Energy Fuels Inc. released a Bankable Feasibility Study on January 15 2026 for its Phase 2 rare‑earth processing expansion at the White Mesa Mill in Utah. The study projects a capital cost of $410 million and an all‑in production cost of $29.39 per kilogram of neodymium‑praseodymium (NdPr) equivalent, positioning the company among the lowest‑cost producers worldwide.
The Phase 2 circuit is designed to process 6,000 tons per year of NdPr oxide, 240 tons of dysprosium oxide and 66 tons of terbium oxide. These volumes would give Energy Fuels a 45 % share of U.S. light‑rare‑earth demand and 100 % of the country’s heavy‑rare‑earth needs by 2030, according to the company’s projections. The feasibility study also projects a combined Net Present Value of $3.7 billion and an annual EBITDA of roughly $765 million over the first 15 years, underscoring the project’s strong financial case.
The study’s low production cost and high NPV reflect Energy Fuels’ focus on operational efficiency and scale. By leveraging its existing infrastructure and the monazite supply from the Vara Mada, Donald, and Bahia projects, the company can keep capital and operating costs below those of many Chinese competitors. The expansion also diversifies Energy Fuels’ revenue base, which has historically been dominated by uranium production. In the most recent fiscal year, the company reported a 15.1 % decline in revenue, driven largely by lower uranium sales, but the rare‑earth expansion is expected to offset that decline and create a new high‑margin growth engine.
While the financial outlook is compelling, the project faces several headwinds. Regulatory approval is expected by mid‑2027, and construction and commissioning are targeted for Q1 2029, meaning the first cash flows will not materialize until 2029. Market price volatility for rare‑earth elements and potential supply chain disruptions could affect the projected margins. Energy Fuels’ management has acknowledged these risks but emphasized that the company’s strong cost base and strategic positioning mitigate long‑term exposure.
CEO Mark S. Chalmers said, “Today’s BFS confirms that Energy Fuels is on the cusp of solving America’s rare‑earth processing bottleneck. The study shows that our Phase 2 circuit and Vara Mada project together have a combined NPV of $3.7 billion and can generate roughly $765 million of EBITDA per year over the first 15 years.” He added that the project will help the United States reduce dependence on Chinese rare‑earth processing and strengthen national security.
Investors reacted positively to the announcement, with analysts highlighting the strong financial metrics—particularly the $3.7 billion NPV and $29.39/kg production cost—as key drivers of confidence. The study’s projected market share gains and cost competitiveness were cited as the primary reasons for the favorable market reaction.
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