What Are Heavy Rare Earth Elements and Why Do They Matter?
Heavy rare earth elements (HREEs) represent a critical subset of the rare earth family, distinguished by their higher atomic weights and exceptional magnetic and electronic properties. These elements—including dysprosium, terbium, and samarium—are fundamental components in high-performance magnets, advanced electronics, and defense technologies. Their strategic importance has intensified as global demand for clean energy technologies and advanced electronics continues to surge.
Heavy rare earth elements constitute less than 1% of global rare earth reserves, with dysprosium and terbium being especially critical for high-temperature magnets used in electric vehicles and wind turbines. Their unique properties make them irreplaceable in many applications—for instance, dysprosium enables magnets to withstand the high demagnetization temperatures encountered in EV motors.
The challenge with HREEs lies not just in their scarcity but in the concentration of processing capabilities. Until recently, China has dominated approximately 90% of the global HREE supply chain, creating significant vulnerabilities for Western economies and defense sectors. This concentration poses a strategic risk, particularly considering that advanced defense systems like U.S. F-35 fighter jets require over 400kg of rare earth elements per aircraft.
"Dysprosium enables magnets to withstand high demagnetization temperatures in EV motors, making it irreplaceable in modern clean energy applications." – Dr. Roderick Eggert, Colorado School of Mines
What sets HREEs apart from their lighter counterparts is not just their atomic weight but their superior performance characteristics. HREEs have higher neutron absorption cross-sections than light rare earths, making them crucial in specialized defense systems and high-performance computing applications.
How Is Energy Fuels Breaking New Ground in US Rare Earth Production?
Pilot Production Achievements at White Mesa Mill
Energy Fuels has successfully initiated pilot-scale production of heavy rare earth element oxides at its White Mesa Mill facility in Utah. This development represents a significant milestone as White Mesa becomes the only commercial facility in the United States currently generating HREE oxides from mined ores.
"White Mesa is the only U.S. facility producing HREEs from mined ores," notes Mark Chalmers, CEO of Energy Fuels, highlighting the groundbreaking nature of this achievement in rebuilding domestic capability.
The pilot program has already demonstrated impressive results, producing dysprosium oxide with purities ranging from 99.5% to potentially 99.9%. This level of purity is essential for high-performance applications in defense and clean energy technologies. According to the company's timeline, production of additional HREE oxides—including terbium and samarium—will follow in the coming months.
Production Timeline and Volume Projections
Energy Fuels has established an ambitious yet methodical production schedule:
- First kilogram of dysprosium oxide expected within 30 days (by mid-August 2025)
- Approximately 15 kg of dysprosium oxide projected by the end of September 2025
- Terbium oxide production scheduled to begin in October 2025, with first kilogram expected by November
- Samarium oxide production planned to commence in January 2026
This phased approach allows the company to refine its processes while gradually scaling up production capabilities to meet commercial demands.
The significance of these production milestones cannot be overstated. For decades, the United States has lacked domestic HREE processing capability, creating a strategic vulnerability in supply chains for advanced technology and defense applications.
What Makes Energy Fuels' Approach to Rare Earth Production Unique?
Integration of Existing Infrastructure
Energy Fuels' strategic advantage stems from its ability to leverage the existing Phase 1 rare earth separation circuit at the White Mesa Mill. With only minor modifications to this infrastructure, the company believes it could transition to commercial HREE oxide production by the fourth quarter of 2026—a remarkably accelerated timeline compared to building new facilities from scratch.
This approach demonstrates how adaptive reuse of existing mining infrastructure can accelerate critical minerals transition while minimizing additional environmental impacts and capital expenditures. Typically, new rare earth processing facilities require 5+ years from planning to operation, making Energy Fuels' timeline particularly impressive.
Demonstrated Technical Expertise
The company has already established its technical credibility in rare earth processing through the successful commissioning of its Phase 1 REE separations circuit at White Mesa in April 2024. This circuit has demonstrated commercial-scale separation capabilities for light rare earth elements such as neodymium and praseodymium.
This proven technical foundation provides confidence in Energy Fuels' ability to extend its separation capabilities to the more challenging heavy rare earth elements. The progression from light to heavy rare earth separation represents a significant technological advancement, as HREEs typically require more complex extraction and purification processes.
How Will the Donald Project Strengthen US Rare Earth Supply?
