Energy Fuels Inc. announced that its White Mesa Mill in Utah has produced the first kilogram of 99.9‑% pure terbium oxide, a heavy rare earth element used in high‑performance permanent magnets for electric vehicles, drones, robotics and defense systems. The production, achieved at pilot scale, marks the first U.S. primary production of this material in decades and the first time a U.S. company has publicly disclosed both the volume and purity of a high‑purity terbium oxide derived from a primary mineral feedstock.
The terbium oxide was produced from monazite ore sourced from U.S. deposits in Florida and Georgia. Energy Fuels plans to maintain a production rate of approximately one kilogram per week in its existing pilot circuit, with a commercial production line slated to become operational in 2027 and a Phase 2 expansion targeted for 2029. The company’s CEO, Mark Chalmers, said, "This success proves we can process and produce high purity 'heavy' rare earth oxides economically and at scale in the U.S."
This milestone is strategically significant for the U.S. critical‑materials supply chain. Terbium, along with dysprosium, is essential for high‑temperature magnets that are increasingly demanded by the electric‑vehicle and defense sectors. By demonstrating domestic production capability, Energy Fuels reduces U.S. reliance on foreign sources—particularly China, which imposes export controls on several heavy rare earths—and strengthens national security and technological competitiveness.
Financially, Energy Fuels has faced challenges in recent periods. In Q4 2025 the company reported a net loss of 9 cents per share and revenue of $27.1 million, a 32% decline from the prior year, despite a 55.4% revenue growth over the past three years. The full‑year 2025 loss rose to $86 million, up from $47 million in 2024, while gross margin remained at 20.58% amid negative net and operating margins of –129.92% and –153.19%, respectively. Management attributes the losses to higher operating costs from expanded global operations, increased SG&A expenses, non‑cash write‑downs, and lower uranium spot prices.
Despite these headwinds, the company’s rare‑earth expansion is viewed as a long‑term value driver. Chalmers noted that 2025 was a "breakout year" for Energy Fuels, citing operational, ramp‑up and growth milestones that set the stage for future cash‑flow generation and competitive advantage in the critical‑materials space. He also highlighted the well‑timed performance of the uranium segment, noting that domestic demand for uranium is increasing.
The production of high‑purity terbium oxide positions Energy Fuels as a key player in the U.S. rare‑earth market and supports its broader strategy of building a full supply chain—from mining to processing—to meet growing demand for critical materials in advanced technologies.
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