Energy Fuels' Terbium Oxide Qualifies for Rare Earth Permanent Magnet Production, Strengthening Western Supply Chain

Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) announced that its terbium oxide has successfully passed all qualifications for use by one of the world's largest manufacturers of rare earth permanent magnets outside China. The Japan-based manufacturer confirmed that the terbium oxide produced at Energy Fuels' White Mesa Mill in Utah meets its specifications and is approved for commercial rare earth permanent magnet production with no further qualification or validation required. This qualification is a critical milestone for the company and the broader Western rare earth supply chain, as it demonstrates the capability to produce high-purity terbium outside of China, which dominates the global rare earth market.

Terbium is a heavy rare earth element that enhances the heat resistance and performance of high-strength neodymium-iron-boron (NdFeB) permanent magnets. These magnets are essential components in electric vehicles, wind turbines, and various high-tech applications. The importance of terbium is underscored by its current market price of approximately $5.5 million per tonne, according to Benchmark Mineral Intelligence. This high value reflects its scarcity and critical role in advanced technologies.

Energy Fuels' achievement is part of a broader strategy to become a leading vertically integrated producer of rare earth permanent magnets in the U.S. and Europe. The company has previously announced the qualification of its neodymium-praseodymium (NdPr) and dysprosium (Dy) oxides for rare earth permanent magnet manufacturing. Upon closing its pending acquisitions of Australian Strategic Materials (ASM) and Vacuumschmelze (VAC), Energy Fuels expects to have a complete supply chain from mine to magnet, with NdPr, Tb, and Dy oxides produced at the White Mesa Mill serving as key components. This integration is aimed at reducing reliance on Chinese supply and bolstering Western industrial independence in critical materials.

The qualification of terbium oxide is particularly significant given the geopolitical landscape. China currently controls a substantial portion of the global rare earth supply chain, including mining, processing, and magnet production. By securing a qualified source of terbium outside of China, Energy Fuels contributes to diversifying the supply chain and mitigating risks associated with trade disruptions and export controls. This development aligns with U.S. and European efforts to strengthen domestic supply chains for critical minerals, as outlined in various policy initiatives.

Energy Fuels is a leading U.S. critical materials company specializing in uranium, rare earth elements, heavy mineral sands, vanadium, and the development of medical isotopes. The company operates the White Mesa Mill in Utah, the only fully licensed conventional uranium mill in the U.S., which also produces rare earth products. In addition to its uranium operations, Energy Fuels is developing heavy mineral sands and rare earth projects in Madagascar, Brazil, and Australia. With its headquarters in Lakewood, Colorado, the company's shares trade on the NYSE American and TSX.

The news of terbium qualification is a positive signal for investors and stakeholders interested in the rare earth sector. It demonstrates tangible progress in building a Western rare earth supply chain and positions Energy Fuels as a key player in the industry. However, the company still faces challenges, including the completion of pending acquisitions and scaling up production to meet global demand. Nonetheless, this milestone marks a step forward in reducing dependence on Chinese rare earth exports and securing critical materials for future technologies.