Energy Fuels and Neo Performance Materials produce first shipment of mixed rare earth carbonate bound for Europe

Energy Fuels Inc (NYSEAMERICAN:UUUU) (TSE:EFR) and Neo Performance Materials Inc (TSE:NEO) have announced that the first of an expected 15 containers of mixed rare earth carbonate (RE carbonate) has been successfully produced by Energy Fuels at its White Mesa mill in Utah and is en route to Neo’s rare earth separations facility in Estonia, creating a new US-to-Europe rare earth supply chain.

The first container holds approximately 20 tons of the product. More shipments of the rare earth carbonate are expected as Energy Fuels continues to process natural monazite sand ore mined in Georgia by Chemours (NYSE:CC) for both the rare earth elements and naturally occurring uranium that it contains.

Energy Fuels, a Colorado-based integrated resource company, is making strides toward building a critical US rare earth supply chain with the development of a Rare Earth Element (REE) carbonate production program at its White Mesa Mill, which was ramped up during the first quarter of 2021.

READ: Noble Capital raises rating on Energy Fuels to Outperform, citing value of Rare Earth Element program

This new supply chain will initially produce rare earth products from monazite that is processed into RE carbonate at Energy Fuels’ mill in Utah. The RE carbonate is then processed by Neo at its Silmet rare earth processing facility in Sillamäe, Estonia into separated rare earth oxides and other value-added rare earth compounds. Neo is the only commercial producer of separated rare earth oxides in Europe.

Monazite, which is produced as a byproduct of existing heavy mineral sands mining, also contains naturally occurring uranium that Energy Fuels recovers for use in the generation of carbon-free nuclear energy.

“Today, Energy Fuels and Neo took significant steps toward restoring critical US and European rare earth supply chains,” Energy Fuels’ president and CEO Mark S. Chalmers said in a statement.

“Energy Fuels has methodically ramped up our mixed rare earth carbonate production since we first started feeding Georgia monazite ore into our Utah mill in March.

“Successfully producing this rare earth product, and physically delivering the first containers of Rare Earth Carbonate to Neo, is an important achievement, not only for Energy Fuels and Neo, but also for US government efforts to restore critical rare earth supply chains,” Chalmers added.

Energy Fuels and Neo also announced the signing of a definitive supply agreement by the companies’ respective affiliates. Under the agreement, Energy Fuels will ship all or a portion of its RE carbonate to Neo’s Silmet rare earth separations facility. Neo will then process Energy Fuels’ RE carbonate into separated rare earth materials for use in rare earth permanent magnets and other rare earth-based advanced materials.

“This innovative US-to-Europe supply chain will supplement Neo’s existing rare earth supply from our long-time Russian supplier,” NEO’s CEO Constantine Karayannopoulos said.

“It will enable Neo to expand value-added rare earth production in Estonia to meet growing demand in Europe for these materials.”

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Story by ProactiveInvestors