Energy Fuels Gains Key Approval for Donald Rare Earth Project-Strategic U.S.-Australia Supply Chain Integration Inches Forward

Highlights

• Energy Fuels receives final Work Plan approval for the Donald Rare Earth and Mineral Sand Project in Victoria, Australia
• Project aims to produce critical rare earth oxides essential for:
  • Permanent magnets
  • Defense systems
  • Electric vehicles

  by 2026

• Strategic initiative to develop a non-Chinese rare earth supply chain
• Potential for 14,000 tons of rare earth oxide production

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In a significant development for the rare earth supply chain outside China, Energy Fuels Inc. has announced that the Government of Victoria has approved the final Work Plan for construction and operations at the Donald Rare Earth and Mineral Sand Project, located in the Wimmera region of Australia. The project is being advanced through a joint venture with Astron Corporation, and now has the green light to move toward commercial development.

The Donald Project is positioned as one of the most advanced and scalable rare earth mineral sand ventures in the world. Energy Fuels aims to process its concentrate at the company’s White Mesa Mill in Utah (opens in a new tab)—the only U.S. facility licensed and currently operating to process both uranium and rare earths. Projected outputs include NdPr, Dy, Tb, and potentially Sm oxides—materials essential to permanent magnets, defense systems, and electric vehicles.

Under the JV terms, Energy Fuels may invest AU$183 million (US$119M) and issue US$17.5 million in shares to earn a 49% interest. The Donald Project will supply 100% of its rare earth concentrate to Energy Fuels, while other heavy minerals—titanium and zircon—will be marketed by Astron.

Phase 1 operations are expected as early as 2026, delivering 7,000–8,000 metric tons of concentrate per year—equivalent to 4,700 tons of total RE oxides, including nearly 1,000 tons of NdPr oxide. A Phase 2 expansion could push REE output to 14,000 tons, matching the White Mesa Mill’s long-term target of 60,000 tons of RE concentrate per year.

CEO Mark Chalmers framed the approval as “strategically vital,” citing the project’s unique mix of light, mid, and heavy REEs—including xenotime-rich concentrate, which enhances flexibility in critical oxide production. Notably, xenotime contains heavy rare earths like dysprosium and terbium, which are rare and under Chinese control globally. Energy Fuels intends to process both monazite and xenotime streams at its mill, reinforcing its ambition to be the West’s most versatile REE processor.

A final investment decision is expected by late 2025, with construction potentially starting within weeks. Acceleration is possible with U.S. or Australian government support, particularly as both countries have identified rare earth independence as a national security imperative.

Rare Earth Exchanges™ Analysis

This is a meaningful milestone in Energy Fuels' transformation from a uranium-centric company into a vertically integrated REE processing powerhouse. By securing the Donald Project's regulatory approval, Energy Fuels strengthens a non-Chinese source-to-separation chain, which—if realized—could offset critical magnet material dependency on China. Importantly, the inclusion of xenotime introduces heavy REEs into the U.S. pipeline, where there are currently zero commercial-scale domestic sources.

However, several open questions remain:

• The Phase 1 volume (990 tons of NdPr/year) is small relative to total U.S. demand projections.
• The final investment decision and financing strategy—especially under high inflation and capex risk—remain outstanding.
• The lack of apparent downstream magnet-making capacity in the U.S. continues to be a consideration for risk

Still, Energy Fuels is executing one of the most materially integrated REE strategies in the Western Hemisphere, with processing capacity, ore feed agreements, and scalable infrastructure in motion.

Rare Earth Exchanges™ Bias Meter™

Source	Bias Rating	Justification
Energy Fuels Press Release	Promotional Optimism	Highlights scale and strategic alignment, but omits financing and offtake risks
REEx Analysis	Strategic Realism	Acknowledges major milestone, while flagging downstream and financing gaps
Geopolitical Framing	Bipartisan Priority	Emphasizes U.S.-Australia alignment in line with allied critical minerals policy

Bottom Line: The Donald Project's approval is a strategic step forward, but the real test lies ahead: financing, construction, and proving Western capacity to deliver from pit to oxide to magnet—without China.