The Department of War, US Office of Strategic Capital (OSC) has signed a USD 725-million conditional loan commitment with US critical minerals company Energy Fuels, Energy Fuels announced on Thursday.
The financing would support the expansion of critical minerals processing at Energy Fuels’ White Mesa Mill in Utah and a second rare earth metals and alloy facility to be constructed in the US. The loan aims to expand domestic rare earth elements processing and reduce reliance on China, and would have a duration of 20 years.
Energy Fuels said proceeds would support eligible project development, processing capacity, supply chain integration, working capital and other strategic priorities. The company’s shares rose 9.25% in morning trading in New York following the announcement, Reuters reported.
“The US Government has been steadfast in its support of critical materials security, and we appreciate the OSC’s financial support at this important time as we develop our vertically integrated supply chain. Recent events have underscored the urgency of building durable, transparent and allied supply chains for critical materials,” said Ross Bhappu, president and CEO of Energy Fuels.
Investment interest in alternative rare earth supply chains has increased globally to counter China’s dominance in the space and the country’s recent curb on exports of rare earth magnets, which are key inputs for wind turbines, electric motors, computing equipment, robotics and medical devices.
A September 2025 executive order signed by US President Donald Trump authorised the use of “Department of War” as a secondary name for the US Department of Defense.
Energy Fuels is a US critical minerals company focused on uranium, rare earth elements, heavy mineral sands, vanadium and strategic materials. Its White Mesa Mill in Utah is the only conventional uranium mill operating in the US and is being developed as a platform to process monazite into rare earth oxides.