By Jill McLaughlin

Mining company Energy Fuels announced March 26 it had successfully produced its first kilogram of terbium oxide at its Utah project, becoming the first U.S. company to produce the compound domestically in decades.

The company reported achieving a purity of 99.9 percent of the terbium oxide—a sought-after rare earth compound needed for batteries and electronics—at its White Mesa Mill using monazite ore sourced in the United States.

“This success proves we can process and produce high purity ‘heavy’ rare earth oxides economically and at scale in the U.S.,” said Energy Fuels CEO Mark Chalmers. “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.”

Terbium oxide is a dark brown powder compound primarily used in LED and fluorescent lighting, and in magnets for electric vehicles and electronics.

The announcement follows the company’s report that it had also produced nearly 30 kilograms of 99.9 percent pure dysprosium oxide, another critical “heavy” rare earth oxide used in permanent magnets.

Energy Fuels said the terbium oxide has been requested by multiple magnet manufacturers and other manufacturers around the world.

Adding dysprosium oxide and terbium oxide to permanent magnets makes a “superior product” for electric vehicles, hybrids, drones, robotics, and defense technologies by improving operational capabilities in high heat conditions, and enables smaller, lighter, and more powerful motors, according to Energy Fuels.

The company expects the mill to continue producing terbium oxide at an approximate rate of one kilogram per week at its existing pilot circuit.

“This is just another example of the outstanding team the company has at both the Mill, and elsewhere, as the company continues to advance our strategy of becoming a world significant critical material producer,” Chalmers said.

China currently dominates the global supply of dysprosium oxide and terbium oxide, controlling about 99 percent of the production of the rare earth compounds.

Rare earth permanent magnets are essential components in a range of defense equipment, including the F-35 Lightning II aircraft, submarines, and drones. They are also used to generate electricity for electronic systems in aircraft and to focus microwave energy in radar systems, according to the Department of War.

A cyclist rides along a dusty road with dozens of factories processing rare earths, iron, and coal, on the outskirts of Baotou City in Inner Mongolia, northwestern China, on April 21, 2011. Frederic J. Brown/AFP/Getty Images

The Trump administration has taken action to prioritize building a domestic supply of critical rare earth minerals needed for defense and manufacturing in the United States.

President Donald Trump also launched a $12 billion initiative to create a mineral stockpile to counter China’s dominance in the sector.

The Department of War is building a rare earth supply chain.