Highlights

• Aclara Resources is pursuing US government financing to establish rare earth mining operations in Chile and Brazil.
• The company aims to begin commercial extraction from ionic clay deposits by 2028 and develop US-based processing facilities.
• The initiative is strategically positioned to reduce Western dependence on China's rare earth supply chains.

Aclara Resources (opens in a new tab), the Toronto-listed rare earths “mine-to-magnet” company majority-owned by the Hochschild Group (opens in a new tab), is in active discussions with U.S. government agencies for financing a $1.5 billion initiative to mine heavy rare earths in Chile and Brazil and establish U.S.-based processing facilities. As first reported by Bloomberg and covered by Mining Technology (opens in a new tab), the funding could come in the form of loans or grants from the Department of Defense, the Department of Energy, and the U.S. International Development Finance Corporation.

Aclara CEO Ramon Barua (opens in a new tab) confirmed the company has submitted proposals and plans to present its case in Washington. The move is framed as a strategic response to Western efforts to reduce dependence on China’s near-total dominance of rare earth supply chains—particularly in magnet materials critical for electric vehicles and wind turbines.

The company plans to begin commercial extraction from ionic clay deposits in Latin America by 2028. Site evaluations for U.S.-based refining operations are underway, with Texas, Louisiana, South Carolina, and Virginia under consideration. Aclara’s existing partnership with German magnet-maker Vacuumschmelze (opens in a new tab)—set to build a facility in South Carolina—positions it as a complementary partner to the Pentagon’s existing rare earth supplier, MP Materials.

Barua emphasized that investors are now prioritizing project timelines over pricing, amid growing geopolitical risks and China’s tightening of export controls. He added that Aclara’s materials reflect a “truer” market value than the depressed prices often reported in China-dominated indices.

In April, Aclara inaugurated a semi-industrial pilot facility in Goiás, Brazil, further de-risking the project’s technical pathway.

Unanswered but Crucial Questions for Investors:

• Which U.S. agencies are most likely to fund this initiative, and on what terms?
• Will the processing plant prioritize heavy rare earth separation, or remain mixed REE?
• How does Aclara plan to handle environmental scrutiny, given clay-based mining’s water use?
  

  Will U.S. policymakers consider Aclara’s foreign ownership a liability in strategic planning?

As the U.S. races to decouple its critical mineral supply chain from China, Aclara’s binational strategy could mark a new model—if government support materializes and timelines are met.

REEx Take: Aclara is not yet revenue-generating, but its alignment with U.S. defense and energy goals, plus an early-stage pilot plant, makes it a rare earth play worth watching.