Ucore Secures $18.4 Million Defense Contract for Louisiana Rare Earth Processing Facility
TL;DR
Ucore Rare Metals secures $18.4 million DoD award for commercial-scale rare earth separation system, gaining logistical and tax advantages.
Ucore's funding supports engineering, permitting, and construction of a RapidSX(TM) machine for rare earth oxide processing starting in 2026.
Ucore aims to establish a domestic supply chain for critical minerals, disrupting China's control, and enhancing the North American REE supply chain.
Groundbreaking ceremony held for Ucore's facility in Louisiana, advancing technology to process rare earth oxides and create a sustainable supply chain.
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Ucore Rare Metals has finalized a significant contract with the U.S. Department of Defense to develop its first commercial-scale RapidSX™ rare earth separation system in Alexandria, Louisiana. The $18.4 million award brings the company's total non-repayable funding under its existing agreement to $22.4 million. This substantial investment underscores the strategic importance of establishing domestic capabilities in rare earth processing, particularly given current international supply chain vulnerabilities.
The project aims to construct a rare earth oxide processing facility capable of operational readiness by the second half of 2026. A groundbreaking ceremony held on May 29 was attended by local, state, and federal leaders, highlighting the national significance of developing domestic rare earth mineral processing capabilities. Located within a Foreign Trade Zone, the facility offers logistical and tax advantages that could potentially reduce operational costs and enhance competitive positioning against international competitors.
The project represents a significant step toward reducing international dependencies in critical mineral supply chains, particularly challenging the current market dominance of the People's Republic of China. By investing in innovative separation technologies like RapidSX™, Ucore is positioning itself as a potential key player in the critical minerals ecosystem. The investment signals growing national interest in developing domestic capabilities for extracting and processing rare earth elements, which are crucial for advanced technologies in defense, electronics, and renewable energy sectors.
Ucore's strategic approach includes establishing processing facilities across North America, with plans for additional Strategic Metal Complexes in Canada and Alaska. The company's long-term vision includes developing its 100% controlled Bokan-Dotson Ridge Rare Heavy REE Project in Southeast Alaska. This comprehensive strategy demonstrates a commitment to creating a resilient North American supply chain for critical minerals essential to national security and technological advancement.
Curated from InvestorBrandNetwork (IBN)
