Ucore Rare Metals Secures $18.4M Defense Funding for Rare Earth Production Expansion
- Ucore Rare Metals secured an $18.4 million DoD funding award for its RapidSX™ machine construction in Louisiana.
- The funding boosts Ucore's total support to $22.4 million, enhancing domestic rare earth supply chain efforts.
- Ucore plans to start commercial production of rare earth oxides by 2026, amid growing global demand.
Ucore Rare Metals Secures Major Defense Funding for Rare Earth Production
Ucore Rare Metals Inc. has achieved a pivotal milestone by securing an $18.4 million follow-on production award from the U.S. Department of Defense (DoD). This financing marks the largest agreement in the company’s history, bringing the total support under its Other Transaction Agreement (OT Agreement) with the U.S. Army Contracting Command-Orlando to $22.4 million (approximately CA$30.7 million). The funding is specifically allocated for the construction of Ucore’s first commercial RapidSX™ machine and the associated infrastructure at its Strategic Metals Complex (SMC) in Alexandria, Louisiana. This initiative represents a significant step towards bolstering the domestic supply chain for rare earth elements (REEs), which are critical for various advanced technologies and defense applications.
The project aligns with the DoD’s Industrial Base and Sustainability program, emphasizing the importance of developing a robust domestic supply of rare earth materials. Ucore's technological innovation, the RapidSX™ process, aims to enhance the efficiency and effectiveness of REE separation, which is crucial given the increasing demand for these materials in high-tech industries. Following a groundbreaking ceremony held on May 29, 2025, with the participation of government officials, Ucore is set to begin domestic commercial production of rare earth oxides by 2026. This timeline underscores the urgency and strategic priority of establishing a reliable domestic source of rare earths amidst global supply chain challenges.
The amended OT Agreement, signed on May 22, 2025, is a testament to Ucore’s commitment to advancing its RapidSX™ technology, which first received attention in June 2023 when the company secured an initial $4 million funding to demonstrate its feasibility. In addition to the significant U.S. support, Ucore has also acquired CA$4.28 million from the Canadian government to further evaluate the RapidSX™ technology. Furthermore, the company has entered into a non-binding Letter of Intent with Louisiana Economic Development, potentially unlocking additional incentives valued at $15 million, thereby reinforcing Ucore’s position in the growing rare earths market.
In conclusion, Ucore Rare Metals Inc. stands at the forefront of a critical industry, poised to contribute significantly to the domestic production of rare earth elements through innovative technology and strategic partnerships. The substantial backing from the U.S. DoD not only enhances Ucore’s operational capabilities but also reflects the increasing recognition of the strategic importance of rare earth elements in national defense and technological advancement. As the company moves towards its production goals, it positions itself as a key player in the future of the rare earth supply chain.