US-Based Energy Fuels and South Korea-Based POSCO International Forge Collaboration to Create Non-China Rare Earth Magnet Supply Chain
Collaboration could fast-track the formation of one of the world's first commercial permanent rare earth magnet supply chains independent of China by linking Energy Fuels' emerging U.S. rare earth oxide production with POSCO's current position as a global leader in traction motor cores used in EVs and hybrid EVs sold by major OEMs.
DENVER, March 17, 2025 /CNW/ - Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) (Energy Fuels or the Company), a leading U.S. producer of uranium, rare earth elements (REE), and heavy mineral sands (HMS), today announced the signing of a strategic Memorandum of Understanding (MOU) with South Korea-based POSCO International Corporation (POSCO) that sets out the principal terms of a collaboration that, if successful, has the potential to create a new non-China REE supply chain for electric vehicle (EV) and hybrid EV drivetrains for U.S., E.U., Japanese and South Korean auto-makers.
POSCO is a proven producer of traction motor cores, which are key components in EV and hybrid EV drivetrains and a global specialist in EV powertrain components. They are currently a leading supplier to existing automotive customers, and POSCO's drivetrains have been qualified by U.S., South Korean, European and Japanese customers. We believe this collaboration places Energy Fuels in an excellent position to secure supportive sales agreements for its REE oxides in the future. In addition, upon successful validation, Energy Fuels' U.S.-processed REE oxide could be used in vehicles for U.S. and European markets as soon as this year.
"Today's agreement between Energy Fuels and POSCO International brings the U.S. and our allies in Europe, South Korea and Japan one step closer to seeing vehicles powered by American-made rare earth oxides with no ties to China, unlocking a scalable, high-quality allied REE magnet processing and manufacturing route that does not currently exist in the U.S." said Energy Fuels' President and CEO Mark Chalmers. "Energy Fuels is moving aggressively to address a critical gap in the domestic market that is both competitive and shielded from geopolitical factors."
Initial qualification samples of Energy Fuels' neodymium-praseodymium (NdPr) oxide, produced at its White Mesa Mill in Utah, have already met all of POSCO's applicable specifications. Under the MOU, Energy Fuels will supply a larger scale sample of NdPr oxide to POSCO, which will be processed into NdPr metal, alloy and finished high-performance permanent REE magnets to qualify the Company's NdPr oxide for use in POSCO's traction motor cores. In addition, Energy Fuels will receive final magnet and sintered block samples to demonstrate successful production of high-performance magnets from its NdPr oxide.
Upon successful validation of the initial sample supply of NdPr Oxide, Energy Fuels and POSCO will discuss the potential delivery of additional mass production supply volumes of NdPr oxide later this year for permanent REE magnet production, which will be enough to power 30,000+ EVs, which could be available to consumers later this year.
In addition, following the completion of validation and other requirements under the MOU, the parties have indicated their intention to discuss the potential for Energy Fuels to supply U.S.-produced REE oxides to POSCO on a long-term basis, while leaving significant volumes available for other customers, including commercial-scale REE metallization, alloying, and magnet production initiatives, currently being constructed in the U.S.
Chalmers continued, "Energy Fuels and POSCO are working together to create a traceable, competitively priced, and sustainably produced rare earth supply chain for allied magnet-makers and U.S. and allied automotive partners. We are proud to work with POSCO, as they have deep expertise, a strong network, and an existing customer base in permanent magnets, traction drive units, and other motor systems, making our business relationship with POSCO highly valuable for Energy Fuels. If a definitive agreement with POSCO is completed this year, we could see Energy Fuels' American-made rare earths powering vehicles in the U.S. in 2025."
Energy Fuels previously announced commercial-scale production of high-purity, on-spec separated NdPr oxides which can be scaled significantly at what the Company expects will be at a low-cost relative to other producers, using high-grade monazite feedstock from mine acquisitions and partnerships the Company has completed in U.S.-allied nations. Monazite concentrates, produced as a low-cost byproduct of HMS projects, typically have a grade of 50-60% total rare earth oxides (TREO), including 20% - 24% NdPr (on a %TREO basis) and excellent distributions of valuable heavy REEs, including dysprosium (Dy), terbium (Tb) and others. Key transactions completed by Energy Fuels in the HMS space to secure company-controlled supply chains of monazite concentrates from four diversified and significant sources that include:
- Toliara HMS Project (Madagascar, 100% acquisition of Base Resources, Oct. 2024)
- Donald HMS Project (Australia, right to earn-in to a 49% interest in a joint venture with Astron Corporation with Energy Fuels' receiving 100% of the monazite from the project, June 2024)
- Bahia HMS Project (Brazil, 100% acquisition, Feb. 2023)
- Ongoing relationship with Chemours (HMS mining and processing, Georgia & Florida, USA)
The MOU is binding as it relates to: Energy Fuels requirement to ship the larger-scale sample supply of NdPr oxide to POSCO for testing; POSCO's requirement to provide samples to Energy Fuels; the parties' commitment to work towards verifying the quality of the NdPr oxide and validate its use; the parties commitment to discuss the potential for Energy Fuels to supply an additional supply of NdPr oxide for mass production to POSCO; and certain administrative matters. The parties' intent to potentially enter into definitive agreements for the Company to supply U.S. – produced REE oxides to POSCO on a long-term basis is non-binding unless and until any such definitive agreements have been entered into by both parties.
