Ucore Rare Metals Secures $18.4 Million Defense Contract for Louisiana Rare Earth Processing Facility

Ucore Rare Metals has finalized a significant $18.4 million contract with the U.S. Department of Defense to develop its first commercial-scale RapidSX™ rare earth separation system in Alexandria, Louisiana. This award brings the company's total non-repayable funding under its existing agreement to $22.4 million, representing a substantial government investment in domestic critical mineral processing capabilities. The project aims to construct a rare earth oxide processing facility capable of achieving operational readiness by the second half of 2026, establishing a timeline for when the United States could begin reducing its reliance on foreign rare earth supplies.

The strategic importance of this development was underscored by a recent groundbreaking ceremony attended by local, state, and federal leaders who recognized the national security implications of establishing domestic rare earth processing capacity. Located within a Foreign Trade Zone, the facility offers significant logistical and tax advantages that could potentially reduce operational costs and enhance competitive positioning against international competitors. This geographical positioning within https://www.ucore.com strategic infrastructure represents a key factor in the project's long-term viability and economic sustainability.

The project represents a critical step toward reducing international dependencies in critical mineral supply chains, particularly challenging the current market dominance of the People's Republic of China, which currently controls approximately 80% of global rare earth processing capacity. This strategic move aligns with broader U.S. government initiatives to secure supply chains for minerals essential to national defense, advanced technology, and renewable energy sectors. Rare earth elements are crucial components in everything from military hardware and electric vehicles to smartphones and wind turbines, making domestic production capacity a matter of economic and national security.

Ucore's strategic approach extends beyond the Louisiana facility, with plans for establishing additional processing facilities across North America through its network of 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, creating an integrated North American rare earth supply chain. By investing in innovative separation technologies like RapidSX™, Ucore is positioning itself as a potential key player in the critical minerals ecosystem that could fundamentally reshape global supply dynamics.

The Department of Defense investment signals growing national interest in developing domestic capabilities for extracting and processing rare earth elements, reflecting heightened awareness of supply chain vulnerabilities exposed during recent global disruptions. This funding commitment demonstrates the U.S. government's recognition that rare earth elements represent strategic resources requiring domestic production capacity to ensure technological leadership and national security. The successful implementation of this project could establish a blueprint for future public-private partnerships aimed at securing America's position in the global critical minerals market while reducing dependence on geopolitical competitors.