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 economic potential and competitive positioning in the critical materials market. The study outlines an estimated $410 million initial capital cost, with an after-tax net present value of $1.9 billion at an 8% discount rate and a 33% internal rate of return for the Phase 2 Circuit on a standalone basis.
The economic significance of this expansion becomes even more pronounced when considering the combined value with the company's Vara Mada project, where the NPV rises to $3.7 billion. This substantial financial projection underscores the strategic importance of rare earth elements in the global supply chain, particularly as nations seek to secure domestic sources for technologies ranging from electric vehicles to defense systems.
Upon commissioning, the Phase 2 Circuit is expected to expand neodymium-praseodymium oxide production capacity to more than 6,000 tonnes per year, positioning the White Mesa Mill among the world's largest and lowest-cost producers of both light and heavy rare earth oxides. This expansion represents a significant step toward reducing U.S. dependence on foreign rare earth supplies, with regulatory approval anticipated by mid-2027 and construction and commissioning targeted by the first quarter of 2029.
The timing of this announcement coincides with increasing global demand for rare earth elements essential for clean energy technologies, national security applications, and advanced manufacturing. Energy Fuels' existing infrastructure at White Mesa Mill provides a strategic advantage, as it is the only fully licensed and operating conventional uranium processing facility in the United States, with established capabilities for producing advanced rare earth products.
For investors and industry observers, the detailed study results are available in the full press release at https://ibn.fm/32xlV, while ongoing updates about the company can be found in its newsroom at http://ibn.fm/UUUU. The company's position as a leading U.S.-based critical materials company with operations spanning uranium, rare earth elements, heavy mineral sands, vanadium and medical isotopes adds strategic diversification to its portfolio.
The White Mesa Mill expansion represents more than just corporate growth—it addresses fundamental supply chain vulnerabilities in the United States. With China currently dominating global rare earth production and processing, domestic projects like this one contribute to national security objectives while supporting the transition to clean energy technologies that require permanent magnets made from rare earth elements.
As the project moves through regulatory approval and toward construction, its progress will serve as an indicator of broader efforts to rebuild domestic critical minerals supply chains. The combination of strong economics, existing infrastructure, and strategic timing makes this expansion particularly noteworthy for stakeholders across multiple sectors, from energy and manufacturing to national security and environmental sustainability.
