November 2025
Dear Fellow Shareholders,
Over the past year, Ucore Rare Metals Inc. has dedicated itself to a single urgent goal: building a secure, Western-oriented, commercial-scale rare earth supply chain. The events of 2025 – from tightened Chinese export controls to an increased focus on defense and clean energy security – have underscored both the importance of this mission and the strength of Ucore’s position.
The Strategic Background
Rare earth permanent magnets are essential for electric vehicles, wind turbines, and modern defense systems. Western demand for magnetic rare earths is projected to nearly triple by 2035, while new supply outside of China is expected to lag by approximately 30%, leading to a significant supply gap and an estimated $40 billion market for magnetic rare earth oxides by 2035. Concurrently, China’s continued dominance and expanding export controls present a single-point-of-failure risk for Western supply chains, prompting allied governments to move from discussion to concrete action – precisely where Ucore’s strategy is focused.
RapidSX™ – our Decisive Advantage
RapidSX™ is our proprietary, modular alternative to conventional solvent extraction. Utilizing compact, computer-controlled columns, it is designed to require up to 60% less footprint, deliver approximately 3 to 7 times faster throughput, and reduce operating costs through lower labor, energy, and reagent consumption, all while achieving equilibrium in hours rather than weeks. It employs the same proven chemistry as conventional SX, with extensive test work demonstrating comparable purity and yield, but is not reliant on equipment or technology from China. This makes RapidSX particularly valuable today, enabling us to economically focus on elements China has placed under export controls, such as samarium and gadolinium, as well as high-value magnetic elements like terbium and dysprosium.
Government Support, G7 Frameworks, and Strategic Agreements
The convergence of G7 nations in their critical minerals policies is now translating into concrete programs, funding, and trade agreements that directly support Ucore’s plans, including long-term offtake agreements, strategic stockpiles, and targeted public funding for mining, refining, and midstream processing.
For Ucore, this momentum is evident in four key initiatives:
VAC / eVAC Alliance – At the recent G7 Summit in Toronto, we signed a Memorandum of Understanding with Vacuumschmelze (VAC) and eVAC Magnetics for the supply of high-purity Nd, Pr, Tb, Dy, Sm, and Gd oxides from our planned Louisiana Strategic Metals Complex (SMC) and our Kingston, Ontario facility to eVAC’s new magnet facility in the U.S. and VAC’s European operations.
Canadian “Path to Samarium and Gadolinium Security” – Also at the G7 Energy and Environment Ministers’ meeting, Ucore received conditional approval for up to CAD 36.3 million in funding from the Canadian government to establish a unique commercial processing facility in Kingston for the refining of samarium and gadolinium, thereby creating North America’s first dedicated Sm and Gd oxide production capacity for SmCo magnets. Including the CAD 4.3 million agreement announced in 2023, the potential support from the Canadian federal government for our initiatives in Ontario totals approximately CAD 40.6 million.
Offtake Agreement with the U.S. Department of Defense – Our Other Transaction Agreement (Offtake Agreement) with the U.S. Department of Defense now totals $22.4 million in non-repayable funds. These funds are designated for the detailed planning, construction of the first commercial RapidSX™ facility, and supporting infrastructure at the Louisiana SMC, with the goal of commencing production of separated rare earth oxides in the second half of 2026.
Hastings/Yangibana HoA (the “Hastings Agreement”) – As announced in our press release of October 31, 2025, we have entered into a non-binding Heads of Agreement with Wyloo and Hastings Technology Metals regarding the Yangibana Project in Western Australia. This Hastings HoA establishes a framework for a long-term supply chain of up to 37,000 tonnes of Yangibana rare earth concentrate per year and a joint evaluation of a hydrometallurgical plant in Louisiana for the production of mixed rare earth carbonate for downstream separation at the Louisiana SMC, thereby directly supporting the new critical minerals framework between the U.S. and Australia and securing additional allied feedstock for our U.S. Department of Defense-backed RapidSX™ program.
Collectively, these G7-driven frameworks, Canadian programs, U.S. Department of Defense support, and the Hastings HoA are intended to enhance project bankability, accelerate domestic supply, and reduce reliance on a single country for critical magnetic materials.
Building the Commercial Ecosystem
On the feedstock side, we are in discussions with more than 25 potential suppliers, with five (four) projects currently capable of supplying the Louisiana SMC in time for its planned Q3 2026 commissioning.
On the customer side, our alliance with VAC and eVAC enables Ucore to supply rare earth oxides to VAC’s U.S. NdFeB magnet production facilities and eVAC’s European NdFeB and SmCo magnet facilities, while Permag, a leading manufacturer of samarium-cobalt magnets for defense applications based in Lancaster, Pennsylvania, partners with Ucore to ensure a reliable supply of critical rare earths for drones, aircraft, and guided missile systems. These relationships secure feedstock and reliable, government-backed sales channels for us, allowing our planned SMCs to be aligned with established demand rather than speculative volumes.
The SMC Network and Short-Term Milestones
Our Strategic Metals Complex network will be built in phases:
- SMC #1 – Alexandria, Louisiana, will be equipped with RapidSX™ machines. The initial five machines are designed to process 2,400 to 3,000 tonnes of TREO concentrate per year into separated NdPr, Tb, and Dy, with additional machines to be added while the initial ones remain operational.
- SMC #2 – Kingston, Ontario, will host the first dedicated processing stream for samarium and gadolinium, which are critical for SmCo magnets in advanced radar, sonar, and guidance systems, as well as other defense and medical technologies – directly supported by the Canadian “NRCan and FedDev Ontario” programs.
Over the next 12 to 18 months, we anticipate the continued implementation and payment of installments under the DoD OT contract, the conversion of key Memoranda of Understanding (including VAC/eVAC and Hastings) into definitive long-term agreements, growing OEM commitments in key end markets for specific SMC production volumes, the upgrade of key feedstock MOUs into binding offtake agreements, as well as regular updates on construction progress and commissioning of the Louisiana and Kingston facilities.
Thank You
On behalf of our management team and Board of Directors, I would like to thank our employees, partners, host communities, and you – our shareholders – for your continued support. We believe Ucore is in the right place at the right time, with the right technology and partnerships, to play a pivotal role in restructuring the rare earth supply chain for the benefit of North America and allied nations.
We look forward to keeping you updated on the continued execution of our plans in the coming months.
Sincerely
Pat Ryan, P.Eng.
Chief Executive Officer
Ucore Rare Metals Inc.
Rare Earth Industry News
November 13, 2025
China planning to block U.S. military contractors from rare earth imports
November 12, 2025
US House report accuses China of minerals market interference
November 11, 2025
Finance minister says critical minerals refining is the ‘name of the game’
November 10, 2025
China Hatches Plan to Keep U.S. Military From Getting Its Rare-Earth Magnets
November 7, 2025
Bessent says new rare earth factory will cut costs, break China’s ‘chokehold’ on industry
November 3, 2025
China Has Retained Its Grip on Rare Earths Despite a U.S. Trade Truce
October 30, 2025
U.S. Names Samarium As Most Vulnerable Critical Mineral
Latest Ucore News
November 3, 2025
October 31, 2025
October 31, 2025
Ucore Signs Heads of Agreement with Wyloo and Hastings to Secure Yangibana Feedstock
October 29, 2025
Ucore Comments on G7 Focus to Secure Critical Mineral Supply Chains, October 30–31, 2025
