Highlights

• Energy Fuels and Vulcan Elements announce a Memorandum of Understanding (MOU) to develop a U.S.-based rare earth oxide and magnet production pipeline.
• The partnership aims to reduce U.S. dependence on China by creating the first integrated 'mine-to-magnet' domestic supply chain.
• Collaboration targets critical rare earth oxides for high-tech industries, including electric vehicles, defense systems, and renewable energy technologies.

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In a development aimed at reshaping America’s rare earth magnet supply chain, Energy Fuels Inc. (opens in a new tab) (NYSE American: UUUU; TSX: EFR) and Vulcan Elements (opens in a new tab) announced a Memorandum of Understanding (MOU) to build a domestic pipeline of high-purity rare earth oxides into U.S. magnet production. The collaboration highlights a growing trend: pairing upstream oxide producers with downstream magnet manufacturers to reduce reliance on China.

Key Details

• Supply Agreement: Energy Fuels will begin delivering separated NdPr (neodymium-praseodymium) and Dy (dysprosium) oxides in Q4 2025 for Vulcan’s validation. These oxides will be refined at the White Mesa Mill in Utah using mineral feedstock from Chemours mines in Georgia and Florida.
• Strategic Significance: If validated, the two firms plan to negotiate long-term supply deals for NdPr and Dy—critical raw materials for rare earth permanent magnets used in EVs, defense systems, AI infrastructure, and renewable energy technologies.
• Domestic Firsts: White Mesa is currently the only U.S. facility producing separated rare earth oxides. Vulcan Elements is already manufacturing magnets at its Durham, NC facility, making this one of the first integrated “mine-to-magnet” collaborations on U.S. soil.

NoteVulcan Elements is at the pilot, low-volume phase of magnet manufacturing. The company has demonstrated initial production capabilities and secured defense contracts, but commercial-scale operations are still forthcoming and dependent on scale-up capital and infrastructure buildup. They did just secure $60 million.

Implications

For investors, this tie-up represents one of the clearest moves yet to establish a closed-loop, U.S.-based magnet supply chain. If successful, it could mitigate national security risks tied to China’s dominance and meet the looming 2027 Department of Defense mandate for non-China magnet sourcing. The agreement also positions Vulcan as a rising U.S. magnet player and Energy Fuels as more than just a uranium producer, reinforcing its shift toward a diversified critical minerals strategy.

Unanswered Questions

• Scalability: How quickly can Energy Fuels move from pilot-scale heavy rare earth oxide production to full commercial volumes?
• Economics: What will be the cost competitiveness of U.S.-refined NdPr and Dy versus imports, especially in a price-sensitive EV supply chain?
• Policy Support: Will U.S. federal funding or a guaranteed offtake follow, similar to Pentagon support for MP Materials, to ensure commercial viability?
• Market Access: How much capacity can Vulcan realistically bring online, and will customers beyond defense (e.g., auto OEMs) adopt U.S.-made magnets at scale?

A reminder for the world’s leading magnet makers, take a look at the Rare Earth Exchanges Magnet Manufacturing Rankings just released on Monday, August 25, 2025. Unless a company is producing magnets at scale according to tailored specifications for numerous customers, it is not really making magnets for retail investors.

Outlook

This MOU represents an early yet significant step toward onshoring rare earth magnets, a critical supply chain chokepoint for both U.S. industry and defense. Investors should track validation milestones in Q4 2025, potential federal support, and whether the collaboration matures into a full long-term supply contract.

Source: CNW Newswire, “Energy Fuels and Vulcan Elements Join Forces to Advance U.S. Rare Earth Magnet Security,” Aug. 26, 2025.

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