Energy Fuels Inc. has initiated construction of its Phase 2 circuit at the White Mesa Mill in Utah, adding specialized processing vessels and reagent systems designed to boost annual rare earth element throughput by over 50%. The enhanced flow sheet will enable the mill to treat mixed rare earth carbonate concentrate sourced from domestic heavy‐mineral sands and monazite, positioning the company as the first U.S. facility capable of continuous commercial‐scale separation of Neodymium-Praseodymium (NdPr), Dysprosium and Terbium.

The recently completed Bankable Feasibility Study for the White Mesa Mill expansion forecasts annual production of 6,000 tonnes of NdPr, 240 tonnes of Dysprosium and 66 tonnes of Terbium, supported by a capital expenditure figure approximately 30% below early-stage estimates. Projected first‐year EBITDA exceeds $200 million, driven by tight operating cost control and high‐purity product recoveries. Payback on the expansion capex is anticipated within three years of commissioning, reflecting a robust internal rate of return in the mid-30% range.

By targeting a first‐quartile cost position globally for NdPr production, Energy Fuels aims to undercut prevailing import prices and address critical U.S. supply chain bottlenecks for permanent magnets used in electric vehicles, wind turbines and defense applications. With bipartisan federal support for onshore rare earth processing and uranium independence, the company’s expanded capabilities enhance its strategic profile. Investors should monitor milestone deliveries of separation equipment, regulatory approvals for reagent usage and offtake agreements with downstream magnet manufacturers.