Energy Fuels Inc (NYSEAMERICAN: UUUU) (TSE: EFR) and magnet producer, Vulcan Elements, announced a landmark collaboration on Tuesday designed to create a resilient U.S. rare earth magnet supply chain.
The companies signed a memorandum of understanding to advance production of neodymium-praseodymium (NdPr) and dysprosium (Dy) oxides, key raw materials used in high-performance magnets.
These magnets power a wide range of technologies, from defense systems and satellites to robotics, artificial intelligence infrastructure, drones, electric vehicles, and consumer electronics.
Energy Fuels has agreed to supply Vulcan with initial high-purity NdPr and Dy oxides in the fourth quarter of 2025.
Upon delivery, Vulcan will validate the oxides for magnet manufacturing. Following validation, the two companies intend to negotiate long-term supply agreements.
This collaboration is a byproduct of the urgency of developing a U.S.-based supply chain independent of China. Additionally, the partnership underscores Energy Fuels’ emergence as a central player in the global rare earth sector.
The oxides provided under the agreement will come exclusively from U.S. mines. Energy Fuels’ White Mesa Mill in Utah remains the nation’s only operating facility capable of processing monazite mineral concentrates into separated rare earth oxides.
Monazite concentrates are prized in the industry due to their high concentrations of light, mid, and heavy rare earth materials. Energy Fuels sources monazite from heavy mineral sand mines operated by The Chemours Company (NYSE: CC) in Florida and Georgia.
Meanwhile, Vulcan manufactures high-performance rare earth magnets at its commercial facility in Durham, North Carolina, serving both commercial and defense markets.
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U.S. Rare Earth Ambitions Gain Momentum
In 2024, Energy Fuels produced high-purity NdPr oxide at commercial scale at the White Mesa Mill. This light rare earth oxide has already been validated by downstream manufacturers. Furthermore, the company is piloting the production of heavy rare earth oxides, with kilogram-scale samples of dysprosium oxide expected this month and terbium oxide anticipated later this year.
“Together, Vulcan Elements and Energy Fuels are onshoring one of the most important supply chains for America’s future economy and security,” said John Maslin, CEO of Vulcan Elements.
Mark Chalmers, CEO of Energy Fuels, echoed that sentiment. He noted both companies’ proven capacity to deliver rare earth products that meet commercial standards at scale from U.S.-based facilities.
Energy Fuels stock surged on the news of these breakthroughs. The company announced it had produced its first kilogram of 99.9 per cent pure dysprosium oxide at the White Mesa Mill.
This achievement surpasses the 99.5 per cent commercial benchmark and strengthens Energy Fuels’ competitive position. Dysprosium is essential for producing magnets used in electric vehicles, defense technology, and AI hardware.
Investors responded immediately, sending the stock up more than 18 per cent in early trading. Additionally, the shares have now gained over 50 per cent in just five days.
The MOU with Vulcan Elements builds momentum toward a secure U.S. supply chain for rare earth magnets.
In addition, U.S. policy trends have reinforced investor confidence. The federal government has consistently signaled interest in securing domestic supplies of critical minerals.
Furthermore, Washington is expected to continue offering financial and regulatory support to companies that help reduce dependence on foreign sources.
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A National Security and Economic Imperative
This broader policy environment magnifies the importance of Energy Fuels’ rare earth program. Analysts highlight the company’s expansion beyond uranium into critical minerals as both timely and strategically aligned with national priorities. Meanwhile, investors see the partnership with Vulcan as a practical step toward anchoring U.S. rare earth independence.
Energy Fuels’ progress also demonstrates that American firms can achieve commercial-scale production of advanced rare earth oxides. The ability to produce dysprosium oxide at 99.9 per cent purity underscores the technical expertise required to compete in global markets. Additionally, the collaboration with Vulcan ensures that high-purity oxides will flow into U.S. manufacturing chains instead of being exported for processing abroad.
Rare earth magnets remain vital across both commercial and defense applications. From AI data centers to semiconductor fabrication equipment, drones, robotics, and automotive applications, their uses are expanding.
Furthermore, defense platforms depend heavily on reliable supplies of NdPr and Dy. By sourcing materials from U.S. mines and processing them domestically, Energy Fuels and Vulcan aim to secure these strategic supply lines.
Chalmers described the collaboration as the first step toward a long-term relationship that benefits both companies and the United States. Maslin emphasized that Vulcan’s manufacturing capacity already meets commercial and defense standards. Together, the two firms seek to close a gap that has long left the U.S. vulnerable to foreign supply shocks.
Energy Fuels’ pivot into critical minerals also provides investors with growth prospects outside traditional uranium markets. The rapid stock rally highlights both the enthusiasm for rare earth breakthroughs and the perceived value of securing domestic supply.
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Companies rising to meet the challenge
Several U.S. and Canadian companies have positioned themselves to challenge global dominance in rare earths and related critical minerals.
Perpetua Resources Corp (TSE: PPTA) (NASDAQ: PPTA), advancing the Stibnite Gold Project in Idaho, has highlighted its ability to supply antimony, a critical mineral vital for defense applications and battery technology. The project is one of the largest known antimony deposits in the United States.
Additionally, Perpetua has already secured Department of Defense funding to support feasibility studies, underscoring both government interest and strategic value. Furthermore, the company has signalled that antimony production could begin alongside gold output, making it a dual-purpose asset.
Military Metals Corp (CNSX: MILI) (OTCMKTS: MILIF) (FRA: QN90), a lesser-known but emerging player, has concentrated on developing domestic capacity for rare earth and specialty metals that feed directly into U.S. defense supply chains.
The company’s stated goal is to reduce reliance on Chinese sources for essential materials. In addition, Military Materials has emphasized that secure access to metals like dysprosium, terbium, and antimony will safeguard both commercial and military technology.
However, the firm remains in an earlier stage than larger peers, making partnerships and government backing critical for scaling operations.
NevGold Corp (CVE: NAU) (OTCMKTS: NAUFF) (FRA: 5E50) primarily focused on gold exploration in Nevada and Idaho, has also flagged its interest in diversifying into critical minerals.
While gold remains its foundation, the company has highlighted how its properties in the Great Basin region could host additional strategic resources. In addition, NevGold has positioned itself as a potential contributor to North America’s broader critical minerals push.
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