Nanoscale's patented rare earth metal-making technology has
potential to revolutionize rare earth metal making by reducing
costs, significantly reducing greenhouse gas emissions, and
reducing energy use
LAKEWOOD, Colo., Dec. 15, 2021 /PRNewswire/ - Energy Fuels
Inc. (NYSE American: UUUU) (TSX: EFR) ("Energy Fuels" or the
"Company") is pleased to announce the execution of a Memorandum
of Understanding ("MOU") with Nanoscale Powders LLC
("NSP") for the development of a novel technology (the
"Technology") for the production of rare earth element
("REE") metals (the "Project"). We believe this
Technology, which was initially developed by NSP, and will be
advanced by the Company and NSP working together, has the potential
to revolutionize the rare earth metal making industry by reducing
costs of production, reducing energy consumption, and significantly
reducing greenhouse gas ("GHG") emissions. Producing REE
metals and alloys ("REE Metals") is a key step in a fully
integrated REE supply chain, after production of separated REE
oxides ("REE Oxides") and before the manufacture of
neodymium iron boron ("NdFeB") magnets used in electric
vehicles ("EVs"), wind generation and other clean energy and
advanced technologies.
Energy Fuels is quickly building a new, environmentally friendly
REE supply chain in the United
States, and the Project with NSP represents an exciting
opportunity to significantly improve the REE metal-making process
and potentially provide Energy Fuels with a competitive advantage
in the REE supply chain. At its White Mesa Mill (the "Mill")
in Utah, the Company is currently
producing mixed REE carbonate ("REE Carbonate") while
recovering uranium from natural monazite sands ("Monazite")
which are produced as a low-cost byproduct of heavy mineral sands
mining in the U.S. and around the globe. Energy Fuels' REE
Carbonate is the most advanced REE product being produced in the
U.S. today. The Company is also moving quickly toward producing REE
Oxides at the Mill using proven solvent extraction ("SX")
technologies. The Mill has over 40 years of experience producing
uranium and vanadium oxides using SX technology.
Founded in 2008, NSP originally focused on producing solar
quality silicon metals and refractory metal powders, eventually
turning its attention to the production of titanium and alloy
powders through sodium reduction. More recently, NSP has developed
a process to create REE Metals from REE Oxides through molten
sodium reduction of anhydrous REE chloride materials in a process
similar to the Kroll process (called the "Hunter Titanium Process")
which is used for the production of titanium metals through sodium
reduction.
The production of REE Metals utilizing the Technology will
involve feeding anhydrous REE chloride materials, which are free of
water, into a molten sodium bath. A rapid reaction takes place
between the molten sodium and the REE chlorides. The process is
highly exothermic, releasing energy, so the molten sodium acts to
control the rate of the reaction. The reaction products are REE
Metal and sodium chloride, commonly known as salt.
The NSP sodium reduction of REE Metals has several advantages
over the industry standard REE metal making method, which utilizes
electrolytic reduction of REE oxides in molten lithium fluoride/REE
fluoride baths. First, the NSP process does not have any associated
air emissions, and therefore presents a significant improvement
over the current technology, which emits carbofluoromethane (CF4)
gas, which is a powerful GHG. Second, current estimates indicate
that the NSP process is significantly cheaper to operate than the
conventional electrolytic methods, because it does not consume
graphite crucible materials and utilizes significantly less energy
and labor. Finally, the NSP process requires anhydrous chloride
feeds, which we believe can be generated directly from rich liquor
streams coming from the Mill's planned SX circuit. This could
eliminate the need for oxalate precipitation and calcination of
materials destined for REE metal making. As a result of these
factors, operating cost savings are currently estimated to
potentially be several times less than conventional REE
metal-making methods.
As with any new technology, risks are present which must be
evaluated and addressed, including successfully creating anhydrous
chloride feeds at a commercial scale with the associated risk of
elevated levels of oxygen in the final product, and the risk of
being able to successfully remove and consolidate final REE Metal
products.
NSP holds two U.S. patents and one pending patent application
for the Technology, under which it has proven the ability to
produce REE Metals on a kilogram batch scale basis at the U.S.
Department of Energy's Technology Readiness Level ("TRL") 5.
