Highlights
- Ucore receives $18.4M non-repayable DoD award to advance rare earth element processing capabilities in North America
- RapidSXT technology demonstrates efficiency in separating heavy and light rare earth elements, supporting U.S. efforts to reduce foreign mineral dependencies
- Strategic Metals Complex in Louisiana aims to achieve production readiness of rare earth products by second half of 2026
In a significant move to bolster North America’s rare earth element (REE) processing capabilities, Ucore Rare Metals Inc. on June 2 announced (opens in a new tab) a substantial $18.4 million award from the U.S. Department of Defense (DoD). This funding, part of a broader $22.4 million agreement under the Department of Defense’s Other Transaction Agreement (OTA) with the U.S. Army Contracting Command-Orlando, is non-repayable and aims to advance the construction of Ucore’s Strategic Metals Complex (SMC) in Alexandria, Louisiana.
The primary objective of this award is to facilitate the development of Ucore’s first commercial-scale RapidSX™ machine and the supporting infrastructure necessary for REE processing. The RapidSX™ technology, an innovative solvent extraction method, has demonstrated efficiency and scalability in separating both heavy and light REEs. This advancement is crucial as the U.S. seeks to reduce its dependence on foreign sources, particularly China, which currently dominates the global rare earth element (REE) supply chain.
Ucore’s Commercialization and Demonstration Facility (CDF) in Kingston, Ontario, has played a crucial role in testing and refining the RapidSX process. The facility has completed over 2,600 hours of operation, processing more than three tonnes of REE feedstock and producing high-purity outputs. These results have validated the technology’s potential for commercial application.
The construction of the SMC in Louisiana marks a significant step in establishing a domestic rare earth element (REE) supply chain. The facility is designed to house multiple RapidSX machines, with the initial setup capable of supporting up to three units within its 80,800 square-foot space. The goal is to achieve early production readiness of salable individual rare earth element (REE) products by the second half of 2026.
This initiative aligns with broader U.S. efforts to secure critical mineral supply chains. The National Defense Authorization Act of 2024 highlights the strategic importance of REEs, with provisions that ban the use of rare earth imports from China in the defense sector, effective January 2027.
Ucore’s collaboration with the Canadian government further underscores its commitment to developing a comprehensive North American rare earth element (REE) processing infrastructure. A C$4.28 million light rare earth element (REE) demonstration project is underway, scheduled for completion by mid-2025, complementing the heavy REE processing capabilities being established in Louisiana.
The groundbreaking ceremony for the SMC, held on May 29, 2025, was attended by representatives from various local, state, federal, and Department of Defense (DoD) agencies, underscoring the project’s significance. As Ucore progresses with the construction and commissioning of the SMC, it stands at the forefront of efforts to create a resilient and secure domestic supply chain for critical rare earth elements (REEs), essential for both defense and commercial applications.
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