Energy Fuels and Neo Performance Materials Announce New Rare Earth Production Initiative

Strategic Insights -

Energy Fuels, a US-based mining company, and Neo Performance Materials, a Toronto-based materials technology company, have announced a new rare earth production initiative that aims to establish a critical material supply chain in Europe and North America. The initiative involves processing monazite sands, a byproduct of heavy mineral sands mining, into a mixed rare earth carbonate (RE Carbonate) at Energy Fuels' Utah-based plant, which will then be shipped to Neo's European processing facility for further separation.

This collaboration is a significant development in the rare earth sector, as it marks the first time in over 20 years that monazite ore from the US will be used as a feedstock to manufacture separated rare earth materials outside of China. The initiative is expected to provide a stable and secure supply of rare earth materials to European manufacturers, who rely heavily on these materials for the production of advanced technologies such as permanent magnets, wind turbines, and electric vehicles.

Key Takeaways:

  • Energy Fuels will process natural monazite sands into RE Carbonate at its Utah-based plant, which will then be shipped to Neo's European processing facility.
  • Neo will separate the RE Carbonate into commercial value-added products, making this initiative the first time in over 20 years that monazite ore from the US will be used as a feedstock to manufacture separated rare earth materials outside of China.
  • The initiative is expected to establish a critical material supply chain in Europe and North America, providing a stable and secure supply of rare earth materials to manufacturers.
  • The White Mesa Mill, operated by Energy Fuels, will extract the naturally occurring uranium in the monazite ore, which will be sold to power clean, carbon-free nuclear energy.
  • Energy Fuels will produce its RE Carbonate from natural monazite sands supplied by Chemours Company under a sales agreement.
  • Scotiabank has valued the entire US rare earth industry at $206 billion, with Energy Fuels' White Mesa Mill having the potential to become a significant player in the sector.

Statistics:

  • Energy Fuels aims to process 15,000 tons of monazite ore per year, which would represent 2% of the White Mesa Mill's existing throughput capacity.
  • The US rare earth sector has a total demand of 50% of the total rare earth content of 15,000 tons, equating to 7,500 tons or more per year.
  • The current annual rare earth demand in the US is 3,000-4,000 metric tons of TREO (total rare earth oxides) for automobile and wind turbine demand alone.
  • Rare earths play a key role in the production of high-strength permanent magnets, which are essential for the manufacture of electric vehicles, wind turbines, and other modern technologies.

Sources:

  • Energy Fuels Inc. - Form 8-K Filing (March 1, 2021)
  • Energy Fuels Inc. - Press Release (December 14, 2020)
  • Scotiabank - Report (undated, but mentioned in the Energy Fuels Inc. Form 8-K Filing)