U.S. Company Breaks Decades-Long Hold, Produces Critical Terbium Oxide Domestically

Utah, March 27, 2026 – In a landmark achievement for American manufacturing and national security, Energy Fuels Inc. has successfully produced its first kilogram of terbium oxide within the United States, ending decades of complete reliance on foreign sources for this vital rare earth material. The breakthrough, announced March 26th, marks a significant step towards securing a domestic supply chain for critical minerals essential to a wide range of high-tech industries and defense applications.

The Resurgence of U.S. Rare Earth Production: A Strategic Imperative

For decades, China has maintained a near-monopoly over the global supply of rare earth elements, including terbium and dysprosium. These materials, though often found in relatively low concentrations, are indispensable components in numerous technologies, from electric vehicle motors and wind turbines to advanced defense systems. This dominance has raised concerns about supply chain vulnerabilities and potential geopolitical leverage.

Terbium oxide, a dark brown powder, plays a crucial role in enhancing the performance of permanent magnets. When added to magnets used in electric vehicles, hybrids, drones, and robotics, it improves operational capabilities in high-heat environments, enabling the creation of smaller, lighter, and more powerful motors. The demand for terbium oxide is projected to surge as the world transitions towards a greener, more technologically advanced future.

Energy Fuels’ success in producing 99.9% pure terbium oxide at its White Mesa Mill, utilizing monazite ore sourced domestically, demonstrates the feasibility of re-establishing a robust rare earth supply chain within the U.S. The company has also recently produced nearly 30 kilograms of equally pure dysprosium oxide, further solidifying its position as a key player in this critical sector.

“This success proves we can process and produce high purity ‘heavy’ rare earth oxides economically and at scale in the U.S.,” stated Mark Chalmers, CEO of Energy Fuels. “North America will soon have a reliable and secure U.S. commercial source of these vital critical materials ensuring availability for high-performance magnet and defense technologies.”

The company anticipates scaling up production to approximately one kilogram of terbium oxide per week at its existing pilot circuit. This initial output has already garnered interest from magnet manufacturers worldwide, signaling a strong market demand for domestically sourced rare earth materials.

Did You Know? Rare earth elements aren’t actually “rare” in terms of abundance in the Earth’s crust. They are, however, rarely found in concentrated, economically viable deposits.

The implications of this development extend far beyond the commercial realm. Rare earth permanent magnets are integral to a vast array of defense technologies, including the F-35 Lightning II aircraft, submarines, and drones. They are also essential for generating electricity in aircraft electronic systems and focusing microwave energy in radar systems, as highlighted by the Department of Defense.

The U.S. government has recognized the strategic importance of securing a domestic rare earth supply chain. The Trump administration initiated a $12 billion initiative to create a mineral stockpile, and the Department of the Interior has prioritized the development of critical mineral resources within the country. The Department of Defense is actively working to establish a “mine-to-magnet” supply chain, aiming to meet U.S. defense requirements by 2027. Learn more about the DoD’s efforts here.

China currently controls approximately 99% of the global production of dysprosium oxide and terbium oxide. Reducing this dependence is a key objective for the U.S. and its allies.

What challenges do you foresee in scaling up domestic rare earth production to meet growing global demand? And how can the U.S. best balance economic competitiveness with environmental sustainability in the development of these critical resources?

The success of Energy Fuels represents a pivotal moment in the effort to revitalize American manufacturing and secure a more resilient supply chain for the technologies of the future. The Department of Interior’s list of critical minerals underscores the importance of this endeavor.

Frequently Asked Questions About Terbium Oxide and Rare Earths

1. What is terbium oxide used for? Terbium oxide is primarily used in the production of high-performance magnets for electric vehicles, wind turbines, and various electronic devices. It enhances magnet performance in high-temperature environments.
2. Why is domestic rare earth production important? Domestic production reduces reliance on foreign sources, particularly China, mitigating supply chain risks and bolstering national security.
3. What are “heavy” rare earth oxides? Heavy rare earth oxides, like terbium and dysprosium, are crucial for enhancing the performance of permanent magnets used in demanding applications.
4. How does Energy Fuels produce terbium oxide? Energy Fuels utilizes monazite ore sourced from the United States and processes it at its White Mesa Mill to achieve a purity of 99.9% terbium oxide.
5. What is the U.S. government doing to support domestic rare earth production? The U.S. government has launched initiatives to create mineral stockpiles, prioritize critical mineral development, and establish a “mine-to-magnet” supply chain.
6. Is rare earth mining environmentally damaging? While traditional rare earth mining can have environmental impacts, companies like Energy Fuels are employing innovative and sustainable processing techniques to minimize their footprint.