Department of War’s Office of Strategic Capital signs $725 million conditional loan commitment with Energy Fuels

The United States Department of War’s Office of Strategic Capital (OSC) has issued a $725 million conditional loan commitment to Energy Fuels, Inc. to expand the company’s domestic processing of rare earth elements, with the financing intended to help launch a new U.S.-based rare earth separation and metallization facility alongside additional private capital.

The partnership is aligned with President Trump’s directive to secure a resilient domestic rare earth supply chain. Energy Fuels, which has historically focused on uranium production, plans to move deeper into the midstream of the rare earths sector by adding separation and metallization capabilities—processes that connect raw extraction to permanent magnet manufacturing. The company’s increased output is intended to support permanent magnet facilities across the broader U.S. industrial base and strengthen supply chains for other specialty defense and industrial products.

“OSC is deeply focused on supporting domestic processing for critical minerals and rare earths. Energy Fuels’ expansion into rare earth midstream processing represents a key solution to a national bottleneck that needs to be rapidly addressed. OSC’s support to Energy Fuels represents an important step in strengthening the full mine-to-magnet supply chain, specifically at the midstream stage, in the United States,” said David A. Lorch, Director of the Office of Strategic Capital and Senior Advisor to Deputy Secretary of War Steve Feinberg.

Energy Fuels currently operates a uranium processing facility and rare earth oxide separation facility at the White Mesa Mill in Utah. The loan commitment remains conditional, with the company required to complete customary steps before financial close, including financial, legal, technical, and other due diligence.

“The Office of Strategic Capital is continuing to supercharge our ability to onshore rare earth processing,” said the Honorable Emil Michael, Under Secretary of War for Research and Engineering. “This partnership drives an aggressive effort to close vulnerabilities in our industrial base and secure a resilient American supply chain for rare earth elements.”

OSC reports that in FY26 it has committed more than $5 billion in debt financing and mobilized over $11 billion in total capital from public and private sources in support of the American industrial base.