Energy Fuels Achieves Milestone in US Rare Earth Supply Chain for EVs

Energy Fuels (NYSEAMERICAN:UUUU,TSX:EFR) announced that its high-purity neodymium-praseodymium (NdPr) oxide is now qualified for use in permanent magnets used drive units for electric vehicles (EVs) and hybrid EVs.

The NdPr oxide, which was processed at Energy Fuel's White Mesa mill in Utah, was transformed into commercial-scale magnets by South Korea's leading manufacturer of drive unit motor cores.

The company announced its NdPr oxide also meets all quality assurance and control benchmarks, paving the way for its use in EV drive unit motors sold globally.

Creating a 'mine-to-magnet' US supply chain

The successful production of rare earth permanent magnets from Energy Fuels' NdPr oxide represents a strategic milestone in the company's goal to build a "mine-to-magnet" supply chain within the United States, leveraging rare earth oxides produced domestically to reduce reliance on China.

The monazite concentrate used as feedstock for White Mesa was supplied by the Chemours Company's heavy mineral sands operations in Florida and Georgia.

Mark S. Chalmers, CEO of Energy Fuels, emphasized the significance of this achievement in restoring domestic critical mineral supply chains. He stated, "Commercial validation of our rare earth oxides at scale is a significant triumph for Energy Fuels, proving we have the capacity and expertise to produce rare earth materials that meet both commercial and defense requirements."

The 1.2 metric tons of NdPr oxide Energy Fuels supplied were processed into approximately 3 metric tons of rare earth permanent magnets, enough to power about 1,500 new electric and hybrid vehicles. Chalmers stated that drive units using these magnets should be integrated into new vehicles available on the market within the coming months.

Energy Fuels plans to develop heavy rare earth oxide capacity by 2026 at its White Mesa mill, which Chalmers said further closes the loop on a non-China supply chain. This initiative includes pilot production of dysprosium oxide, another crucial component for high-performance magnets.

Energy Fuels also processes its domestically produced uranium at the White Mesa mill.

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