Energy Fuels' initial investment in the Project is intended to
advance the Technology to allow for: (i) the continuous,
pilot-scale production of 10 kilograms per hour of
neodymium-praseodymium ("NdPr") metal that meets typical
specifications for NdFeB magnets at TLR Level 7; (ii) the separate
build of a batch reactor able to produce key minor magnet metals
(e.g., dysprosium, terbium); and (iii) the demonstration of
samarium-cobalt alloy production. The Project will be directed by
Energy Fuels with technical support from other research firms and
institutions as required.
Under the MOU, the parties will negotiate and enter into binding
agreements ("Definitive Agreements") that govern the
Project, including the creation of a new entity that will hold an
exclusive license to the Technology as it relates to REE Metal
making. The MOU contemplates a phased development of the Project to
scale-up to the production of 1,000 metric tonnes of one or more
REE Metals per year. Energy Fuels will have the right to earn up to
a 100% interest in the entity and Technology, as it relates to REE
Metal making, by making the following capital investments:
- US$250,000 within five (5)
business days after execution of the MOU;
- US$250,000 within five (5)
business days after execution and delivery of the Definitive
Agreements;
- US$1 million within five (5)
business days after execution and delivery of the Definitive
Agreements to be applied to the Project's 2022 budget and work
plan; and
- Energy Fuels will fund all future approved annual budgets as
may be required for commercialization of the Project, up to a
maximum additional expenditure of US$8.5
million over three (3) years, totaling US$10 million for the Project.
Upon the successful completion of the Project and the
$10 million investment, Energy Fuels
will control the exclusive rights to the entity and the Technology
as it relates to REE Metal making. Energy Fuels will also have the
right to cease funding at various decision points during the
Project, at which point Energy Fuels will hold a percentage of the
new entity and Technology, proportional to its amount contributed.
If Energy Fuels ceases funding prior to earning 100% of the
Technology, NSP will have the right in certain circumstances to
acquire Energy Fuels' interest in the entity and Technology by
reimbursing Energy Fuels for its expenditures on the Project.
Mark S. Chalmers, President and
CEO of Energy Fuels stated: "Metal-making is a critical step in the
rare earth supply chain. Energy Fuels has already restored monazite
'crack-and-leach' capabilities to the U.S. at our White Mesa Mill
in Utah, where today we are
producing a high-purity mixed rare earth carbonate, which is ready
for separation. No other company in the U.S. is currently producing
a high-purity REE product ready for separation at commercial
levels. We are also quickly moving toward adding solvent extraction
separation equipment at the Mill and associated permitting that
will allow us to produce commercial separated rare earth oxide
powders in the coming years. In fact, we are already well advanced
with piloting these capabilities on a continuous 24/7 basis at the
Mill today.
"The next step in rare earth processing and refining is turning
those separated rare earth oxide powders into usable rare earth
metals and alloys, particularly NdPr metal needed for NdFeB magnets
used in EVs, wind generation and other technologies. We are
interested in Nanoscale Powders' technology because we believe it
has the potential to produce REE metals at lower cost, using less
energy, and producing significantly less greenhouse gas emissions
than conventional REE metal making methods. If successful,
Nanoscale's metal-making technology could be orders of magnitude
safer and less expensive than the current established technology.
This is the type of technology we as Americans need to develop to
produce advanced rare earth materials in a cost-competitive manner,
while achieving the highest standards of protection of public
health, safety, and the environment. Nanoscale Powders has proven
their technology on a small scale, and we look forward to working
with them to advance the technology to pilot scale, and then to
commercial scale in the coming years. Our relationship with
Nanoscale Powders demonstrates Energy Fuels' commitment to fully
integrating a domestic REE processing supply chain in the most
optimal and environmentally prudent manner possible."
Implementation of this initiative is subject to the execution of
Definitive Agreements.
ABOUT ENERGY FUELS
Energy Fuels is a leading U.S.-based uranium mining company,
supplying U3O8 to major nuclear
utilities. Energy Fuels also produces vanadium from certain of its
projects, as market conditions warrant, and is ramping up to
commercial-scale production of REE carbonate. Its corporate offices
are in Lakewood, Colorado,
near Denver, and all of its assets and employees are
in the United States. Energy
Fuels holds three of America's key uranium production centers: the
White Mesa Mill in Utah, the Nichols Ranch in-situ recovery
("ISR") Project in Wyoming, and the Alta Mesa ISR
Project in Texas. The White Mesa Mill is the only conventional
uranium mill operating in the U.S. today, has a licensed capacity
of over 8 million pounds of U3O8 per year,
has the ability to produce vanadium when market conditions warrant,
as well as REE carbonate from various uranium-bearing ores. The
Nichols Ranch ISR Project is on standby and has a licensed capacity
of 2 million pounds of U3O8 per year.
