Energy Fuels’ Utah-produced Terbium Oxide Qualifies for Magnet Production in Japan
The qualified material enhances heat resistance in EV traction motors, marking a step toward domestic supply chain integration.
Energy Fuels announced that its terbium oxide, produced at the White Mesa Mill in Utah, has passed qualification requirements for use in permanent magnets by a leading Japan-based manufacturer, a component critical to the performance of electric vehicle traction motors.
What Happened
The Japan-based manufacturer, identified by Energy Fuels as one of the world’s largest outside China, confirmed the material meets specifications for commercial magnet production without further validation steps. This approval follows earlier qualifications for neodymium-praseodymium (NdPr) and dysprosium oxides with South Korean manufacturers. Energy Fuels first produced a kilogram of 99.9% pure terbium oxide at pilot scale in March 2026.
Why It Matters
Terbium is a heavy rare earth element essential for improving the heat resistance of neodymium-iron-boron (NdFeB) magnets, which drive EV traction motors. Along with dysprosium, it maintains magnetic coercivity as motor operating temperatures rise, directly impacting vehicle efficiency and durability. Benchmark Mineral Intelligence data indicates terbium oxide trades at approximately $5.5 million per tonne delivered into Europe, reflecting its scarcity and limited Western production capacity.
The Bottom Line
This qualification advances Energy Fuels’ rare earth supply chain efforts, pending acquisitions of Australian Strategic Materials and Vacuumschmelze, which the company expects will establish it as a vertically integrated producer of rare earth permanent magnets in the US and Europe.
