Why Rare Earth Projects Fail-According to One of the Few People Who Actually Builds Them

Apr 24, 2026

3 minute read.

Highlights

  • Engineer Tommee LaRochelle reveals why most rare earth projects fail: they prove the chemistry works but discover too late they can't extract profitably, advocating for flipping the model to start with economics first.
  • Success hinges on flowsheets and impurities management, not resource size—rare earth separation is complex and deposit-specific, requiring disciplined process design where most projects quietly fail.
  • Critical bottlenecks include global talent scarcity in rare earth processing expertise and capital flowing to hype-driven projects rather than technically sound ones with execution credibility.

This Rare Earth Exchanges™ video interview (opens in a new tab) spotlights Tommee LaRochelle (opens in a new tab)—an engineer, not a promoter—offering a rare, inside look at why rare earth projects fail and how to fix them.

If you want to understand why most rare earth projects never make it to production, don’t listen to promoters—listen to the engineers who’ve watched them fail. In a compelling Rare Earth Exchanges™ interview (opens in a new tab), Tommee LaRochelle, CTO and co-founder of L3 Process Development (opens in a new tab), delivers exactly that: a candid, technically grounded breakdown of why the industry keeps missing—and how it can finally get it right.

LaRochelle is not a theorist. With a PhD in Mining Engineering from Virginia Tech (opens in a new tab), an MBA in technology commercialization, and years of leading process engineering and due diligence across critical metals projects, he sits at the intersection of chemistry, capital, and execution. His firm works where most projects succeed or fail: process design, flowsheets, and scale-up.

The Hard Truth: Projects Don’t Fail in the Lab—They Fail in the Economics

LaRochelle’s central insight is blunt:

Most projects prove they can extract rare earths—then discover they can’t do it profitably.

Traditional mining follows a flawed sequence:

  1. Prove the chemistry works
  2. Design the process
  3. Then check economics

By then, it’s often too late. Capital is spent. Reality sets in. Projects stall.

L3 flips the model: start with what could be economic—then prove it works.

Flowsheets, Not Headlines, Decide the Outcome

A “flowsheet” is the step-by-step system that turns ore into a saleable product. It’s also where most projects quietly fail.

Why? Because rare earths are mostly impurities management problems:

  • Only a small fraction of ore is valuable
  • Every deposit behaves differently
  • Separation is complex, slow, and expensive

Get the flowsheet wrong, and the project is dead—no matter how big the resource.

The Real Bottlenecks: Talent and Capital Discipline

Two underappreciated constraints emerge:

  • Talent scarcity: Only a handful of engineers globally have rare earth processing expertise. China has built entire academic pipelines. The West has not.
  • Capital misallocation: Money often flows to hype-driven projects, while technically sound ones struggle. As LaRochelle puts it, some companies are “mining investors, not resources.”

Why This Interview Matters

This is not a promotional conversation. It is a ground-level reality check from someone who has designed, tested, and evaluated what actually works. For investors, policymakers, and industry watchers, the takeaway is clear: rare earth success is not about discovery—it’s about disciplined execution.

Final Thoughts

Tommee LaRochelle brings something rare to the rare earth conversation: credibility rooted in execution. If you want to understand why the West continues to struggle—and what it will take to fix it—this interview is essential viewing. Follow the link to YouTube (opens in a new tab).

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By Daniel

Inspired to launch Rare Earth Exchanges in part due to his lifelong passion for geology and mineralogy, and patriotism, to ensure America and free market economies develop their own rare earth and critical mineral supply chains.

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Why rare earth processing projects fail & how to fix them - engineer Tommee LaRochelle explains flowsheets, economics & execution over hype. (read full article...)

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