Energy Fuels rises on rare earth magnet production breakthrough

Energy Fuels (NYSE-A: UUUU) (TSX: EFR) soared on Tuesday after receiving confirmation that its US mined and processed rare earth products are qualified for making permanent magnets used in electric vehicles and hybrid EVs.In a press release, the Colorado-based company announced that its high-purity neodymium-praseodymium (NdPr) oxides have successfully been used by South Korea’s POSCO for the manufacturing of rare earth permanent magnets.POSCO is a global leader in the manufacturing of traction motor cores used in EVs and hybrids, and the largest supplier in South Korea. Earlier this year, it signed a memorandum of understanding to process NdPr oxides supplied by Energy Fuels into metal, alloy and finished magnets to qualify for use in its traction motor cores.Energy Fuels, POSCO team up to explore REE magnet supply chainFor that, Energy Fuels has also confirmed that the NdPr oxides have passed all quality assurance and quality control (QA/QC) benchmarks for EV drive unit motors sold to major automotive manufacturers across North America, the EU, Japan and Korea. Drive units powered by Energy Fuels’ NdPr oxides are expected to be installed in new vehicles and be available in the marketplace within the next few months, it added.Energy Fuels said the 1.2 metric tonnes of NdPr oxide it supplied POSCO earlier this year were processed into approximately 3 metric tonnes of magnets, enough to power approximately 1,500 new vehicles.“We are excited to announce that rare earth oxides mined, processed and produced in America are expected to be powering EVs and hybrids for sale around the world very soon, representing a major achievement in restoring domestic critical mineral supply chains,” stated Mark Chalmers, CEO of Energy Fuels.“Commercial validation of our rare earth oxides at scale is a significant triumph for Energy Fuels, proving we have the capacity and expertise to produce rare earth materials that meet both commercial and defense requirements, at scale and to appropriate purity and performance specifications,” he added.With the successful validation, the parties now plan to discuss a potential longer-term supply arrangement. These may include commercial-scale REE metallization, alloying and magnet production initiatives, as disclosed in their March MOU.Shares of Energy Fuels jumped over 5% by 11 a.m. in New York following the announcement, giving the company a market capitalization of just under $3 billion. In Toronto, its stock rose 6% for a C$4 billion market capitalization.US-produced rare earthsThe successful production of rare earth permanent magnets from Energy Fuels’ NdPr oxides marks a decisive breakthrough in building a “mine-to-magnet” supply chain independent of China, the company said, emphasizing that its products are strictly produced in the US.The NdPr oxides are produced at Energy Fuels’ White Mesa mill in Utah, the only licensed uranium mill in the US, with the added capability to produce other critical minerals such as rare earth elements. The rare earths are derived from monazite concentrates supplied by heavy mineral sands operations across Florida and Georgia.In addition to producing neodymium and praseodymium, which are considered “light” rare earths, the White Mesa mill is also piloting the production of the more in-demand “heavy” rare earths, starting with dysprosium — also a key ingredient in permanent magnets. First production of high-purity dysprosium oxide was achieved last month.“We plan to construct ‘heavy’ rare earth oxide capacity in 2026 at our White Mesa mill in Utah, thereby ‘closing the loop’ on this important non-China supply chain,” Chalmers said.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com