HOUSTON, June 18th (Argus) - Energy Fuels, a key materials developer in the United States, has received a conditional $725 million loan from the Department of Defense to expand its processing capacity for critical minerals and build a facility for rare earth metals and alloys.
The company said today that the potential financing will support Energy Fuels' processing of rare earth elements and the infrastructure and capabilities for developing other critical materials.
According to the company, the loan awaits further due diligence, the finalization of agreements, and approval.
Energy Fuels is developing three heavy mineral sand projects: the fully-owned Madagascar Vara Mada project and the Brazil Bahia project, as well as the Australian Donald project with a 49% equity interest. The company's existing White Mesa mill in Utah will process uranium, vanadium, and rare earths after operation.
The first phase of the factory's project will handle up to 10,000 metric tons per year of monazite concentrate, 1,000 tons per year of praseodymium-neodymium oxide, and concentrates containing samarium and other heavy rare earths.
Energy Fuels is installing equipment to process mixed rare earth carbonates for light and heavy rare earths to produce rare earth oxides, with planned commercial production in mid-2027.
The second phase of the White Mesa mill project will increase the existing capacity by 5,513 tons per year of praseodymium-neodymium, 48 tons per year of terbium, 165 tons per year of dysprosium, and 748 tons per year of samarium and other heavy rare earth concentrates.
The capital cost of the second phase is estimated at $419 million, and the operating cost is $29.39 per kilogram of praseodymium-neodymium. The raw materials will come from Vara Mada.
Through the acquisition of Australian Strategic Materials Company in January 2026, the company plans to build an American metal factory with an initial annual capacity of 2,000 tons of alloy and the possibility of expanding to 4,000 tons per year.
The factory will be finally approved before 2026 and then undergo a two-year construction period.
