Highlights

• Energy Fuels successfully produced high-purity neodymium-praseodymium oxide converted into commercial-grade rare earth permanent magnets.
• First verified mine-to-magnet production loop involving US-mined and processed rare earth oxides outside of China.
• Milestone demonstrates potential for Western rare earth autonomy with US monazite feedstock and allied-nation magnetization.

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Quality Digest reports that Energy Fuels Inc. has achieved a major milestone—its White Mesa Mill in Utah successfully produced high-purity neodymium-praseodymium (NdPr) oxide that’s now been converted into commercial-grade rare earth permanent magnets (REPMs) by South Korea’s largest drive-unit motor-core manufacturer—POSCO. The magnets passed rigorous QA/QC benchmarks and are qualified for EV and hybrid drive units sold globally.

See the Energy Fuels and POSCO deal (opens in a new tab) announced on March 17, 2025. In that deal, the U.S.-based Energy Fuels Inc. and POSCO International inked a Memorandum of Understanding aimed at creating one of the world’s first commercial rare earth magnet supply chains independent of China, linking Energy Fuels’ U.S. rare earth oxide (REO) production at its White Mesa Mill with POSCO’s global leadership in traction motor cores for electric and hybrid vehicles. Initial batches of NdPr oxide from Energy Fuels have already met POSCO’s technical standards, with larger-scale samples to follow for conversion into NdPr metal, alloy, and high-performance permanent magnets. Upon successful validation, the companies reported that at the time they could supply enough material for over 30,000 EVs by late 2025, marking a breakthrough in allied magnet sourcing for automakers in the U.S., EU, Japan, and South Korea. Is this a reality? We cannot be certain. The partnership underscores Energy Fuels’ ambition to build a traceable, low-cost, and geopolitically secure REE supply chain, supported by its expanding monazite feedstock base in the U.S., Brazil, Australia, and Madagascar. While still subject to definitive agreements, this collaboration signals a tangible step toward reshoring critical materials and reducing Western dependence on China for advanced magnet technologies.

So the overall piece via Quality Digest isn’t just a laboratory win; it’s among the first verified mine-to-magnet production loops involving U.S.-mined and processed REOs outside of China. That alone gives this announcement real industrial significance.

The Details that Matter

Energy Fuels’ NdPr oxide—sourced from Chemours’ monazite sands in Florida and Georgia (opens in a new tab)—was refined into 1.2 metric tonnes of oxide, yielding roughly 3 tonnes of magnets—enough to power about 1,500 electric vehicles. The report confirms the oxide meets performance specifications (45H-grade NdFeB) and is now qualified for commercial EV drive units produced in North America, Europe, Japan, and Korea.

These specifics align with Energy Fuels’ prior disclosures and DoD-supported supply-chain goals. The claim that drive units “are expected to be installed in new vehicles within months” appears credible given existing production timelines and MOU commitments.

Hype or Horizon?

While the milestone is real, some framing borders on promotional exuberance. The article suggests Energy Fuels is already “closing the loop” on a non-China REE supply chain—true in spirit, premature in scope. Full-scale independence would require domestic magnet manufacturing capacity, something still in its infancy in the U.S., though MP Materials, with a major infusion of capital, is moving in that direction.

Mark Chalmers’ statement that White Mesa will add “heavy REO capacity in 2026” is plausible but forward-looking—essentially a projection contingent on capital and permitting progress.

The Real Signal

For investors and policymakers, this event marks a proof of concept for eventual Western REE autonomy: U.S. monazite feedstock, U.S. oxide refining, and allied-nation magnetization. It demonstrates a functioning bilateral model—U.S. upstream + Asian midstream—bridging the gap until domestic magnet plants scale.

That’s no small feat. For the first time in decades, an EV magnet built from U.S.-refined REEs will soon roll off an assembly line—not stamped “Made in China.”

Citation: Quality Digest, “US Mined and Processed Rare Earths Approved for Use in EVs and Hybrids (opens in a new tab),” Oct. 7, 2025.

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