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 rare earth processing capabilities to secure supply chains for critical defense and technology applications.
The project aims to construct a rare earth oxide processing facility capable of operational readiness by the second half of 2026. Located within a Foreign Trade Zone, the facility offers logistical and tax advantages that could potentially reduce operational costs and enhance competitive positioning. The strategic location and timing of this development come at a critical moment when the United States seeks to reduce international dependencies in critical mineral supply chains, particularly challenging the current market dominance of the People's Republic of China.
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. By investing in innovative separation technologies like RapidSX™, Ucore is positioning itself as a potential key player in the critical minerals ecosystem. The company's strategic approach includes establishing processing facilities across North America, with plans for additional Strategic Metal Complexes in Canada and Alaska.
Ucore's long-term vision includes developing its 100% controlled Bokan-Dotson Ridge Rare Heavy REE Project in Southeast Alaska, further strengthening North American rare earth supply chain resilience. The successful implementation of this Louisiana facility could serve as a model for future domestic rare earth processing operations, potentially transforming how the United States sources and processes these essential materials for national security and technological advancement.
