Key Takeaways:
Terbium oxide from Energy Fuels' White Mesa Mill in Utah won commercial approval from one of the world's largest Japanese permanent magnet manufacturers, the company said Aug. 19.
"Successful qualification of our terbium oxide by one of the largest Japanese rare earth permanent magnet manufacturers represents one of the strongest endorsements of our product quality," Ross Bhappu, president and CEO of Energy Fuels, said.
Terbium oxide commands roughly $5.5 million per tonne on a CIF Europe basis, according to Benchmark Mineral Intelligence, reflecting the element's scarcity and limited Western production. Energy Fuels previously qualified its neodymium-praseodymium and dysprosium oxides for magnet manufacture. The company produced its first kilogram of 99.9 percent pure Tb oxide at White Mesa in March 2026 using U.S.-sourced monazite ore, and has produced nearly 30 kilograms of 99.9 percent pure Dy oxide.
Upon closing pending acquisitions of Australian Strategic Materials and Vacuumschmelze, Energy Fuels expects to become the leading vertically integrated mine-to-magnet producer in the U.S. and Europe. The qualified NdPr, Tb, and Dy oxides will anchor that supply chain, targeting demand from EVs, robotics, aerospace, and defense applications.
Construction began July 29 on an expansion of rare earth separation capabilities at White Mesa to enable large-scale heavy rare earth oxide production. The expansion will add capacity for up to 20 tonnes per annum of Tb, 120 tpa of Dy, 140 tpa of samarium, 20 tpa of europium, and 140 tpa of gadolinium oxides, complementing existing 850-1,000 tpa NdPr capacity. The company is also piloting gadolinium oxide production at the mill.
China dominates heavy rare earth production, making Western alternatives strategically important. Lynas Rare Earths produced 1,857 tonnes of NdPr in the fourth quarter of fiscal 2026, with combined Dy and Tb output rising to 19 tonnes, and expects to add gadolinium, yttrium, and lutetium to its portfolio. MP Materials expects initial Tb and Dy refining in the second half of 2026, with plans to extend into samarium oxide separation under a partnership with the U.S. Department of War.
Energy Fuels shares have fallen 31.9 percent over the past six months, compared with a 12.3 percent decline for the industry. The stock trades at 18.31 times forward 12-month price-to-sales, versus the industry's 4.74 times. Zacks Consensus Estimate projects 2026 revenue of $136 million, up 107 percent year-over-year, and 2027 revenue of $224.8 million, up 64.8 percent.
This article is for informational purposes only and does not constitute investment advice.