Strategic Resource Development in Australia
The Donald Project in Victoria, Australia, represents a cornerstone of Energy Fuels' long-term HREE strategy. This joint venture contains significant deposits of monazite and xenotime—minerals rich in heavy rare earth elements—and has already secured necessary development permits.
What distinguishes the Donald Project is its exceptional concentration of HREEs, with Energy Fuels describing it as "one of the richest deposits of HREEs in the world." This resource quality is crucial for establishing economically viable HREE production outside of China.
The project's location in Australia—a country that produced approximately 50% of global rare earth raw materials in 2024—provides geopolitical advantages in terms of supply chain security and partnerships with allied nations. The development of Australia strategic reserves further strengthens this position in the global market.
Projected Production Impact on US Supply
The Donald Project's planned Phase 1 output would deliver substantial quantities of critical HREEs:
| Element | Annual Production | Percentage of Current US Demand |
|---|---|---|
| Samarium | 129 tonnes/year | 250% |
| Terbium | 16 tonnes/year | 23% |
| Dysprosium | 92 tonnes/year | 34% |
These production volumes could significantly reduce US dependence on foreign HREE supplies, particularly from China. The project's Phase 2 expansion could further increase output to 13,000 tonnes per year of rare earth element concentrate, strengthening supply chain resilience.
The mineral composition at Donald is particularly favorable, with monazite containing higher concentrations of samarium and terbium, while xenotime provides significant dysprosium content. This mineral diversity allows for more efficient recovery of multiple critical elements from a single resource.
What Is Energy Fuels' Long-Term Rare Earth Strategy?
Global Resource Development Pipeline
Beyond the Donald Project, Energy Fuels is advancing two additional international projects to secure diverse HREE supplies:
- Toliara Project (Madagascar): Could begin production as early as 2028, pending government approvals
- Bahia Project (Brazil): Expected to commence production in 2029
This global approach to resource development helps mitigate geopolitical risks while ensuring stable, long-term access to critical HREE resources. By establishing operations across multiple continents, Energy Fuels is creating a resilient supply network that reduces vulnerability to disruptions in any single region.
Creating a Complete US-Based Supply Chain
Energy Fuels aims to establish itself as the critical link in a revitalized US rare earth supply chain. As CEO Mark Chalmers emphasized, "Energy Fuels is in a unique position to produce the heavy rare earth oxides needed by other US producers to make rare earth metals, alloys and magnets."
By providing domestically-produced HREE oxides, the company would enable downstream manufacturers to produce rare earth metals, alloys, and permanent magnets within the United States—completing a supply chain that has been largely absent from North America for decades.
This vertical integration strategy extends from mining operations through separation and oxide production, with potential future expansion into metal and alloy production. Such integration would significantly strengthen domestic manufacturing capabilities for critical technologies.
What Challenges Remain for Domestic Rare Earth Production?
Economic Viability Concerns
While technical feasibility has been demonstrated, the economic competitiveness of US-based HREE production remains a significant challenge. Chinese producers benefit from economies of scale, integrated supply chains, and historically lower environmental standards, allowing them to maintain price advantages of 30-40% lower production costs due to subsidized energy and scaled recycling operations.
The Rare Earth Industry Association has noted that "U.S. environmental compliance adds 20-25% to operational costs" compared to some international competitors. This cost differential has historically undermined domestic rare earth ventures, as demonstrated by Molycorp's bankruptcy after failing to compete with Chinese pricing.
Energy Fuels' success will depend on maintaining production costs that remain competitive while meeting stringent US environmental requirements—a balance that has challenged previous attempts at domestic rare earth production.
Supply Chain Integration Complexities
Producing HREE oxides represents only one component of a complete rare earth supply chain. The success of Energy Fuels' initiative will ultimately depend on the parallel development of downstream capabilities—including metal reduction, alloy formation, and magnet manufacturing—within the United States.
Without these complementary capabilities, domestically-produced HREE oxides might still require export for final processing, limiting the strategic benefits of Energy Fuels' production. Rebuilding these downstream processes requires significant investment, specialized expertise, and long-term policy support.
The challenge extends beyond technical capabilities to include workforce development, as the specialized knowledge required for rare earth processing has largely migrated overseas during the past three decades of supply chain offshoring.
How Does This Development Impact the Global Rare Earth Market?
Diversification of Global Supply
Energy Fuels' entry into HREE production represents a significant step toward diversifying global rare earth supplies. While China currently dominates approximately 85% of global rare earth processing, new production from companies like Energy Fuels could gradually reduce this concentration, creating a more resilient global market.
