Ucore 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 rare earth processing capabilities. The project aims to construct a rare earth oxide processing facility capable of achieving operational readiness by the second half of 2026, marking a crucial timeline for establishing American independence in critical mineral supply chains.

The strategic importance of this development was underscored by a recent groundbreaking ceremony attended by local, state, and federal leaders, demonstrating broad political support for reducing international dependencies in critical mineral processing. Located within a Foreign Trade Zone, the Louisiana facility offers significant logistical and tax advantages that could potentially reduce operational costs and enhance competitive positioning against international competitors. This geographical advantage positions the facility to serve as a cornerstone in America's strategy to challenge the current market dominance of the People's Republic of China in rare earth element production and processing.

Ucore's comprehensive 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 supply chain for these essential materials. This multi-faceted approach represents a significant departure from traditional reliance on overseas suppliers and reflects growing recognition of the strategic importance of domestic critical mineral capabilities.

The Department of Defense investment signals escalating national interest in developing domestic capabilities for extracting and processing rare earth elements, which are crucial components in advanced technologies spanning defense systems, electronics manufacturing, and renewable energy infrastructure. By investing in innovative separation technologies like RapidSX™, Ucore is positioning itself as a potential key player in the evolving critical minerals ecosystem. This technological advancement could provide more efficient and environmentally sustainable processing methods compared to conventional approaches, potentially setting new industry standards for rare earth element separation and purification.

The development comes at a critical juncture as global competition for rare earth resources intensifies and supply chain vulnerabilities become increasingly apparent. The establishment of domestic processing capacity addresses longstanding concerns about reliance on single-source foreign suppliers, particularly given the essential role these materials play in national security applications and emerging technologies. The project's successful implementation could serve as a model for future public-private partnerships aimed at strengthening America's industrial base and technological independence in strategically important sectors.