Energy Fuels Inc. (NYSE American: UUUU) has started construction on an expansion of its White Mesa Mill in Utah to add heavy rare earth oxide production capacity, according to a company press release.

The expansion is designed to produce up to approximately 20 tonnes per annum (tpa) of terbium, 120 tpa of dysprosium, 140 tpa of samarium, 20 tpa of europium, and 140 tpa of gadolinium oxides. The terbium and dysprosium circuits are expected to be commissioned by the end of 2027, with samarium, europium, and gadolinium circuits to follow by the end of 2028. The mill currently has capacity to produce up to 1,000 tpa of separated neodymium-praseodymium oxide.

The total capital expenditure for the project is estimated at $104 million. The company said it expects government grants and loans to cover a large portion of the cost, with the debt component planned to be covered by a previously announced conditional U.S. government loan commitment. The equity portion is to be drawn from the company's working capital, which totaled approximately $0.96 billion as of March 31, 2026.

"Heavy rare earth production is a severe pinch point in North American and European permanent magnet supply chains," said Ross Bhappu, President and Chief Executive Officer of Energy Fuels.

The expansion is sized to process monazite output from the company's Donald Project joint venture in Australia, which is expected to produce approximately 8,500 to 9,500 tonnes of monazite concentrate annually beginning in 2028, subject to a positive final investment decision anticipated in the third quarter of 2026.

Energy Fuels also plans a further expansion in 2029 to increase overall mill capacity to 6,294 tpa of neodymium-praseodymium oxide, 80 tpa of terbium, and 288 tpa of dysprosium oxides. The company said the planned expansions are contingent on the successful completion of its pending acquisitions of Australian Strategic Materials and Vacuumschmelze.