- Energy Fuels (TSX:EFR;NYSE:UUUU) announced that a South Korean auto manufacturer successfully validated its dysprosium oxide for rare earth permanent magnet production, leading the company to believe that it’s the first US operator to receive such a qualification for light and heavy rare earth elements
- Energy Fuels is a US critical materials company focused on uranium, rare earth elements, heavy mineral sands, vanadium and medical isotopes
- Energy Fuels stock has added 146.92 per cent year-over-year and 330.87 per cent since 2020
Energy Fuels (TSX:EFR;NYSE:UUUU), a top US critical materials producer, announced that a South Korean auto manufacturer successfully validated its dysprosium (Dy) oxide for downstream rare earth permanent magnet production.
The oxide is a key component in neodymium-iron-boron permanent magnets, which enhance durability in the powering of electric vehicles (EVs), hybrid EVs and robotics, and is also central in the manufacturing of defense systems, including drones, missiles, jet engines, guidance systems, as well as control rods for Naval reactors.
According to Friday’s news release, the company has produced about 29 kg of Dy oxide at pilot scale to date out of its White Mesa mill in Utah, achieving purity levels up to 99.9 per cent, exceeding the automotive specification of 99.5 per cent.
The news follows Energy Fuels’ neodymium-praseodymium being certified for rare earth magnets in September, leading the company to believe that it’s the first US operator to receive permanent magnet qualifications for light and heavy rare earth elements.
Given’s China’s leadership position in rare earths and ongoing export restrictions, Energy Fuels has put itself in a differentiated position to expand its presence beyond uranium by helping to meet permanent magnet demand. The company plans to expand into terbium (Tb) oxide in 2026, also essential for permanent magnets in EVs and defense systems, followed by gadolinium and samarium oxide, the latter used in samarium-cobalt magnets for radar, sonar, missile guidance and jet engines.
Planning for a commercial-scale rare earth oxides facility is underway, with leadership envisioning capacity of up to 48 metric tons of Dy oxide and 14 tons of Tb oxide per year.
Management commentary
“Production of dysprosium oxide that meets stringent magnet specifications is yet another key milestone in the company’s critical materials strategy, demonstrating Energy Fuels’ unique and rapidly expanding capabilities in the rare earth sector, and in particular our ability to produce high-purity separated heavy rare earth oxides from monazite at our White Mesa mill in Utah,” Mark S. Chalmers, chief executive officer of Energy Fuels, said in a statement. “This achievement is even more notable by the fact our dysprosium oxide was validated by a well-known third-party end-user. I commend our creative and hardworking team at the mill for this impressive accomplishment.”
About Energy Fuels
Energy Fuels is a US critical materials company focused on uranium, rare earth elements, heavy mineral sands, vanadium and medical isotopes. The company has been the top US producer of natural uranium concentrate for a number of years and is developing mineral projects in Madagascar, Brazil and Australia.
Energy Fuels stock (TSX:EFR;NYSE:UUUU) last traded at C$19.26, granting it a 146.92 per cent return year-over-year and 330.87 per cent return since 2020.
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