USAR Launches Heavy Rare Earth Hydrometallurgy Plant in Colorado, Aims for Q3 2026 Oxide Production

[SMM Rare Earth Express] US critical minerals developer Energy Fuels announced that it has received a conditional commitment for $725 million in senior secured debt from the US Department of Defense’s Office of Strategic Capital. The 20-year loan will be used to expand rare earth processing capacity at its White Mesa Mill in Utah and to build a rare earth metals and alloys production facility. The company plans to acquire Australian Strategic Materials (ASM) to complete its supply chain from mining to metal. Phase 1 of the White Mesa Mill processes 10,000 mt of monazite concentrates annually, producing 1,000 mt of Pr-Nd oxide. After the Phase 2 expansion, annual Pr-Nd capacity will rise to over 6,000 mt, with additional terbium (66 mt/year) and dysprosium (240 mt/year) capacity. The loan is subject to further due diligence and final documentation before disbursement.

On June 22, China’s MOFCOM imposed export controls on 10 US entities, including rare earth giants MP Materials and USA Rare Earth, retaliating against the US expansion of its "Chinese Military Companies List" on June 8. While largely symbolic for China's magnet exports, the move targets the Achilles' heel of US supply chain autonomy, threatening higher costs and delays for American defense and rare earth projects.