A significant technological milestone has been reached by Energy Fuels, advancing the company’s position in establishing domestic supply chains for critical materials. The Colorado-based uranium and rare earths producer announced that a South Korean permanent magnet manufacturer has formally qualified its U.S.-produced dysprosium oxide, marking a strategic breakthrough.
Securing a First-Mover Advantage in the U.S.
Energy Fuels confirmed that the dysprosium oxide manufactured at its White Mesa Mill in Utah meets all purity and quality specifications required for downstream permanent magnet manufacturing. The material, with a purity of 99.9%, substantially exceeds the 99.5% threshold typically mandated for automotive applications. This achievement makes Energy Fuels the first American company to secure certification for both “light” and “heavy” rare earth elements destined for magnet production.
The timing of this development is particularly advantageous. In April 2025, China imposed export controls on seven rare earth elements, including dysprosium, terbium, and samarium. These restrictions remain in effect, creating strategic opportunities for alternative suppliers operating outside of China’s dominant supply network.
Key data points from the initial pilot program include:
* Production of 29 kilograms of high-purity dysprosium oxide.
* Attained purity levels of 99.9%.
* Commencement of terbium oxide pilot production within days.
* A target for commercial production launch in the fourth quarter of 2026.
Should investors sell immediately? Or is it worth buying Energy Fuels?
Financial Strength Supports Capacity Expansion
The company is actively progressing with the construction of commercial-scale infrastructure at the White Mesa Mill. Planned annual capacity is set to reach 48 tonnes of dysprosium oxide and 14 tonnes of terbium oxide. This expansion also encompasses the potential future production of samarium oxide, a crucial component in samarium-cobalt magnets which are indispensable for defense applications such as radar systems, sonar, guided missiles, and jet engines.
A solid financial foundation underpins this growth. In October 2025, Energy Fuels bolstered its balance sheet by placing convertible notes worth $700 million, raising its total working capital to nearly $1 billion. These notes carry a coupon of 0.75% and have an effective conversion price of $30.70 per share.
Uranium Operations Remain the Core Business
While diversifying into rare earths, Energy Fuels continues to regard uranium as its central operation. From 2017 through 2023, the company was responsible for producing two-thirds of all uranium in the United States. It holds proven and probable uranium resources exceeding 81 million pounds. The White Mesa Mill represents the nation’s sole fully licensed and conventional uranium processing facility—a piece of infrastructure that would take competitors years to replicate.
As of September 30, 2025, the firm reported working capital of $298.5 million, which included $94 million in cash and $141.3 million in marketable securities. Prior to the convertible notes issuance, the company carried no debt. By establishing these new production lines for heavy rare earth elements, Energy Fuels is entering a market historically controlled almost entirely by Chinese suppliers, coinciding with rising demand from both the defense and electric mobility sectors.
Ad
Energy Fuels Stock: Buy or Sell?! New Energy Fuels Analysis from December 22 delivers the answer:
The latest Energy Fuels figures speak for themselves: Urgent action needed for Energy Fuels investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from December 22.
Energy Fuels: Buy or sell? Read more here...
