Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR), a leading U.S. producer of rare earth elements, uranium, and other critical materials, announced that its terbium (Tb) oxide has successfully passed all qualifications for use by one of the world's largest manufacturers of rare earth permanent magnets outside China. The Japan-based manufacturer confirmed that Tb oxide produced at Energy Fuels' White Mesa Mill in Utah meets its specifications and is approved for commercial rare earth permanent magnet production with no further qualification or validation required.
Terbium, which improves the heat resistance and performance of high-strength NdFeB permanent magnets, currently commands a market price of approximately $5.5 million per tonne, according to Benchmark Mineral Intelligence. This qualification follows Energy Fuels' previous announcements that its neodymium-praseodymium (NdPr) and dysprosium (Dy) oxides also passed qualifications for rare earth permanent magnet manufacturing. Together, these milestones position Energy Fuels as a key supplier of critical magnet metals outside China.
The significance of this development lies in the growing demand for rare earth permanent magnets, which are essential components in electric vehicles, wind turbines, and various electronics. Currently, China dominates the global supply chain for these materials, controlling over 90% of rare earth magnet production. By securing a qualified source of terbium oxide from a U.S. facility, Energy Fuels is helping to diversify the supply chain and reduce Western dependence on Chinese exports. This is particularly important as governments and companies seek to secure reliable and ethical sources of critical minerals.
Upon closing of its pending acquisitions of Australian Strategic Materials (ASM) and Vacuumschmelze (VAC), Energy Fuels expects to become the leading vertically integrated "mine-to-rare earth permanent magnet" producer in the U.S. and Europe. The company plans to use NdPr, Tb, and Dy oxides produced at the White Mesa Mill as key components of its supply chain, further strengthening its position in the market. These acquisitions are expected to provide Energy Fuels with additional processing capabilities and access to magnet manufacturing technologies, enabling it to serve customers across the automotive, defense, and renewable energy sectors.
Energy Fuels is already a major player in the uranium market, being the top U.S. producer of natural uranium concentrate. The company owns the only fully licensed conventional uranium mill in the U.S., the White Mesa Mill, where it also processes rare earth elements and evaluates medical isotope recovery for cancer therapies. In addition, Energy Fuels is developing three heavy mineral sands and rare earth projects: the Vara Mada Project in Madagascar, the Bahia Project in Brazil, and the Donald Project in Australia (through a joint venture with Astron Limited). These projects aim to provide additional sources of rare earth elements and other critical minerals.
The qualification of terbium oxide is a testament to Energy Fuels' commitment to advancing the domestic production of critical materials. As the world transitions to cleaner energy technologies, the demand for rare earth magnets is expected to soar. Energy Fuels is well-positioned to meet this demand and help build a resilient supply chain for the United States and its allies.