The Alta Mesa ISR Project is also on standby and has a licensed
capacity of 1.5 million pounds of U3O8 per
year. In addition to the above production facilities, Energy Fuels
also has one of the largest NI 43-101 compliant uranium resource
portfolios in the U.S. and several uranium and uranium/vanadium
mining projects on standby and in various stages of permitting and
development. 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." Energy Fuels' website
is www.energyfuels.com.
ABOUT NANOSCALE
Nanoscale Powders LLC (www.nanoscalepowders.com) is a
Boston-based, privately held
company, operating patented processes capable of producing a wide
range of engineered metal, alloy and ceramic powders and
powder-derived products, including solids as well as
additive-manufacturing powders. For further information, please
contact Andrew.matheson@nanoscalepowders.com.
CAUTIONARY STATEMENTS REGARDING FORWARD LOOKING
STATEMENTS
This news release contains "forward-looking information"
within the meaning of applicable securities laws in the United States and Canada. Forward-looking information may relate
to future events or future performance of Energy Fuels. All
statements in this release, other than statements of historical
facts, with respect to Energy Fuels' objectives and goals, as well
as statements with respect to its beliefs, plans, objectives,
expectations, anticipations, estimates, and intentions, are
forward-looking information. Specific forward-looking statements in
this discussion include, but are not limited to, the following: any
expectation that the Project will be successful; any expectation
that the Project has the potential to revolutionize the rare earth
metal making industry by reducing costs of production, reducing
energy consumption and significantly reducing greenhouse gas
emissions; any expectation that Energy Fuels will be successful
in integrating a domestic REE processing supply chain in the
most optimal and environmentally prudent manner possible or at all;
any expectation that Energy Fuels will move quickly
toward producing separated REE Oxides at the Mill using proven SX
technologies or at all; any expectation that the Technology is a
superior technology for the production of REE Metals; any
expectation that application of the Technology does not result in
any associated air emissions and therefore presents a significant
improvement over the current technology; any expectation that the
Technology is significantly cheaper to operate than the
conventional electrolytic methods or that operating cost savings
are potentially several times less than conventional methods; any
expectation that Energy Fuels' initial investment in the Project
will advance the Technology to allow for the continuous,
pilot-scale, production of 10 kilograms per hour of NdPr metal that
meets typical specifications for NdFeB magnets at TLR Level 7 or
that the other objectives of the Project will be achieved; any
expectation that the parties will successfully negotiate and enter
into binding Definitive Agreements such that the Project will
proceed past the MOU stage; any expectation that Energy Fuels will
earn a 100% interest in the Technology as it relates to REE Metal
making; and any expectation that the Technology will be advanced to
commercial scale in the coming years. Often, but not always,
forward-looking information can be identified by the use of words
such as "plans", "expects", "is expected", "budget", "scheduled",
"estimates", "continues", "forecasts", "projects", "predicts",
"intends", "anticipates" or "believes", or variations of, or the
negatives of, such words and phrases, or state that certain
actions, events or results "may", "could", "would", "should",
"might" or "will" be taken, occur or be achieved. This information
involves known and unknown risks, uncertainties and other factors
that may cause actual results or events to differ materially from
those anticipated in such forward-looking information.
Factors that could cause actual results to differ materially
from those anticipated in these forward-looking statements include
risks associated with: technical difficulties; processing
difficulties and upsets; the risk of elevated levels of
oxygen in the final product; the risk of being able to successfully
remove and consolidate final REE Metal products; licensing,
permitting and regulatory delays; litigation risks; competition
from others; and market factors, including future demand for and
prices realized from the sale of REEs and REE Metals.
Forward-looking statements contained herein are made as of the date
of this news release, and Energy Fuels 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. Energy Fuels assumes no obligation to update the
information in this communication, except as otherwise required by
law.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/energy-fuels-announces-strategic-venture-with-nanoscale-powders-to-develop-innovative-rare-earth-metal-making-technology-301445079.html
SOURCE Energy Fuels Inc.