The U.S. currently imports approximately 80% of its heavy rare earth elements from China, creating a strategic vulnerability that Energy Fuels' production could help address. By 2027, Energy Fuels' output could potentially reduce China's HREE market control from 85% to approximately 70%—a modest but meaningful shift in global supply dynamics.
Strategic Implications for Critical Mineral Security
The development of domestic HREE production capabilities has substantial strategic implications for the United States and its allies. As clean energy technologies and advanced defense systems increasingly rely on rare earth elements, secure access to these materials becomes a matter of national security.
Energy Fuels' initiative aligns with broader governmental efforts to reduce dependence on potentially vulnerable supply chains for critical minerals. This diversification strategy extends beyond the United States, with initiatives like the US mineral production order working to coordinate international efforts to secure stable supplies of these strategic materials.
The market impact extends beyond simple supply volumes to include price stability. Historical HREE markets have experienced significant volatility due to their concentrated supply, with price fluctuations undermining long-term investment in downstream industries. Diversified supply sources could help stabilize these markets, encouraging greater investment in technologies that rely on these materials.
What's Next for Energy Fuels and US Rare Earth Production?
Near-Term Production Milestones
Energy Fuels' immediate focus remains on successfully completing its pilot production phase and preparing for commercial-scale operations. The company's ability to meet its announced production targets for dysprosium, terbium, and samarium oxides will provide important indicators of its technical and operational capabilities.
"Phase 1 proven via neodymium/praseodymium separation since April 2024," notes Energy Fuels, highlighting that their initial light rare earth separation capability provides a foundation for their heavy rare earth expansion.
Scaling to Commercial Production
The transition from pilot to commercial-scale production represents the next major challenge. Energy Fuels projects that with minor modifications to its existing infrastructure, commercial HREE oxide production could begin at White Mesa by late 2026, followed by production from the Donald project in Australia by late 2027.
This timeline suggests that within the next 2-3 years, the United States could have its first significant domestic source of heavy rare earth elements in decades. However, this ambitious schedule faces potential risks from permitting delays, technical challenges in scaling up production, and evolving market conditions.
The company's success will depend not only on its technical execution but also on continued policy support, including potential Department of Energy grant funding for HREE projects and the implementation of loan guarantee programs that could help mitigate financial risks associated with these capital-intensive projects.
FAQ: Heavy Rare Earth Elements and US Production
What makes heavy rare earth elements different from light rare earths?
Heavy rare earth elements (HREEs) have higher atomic weights than light rare earths and typically possess stronger magnetic properties. Elements like dysprosium and terbium are classified as HREEs, while neodymium and praseodymium are light rare earths. HREEs are generally scarcer and more difficult to process, making them more valuable and strategically important.
Why hasn't the US produced heavy rare earth elements before now?
While the US has historically mined rare earth elements, the processing capabilities—particularly for separating individual elements—gradually shifted to China beginning in the 1990s due to lower costs and less stringent environmental regulations. Rebuilding these capabilities requires significant investment, technical expertise, and infrastructure development.
How do rare earth elements contribute to clean energy technologies?
Rare earth elements are essential components in many clean energy technologies. Neodymium, praseodymium, dysprosium, and terbium are used in high-performance permanent magnets found in electric vehicle motors and wind turbine generators. These magnets enable the production of lighter, more efficient motors and generators that are critical for the energy transition.
What are the environmental considerations in rare earth processing?
Rare earth processing has historically involved significant environmental challenges, including the management of radioactive byproducts (particularly thorium and uranium), chemical waste, and water usage. Modern facilities like Energy Fuels' White Mesa Mill incorporate advanced environmental controls to minimize these impacts, though careful monitoring remains essential. Furthermore, mining decarbonisation benefits are being realized as the industry adopts cleaner processes.
Further Exploration
Readers interested in learning more about rare earth elements and their strategic importance can also explore related educational content available on Mining Weekly's website, which offers additional perspectives on critical minerals and their role in global supply chains.
Disclaimer: This article contains forward-looking statements regarding production timelines, resource estimates, and market impacts. Actual outcomes may differ from projections due to technical challenges, market conditions, regulatory changes, or other factors beyond the control of the companies discussed. Readers should conduct their own due diligence before making investment or policy decisions based on the information presented.
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