ABOUT ENERGY FUELS
Energy Fuels is a leading US-based critical minerals company, focused on uranium, REEs, HMS, vanadium and medical isotopes. The Company, which owns and operates several conventional and in-situ recovery uranium projects in the western United States, has been the leading U.S. producer of natural uranium concentrate for the past several years, which is sold to nuclear utilities that process it further to produce carbon-free nuclear energy. The Company also owns the White Mesa Mill in Utah, which is the only fully licensed and operating conventional uranium processing facility in the United States. At the Mill, the Company also produces advanced REE products, vanadium oxide (when market conditions warrant), and is evaluating the potential recovery of certain medical isotopes from existing uranium process streams needed for emerging Targeted Alpha Therapy cancer treatments. The Company is also developing three (3) HMS projects: the Toliara Project in Madagascar; the Bahia Project in Brazil; and the Donald Project in Australia in which the Company has the right to earn up to a 49% interest in a joint venture with Astron Corporation Limited. The Company is based in Lakewood, Colorado, near Denver, with its HMS operations managed from Perth, Australia. The primary trading market for Energy Fuels' common shares is the NYSE American under the trading symbol "UUUU," and the Company's common shares are also listed on the Toronto Stock Exchange under the trading symbol "EFR." For more information on all we do, please visit www.energyfuels.com.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This news release contains certain "Forward Looking Information" and "Forward Looking Statements" within the meaning of applicable United States and Canadian securities legislation, which may include, but are not limited to, statements with respect to: any expectation that the Company will maintain its position as a leading U.S.-based uranium and critical minerals company or as the leading producer of uranium in the U.S.; any expectation that the Company and POSCO will be successful in advancing the creation of a non-China REE magnet supply chain, potentially available to US and allied automotive markets this year, or at all; any expectation that the Company's NdPr oxide will meet or continue to meet all required specifications and be or continue to be qualified for use in traction motor cores that power EVs and hybrid EVs or otherwise; any expectation that the Company and POSCO will enter into a definitive agreement for the delivery of additional NdPr oxide later this year, or at all, for permanent REE magnet production or whether any such REE magnet production would be enough to power 30,000 or more EVs; any expectation that the Company and POSCO will enter into definitive agreements for the Company to supply U.S. – produced REE oxides to POSCO on a long-term bases; any expectation that the Company will leave significant volumes available for other customers, including commercial-scale REE metallization, alloying, and magnet production initiatives in the U.S.; any expectation that the Company's collaboration with POSCO will position Energy Fuels to secure supportive sales agreements for its REE oxides in the future; any expectation that Energy Fuels and POSCO will create a traceable, competitively priced, and sustainably produced rare earth supply chain for allied magnet-makers and automotive partners; any expectation that the Company will be able to or continue to produce high-purity, on-spec separated NdPr oxides at a low-cost relative to other producers; any expectation that any of the Company's HMS projects will be permitted, developed and operated to produce high-grade monazite feedstock as a low -cost byproduct of HMS projects, or at all; any expectations as to the TREO and individual REE grades and distributions within Company-produced monazite; and any expectation that the Company will be successful in recovering certain medical isotopes from existing uranium process streams needed for emerging cancer treatments. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects," "does not expect," "is expected," "is likely," "budgets," "scheduled," "estimates," "forecasts," "intends," "anticipates," "does not anticipate," or "believes," or variations of such words and phrases, or state that certain actions, events or results "may," "could," "would," "might" or "will be taken," "occur," "be achieved" or "have the potential to." All statements, other than statements of historical fact, herein are considered to be forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements express or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements include risks associated with: commodity prices and price fluctuations; engineering, construction, processing and mining difficulties, upsets and delays; permitting and licensing requirements and delays; changes to regulatory requirements; legal challenges; competition from other producers; public opinion; government and political actions; market factors, including future demand for REEs; and the other factors described under the caption "Risk Factors" in the Company's most recently filed Annual Report on Form 10-K, which is available for review on EDGAR at www.sec.gov/edgar.shtml, on SEDAR at www.sedar.com, and on the Company's website at www.energyfuels.com. Forward-looking statements contained herein are made as of the date of this news release, and the Company disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements. The Company assumes no obligation to update the information in this communication, except as otherwise required by law.
SOURCE Energy Fuels Inc.
For further information: Investor Inquiries: Energy Fuels Inc., Kim Ronkin Casey, Investor Relations Manager, 303-389-4165 or Toll free: (888) 864-2125, [email protected]
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