earth element concentrate would contain 129 t/y of samarium, 16 t/y of terbium and 92 t/y of dysprosium – equivalent to 250%, 23%, and 34% of current yearly US demand, respectively. Phase 2 could raise output to 13 000 t/y.

The company also highlighted two longer-term prospects: the Toliara project in Madagascar, which could begin production as early as 2028 pending government approvals, and the Bahia project in Brazil, expected to follow in 2029.

“The company's HREE production would represent the only commercial scale HREE production in the US from an economically viable feedstock and would position Energy Fuels to supply US–based manufacturers with the heavy rare earth oxides required to make rare earth metals, alloys and permanent magnets," said Chalmers.