Energy Fuels Inc. has released a bankable feasibility study for its planned Phase 2 rare earth element processing circuit expansion at the White Mesa Mill in Utah, confirming strong project economics and the potential to supply a significant share of U.S. rare earth demand. The study outlines an estimated initial capital cost of $410 million, with an after-tax net present value of $1.9 billion at an 8% discount rate and an internal rate of return of 33% for the Phase 2 Circuit on a standalone basis.
When paired with the company's Vara Mada project, the combined net present value rises to $3.7 billion. The Phase 2 Circuit is expected to expand neodymium-praseodymium oxide production capacity to more than 6,000 tonnes per year upon commissioning, positioning the White Mesa Mill among the world's largest and lowest-cost producers of both light and heavy rare earth oxides. Regulatory approval for the expansion is anticipated by mid-2027, with construction and commissioning targeted by the first quarter of 2029.
The announcement represents a significant development in the U.S. critical minerals sector, where domestic production of rare earth elements has been limited despite growing demand from defense, technology, and clean energy industries. Energy Fuels, which trades on the NYSE American under the symbol "UUUU" and on the Toronto Stock Exchange as "EFR," has positioned itself as a leading U.S.-based critical materials company with operations spanning uranium, rare earth elements, heavy mineral sands, vanadium, and medical isotopes.
The White Mesa Mill is currently the only fully licensed and operating conventional uranium processing facility in the United States, giving Energy Fuels a unique infrastructure advantage for rare earth processing. The company's latest news and updates are available in its newsroom at http://ibn.fm/UUUU. The full press release detailing the feasibility study results can be viewed at https://ibn.fm/32xlV.
For business and technology leaders, the expansion signals growing momentum in domestic critical mineral production, which could reduce reliance on foreign supply chains vulnerable to geopolitical tensions. The project's scale and projected cost competitiveness suggest it could meaningfully impact markets for permanent magnets used in electric vehicles, wind turbines, and various defense applications. The timing aligns with increasing government focus on securing domestic supply chains for materials deemed essential to national security and economic competitiveness.
The feasibility study results provide concrete financial metrics that investors and industry observers can use to assess the project's viability compared to international competitors. With regulatory approval still pending and construction not expected to begin for several years, the announcement represents an important milestone rather than an immediate operational change. However, the projected economics and production capacity demonstrate how previously underutilized U.S. industrial assets could be repurposed to address strategic material shortages.
