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

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 the defense establishment places on developing domestic rare earth processing capabilities.

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 broad political support for establishing domestic critical mineral processing infrastructure. The timing coincides with increasing geopolitical tensions and supply chain vulnerabilities that have exposed the risks of relying on foreign sources for essential materials.

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. This strategic shift comes as Western nations increasingly recognize the national security implications of relying on potentially adversarial nations for materials essential to defense systems and advanced technologies.

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, creating a comprehensive North American rare earth supply chain. This distributed approach mitigates risk while maximizing regional advantages across the continent.

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 successful implementation of this facility could serve as a model for other critical mineral processing projects and help establish North America as a competitive force in the global rare earth market.