Energy Fuels Begins U.S. Pilot Production of Heavy Rare Earth Oxides at White Mesa

Highlights

• Energy Fuels begins pilot-scale production of heavy rare earth element (HREE) oxides at White Mesa Mill.
• The White Mesa Mill is the only operational U.S. facility processing mined HREE ores.
• The company aims to produce dysprosium, terbium, and samarium oxides.
• Targeting full commercial-scale output by Q4 2026.
• The initiative challenges China’s dominance in critical magnet materials.
• The company remains in early stages with small production volumes.
• Significant financial challenges exist, requiring careful investor scrutiny.

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In a pivotal step toward reshoring America’s rare earth supply chain, Energy Fuels (opens in a new tab) (NYSE American: UUUU; TSX: EFR) has officially launched pilot-scale production of heavy rare earth element (HREE) oxides at its White Mesa Mill in Utah—the only operational facility in the U.S. currently processing mined HREE ores.

According to Mining Weekly’s (opens in a new tab) Mariaan Webb, the pilot facility is already producing dysprosium oxide at purities of ≥99.5%, with 99.9% expected. Terbium and samarium oxide production will follow, with full commercial-scale output targeted for Q4 2026. Importantly, White Mesa’s initial production is being achieved with only minor upgrades to its Phase 1 REE separation circuit, commissioned in April 2024.

President and CEO Mark Chalmers emphasized the strategic positioning: “Energy Fuels is in a unique position to produce the heavy rare earth oxides needed by other U.S. producers to make rare earth metals, alloys and magnets.”

The White Mesa program is sourcing feedstock from both existing U.S. materials and from Energy Fuels’ joint venture, the Donald project in Victoria, Australia, which is touted as one of the richest HREE deposits globally. Phase 1 concentrate output from Donald is projected to deliver enough dysprosium (92 t/y), terbium (16 t/y), and samarium (129 t/y) to cover 34%, 23%, and 250% of U.S. domestic demand, respectively. Phase 2 could increase that to 13,000 tonnes per year of concentrate.

Strategic Implications for Investors

This announcement affirms Energy Fuels’ ambition to anchor a North American HREE supply chain. However, retail investors should watch closely:

• Will U.S. downstream magnet producers step up to match this upstream expansion?
• Can Energy Fuels maintain low-cost separation versus entrenched Chinese players?
• What geopolitical or permitting delays might hinder the ramp-up from Donald, Toliara (Madagascar), or Bahia (Brazil)?

If successful, Energy Fuels would break new ground as the only commercial U.S. producer of HREEs from viable ore, challenging China’s longstanding dominance in critical magnet materials. The company has not yet disclosed pricing forecasts or offtake partners, but this milestone will undoubtedly place them on the radar of defense, EV, and semiconductor supply chain strategists.

The Company–Analysis: Energy Fuels (UUUU) — Pilot-Stage Promise or Valuation Stretch?

Energy Fuels Inc. (NYSE American: UUUU) has made headlines with its July 2025 announcement that it has begun pilot-scale production of heavy rare earth element (HREE) oxides at its White Mesa Mill in Utah. This marks a significant technical milestone—White Mesa is the only U.S.-based facility currently processing mined HREE ores, including dysprosium and terbium, key inputs for permanent magnets in electric vehicles and defense systems.

However, while the announcement may excite strategic policymakers and resource security advocates, retail investors should tread with caution: this is pilot production, not commercial scale. As of now, the volumes are small—just 1 kg of dysprosium expected by August—and Energy Fuels remains at least 12–18 months away from proving it can scale and generate positive EBITDA from this effort.

Financially, Energy Fuels presents a high-risk, high-theory proposition. Despite a $1.75 billion market capitalization, the company reported just $69.6 million in trailing twelve-month revenue, a 33.5% year-over-year decline. With a substantial -112% profit margin, -$71 million in operating cash burn, and -$84 million in free cash flow, Energy Fuels is far from profitability. Its enterprise value-to-revenue ratio of 21 and negative EBITDA suggest a valuation detached from near-term fundamentals. On the upside, the balance sheet is solid, with $162 million in cash and no reported debt. The company boasts a current ratio of 6.08, providing a liquidity cushion to continue advancing toward full-scale operations at White Mesa and the Donald JV in Australia.

Retail investors should focus on three near-term variables:

1. Proof of economic viability and throughput of its rare earth separation processes, especially for HREEs;
2. Visibility on commercial offtake agreements—none yet disclosed, and;
3. Timing and permitting risks for the Donald, Toliara, and Bahia projects.

Given the elevated short interest (15.2% of float), the market is signaling skepticism. While Energy Fuels may indeed help build the ex-China HREE supply chain in North America, the current valuation assumes success well before it’s earned. Caution and close monitoring of pilot-to-scale progression are warranted.

Top 5 Institutional Shareholders of Energy Fuels

1. Alps Advisors Inc.
   As of March 31, 2025, Alps Advisors Inc. holds the largest institutional stake in Energy Fuels, owning approximately 15.93 million shares, which represents 8.02% of total outstanding shares. Their position is valued at $145.8 million, indicating high conviction—likely through thematic ETFs focused on critical minerals or nuclear fuel supply chains. ALPS Advisors, Inc. is an investment management company, operating as a subsidiary of SS&C Technologies (opens in a new tab). They offer a range of investment solutions, including exchange-traded funds (ETFs) (opens in a new tab), mutual funds (opens in a new tab), and variable insurance trusts (VITs) (opens in a new tab). The firm focuses on active management and security selection, aiming to deliver strong investment outcomes, particularly in volatile markets. ALPS Advisors is headquartered in Denver, Colorado, with additional locations across the US. 
   
2. Mirae Asset Global ETFs Holdings Ltd. (opens in a new tab)
   

   This Korean investment firm, known for managing Global X ETFs, holds 12.67 million shares (6.38% ownership), worth $115.9 million. Their stake aligns with Global X’s uranium and energy transition ETF exposure, underscoring crossover interest from nuclear and electrification plays into the rare earth arena. 12th largest ETF provider worldwide.

3. BlackRock Inc. (opens in a new tab)
   

   One of the world’s largest asset managers, BlackRock holds 11.19 million shares (5.63%) valued at $102.4 million. Their involvement is a strong endorsement of Energy Fuels’ thematic positioning in energy security, uranium, and critical mineral independence.

4. Ameriprise Financial, Inc (opens in a new tab).
   

   With 8.79 million shares or 4.43% ownership valued at $80.4 million, Ameriprise’s position suggests growing institutional appetite for companies that bridge the uranium and rare earths markets. This firm’s diversified fund base adds stability to UUUU’s shareholder structure.

5. Vanguard Group Inc. (opens in a new tab)
   

   Vanguard owns 7.46 million shares (3.75%) worth $68.2 million. As a long-term, index-driven investor, Vanguard’s position likely reflects inclusion in small- and mid-cap or thematic ESG indices tied to U.S.-based critical minerals development.

Noteworthy Insight

Energy Fuels’ largest shareholders are ETF-heavy institutions with strong exposure to uranium, nuclear energy, and strategic materials—SPROTT Uranium Miners ETF alone holds nearly 6.93% of shares. While these positions suggest confidence in UUUU’s long-term relevance, they also expose the stock to thematic fund flows and commodity price sentiment swings, especially given the lack of earnings and early-stage HREE production.

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