Ucore Rare Metals (TSXV: UCU; WKN A2QJQ4; OTCQX: UURAF) is moving to the center of value creation for rare earths with a clear goal: the construction of North American midstream capacities for the separation and refining of rare earth concentrates. In doing so, the company is addressing the bottleneck between mining and magnet manufacturing – a section that has so far been largely absent in Western supply chains and continues to cement dependence on China.
The plan is to gradually ramp up a Strategic Metals Complex (SMC) in Alexandria, Louisiana, based on the company’s proprietary RapidSX™ platform. Implementation is supported by funding from the U.S. Department of Defense, Canadian funds, and incentives from the State of Louisiana.
Rare Earths: Geopolitical Context and Market Dynamics
The market for rare earths (REE) is considered a critical infrastructure for modern technologies – from electromobility and wind power to semiconductors and defense. According to industry data, China controls approximately 65% of global REE resources and approximately 67% of active mining. The dominance is particularly pronounced in refining: Estimates suggest that up to 88% of oxide production and up to 95% of refining/separation are attributable to Chinese suppliers. In downstream areas such as metals, alloys and NdFeB permanent magnets, the shares are over 90%. Export controls for heavy elements such as terbium and dysprosium, as well as for process know-how, illustrate the risk of a “single point of failure” for Western industries.
At the same time, demand is increasing. Analyses by Adamas Intelligence expect a fivefold increase in global consumption of rare earth oxides for magnet applications by 2040; the market value could rise from USD 7.8 billion (2024) to around USD 44.1 billion. In addition to electromobility and renewable energies, robotics is also mentioned as a future driver. Against this background, Ucore Rare Metals is positioning its activities as a building block for a resilient North American supply chain.
Ucore Rare Metals Focuses on Midstream – Strategy and Business Model
Instead of developing new mines, Ucore Rare Metals is concentrating on the midstream step: the complex separation of mixed REE concentrates into high-purity individual oxides. The company is pursuing four pillars: first, feedstock diversification from multiple “US-friendly” sources to reduce dependencies; second, the construction of multiple regional Strategic Metals Complexes (SMCs) as processing centers; third, partnerships with downstream processors in the USA and allied states for further processing into metals, alloys and magnets; and fourth, the licensing of RapidSX™ technology via joint ventures and contracts to accelerate the dissemination of the technology platform.
A historical analogy serves as a reference: Just as in the oil age, control of the refineries determined the flow of the industry, Ucore Rare Metals is targeting the controlling bottleneck of REE separation.
RapidSX™: Demonstrated Separation Technology for REE Oxides
The RapidSX™ platform uses the proven chemistry of solvent extraction (SX), but changes the physical process control by means of patented, computer-aided columns. According to the company, the system enables a 3 to 7 times higher throughput, requires up to 70% less space and is feedstock agnostic, i.e. suitable for light (LREE) and heavy (HREE) elements. Modularity and “start-stop” capability are intended to simplify operation and scaling.
According to the company, the technology has been tested in the Commercial Demonstration Facility (CDF) in Kingston, Ontario, for more than 6,000 operating hours; more than 4 tons of various mixed REE concentrates were processed. With the CDF experience in mind, Ucore Rare Metals is planning the transition to commercial scale. This step is relevant for the industry because it could shift the separation, which has so far been concentrated in Asia, at least partially to North America.
SMC Louisiana: Timeline, Capacities and Government Support
The core of the commercialization path is the SMC Louisiana in Alexandria – a brownfield site in a free trade zone, which facilitates imports and exports. The ramp-up is to take place in stages: Q4/2025 is the planned commissioning of the first stage with an initial 2,000 tpa REO; a scaling to > 5,000 tpa is planned for 2026; in 2027, the capacity could reach up to 7,500 tpa. This is to be achieved via RapidSX™ “trains” – units of five machines each with 2,400–3,000 tpa processing capacity per train. CEO Pat Ryan puts the top-line potential of a 5,000 tpa stage at around USD 500 million at current prices! (However, this does not constitute a forecast for earnings development.)
A key element of the implementation is public support. According to Ucore, this includes commitments from the U.S. Department of Defense (DoD) of USD 22.4 million for the first commercial RapidSX™ machine in the SMC Louisiana, as well as an additional USD 4 million for the processing of HREE feedstock in the CDF in Kingston. From the Canadian side, CAD 4.3 million was provided for the demonstration and commercialization of the technology. The State of Louisiana has announced a LOI of USD 15 million and further incentives – including tax breaks, wage subsidies and infrastructure measures.
Conclusion: With RapidSX™ and the SMC Louisiana, Ucore Rare Metals is addressing a central gap in the Western REE supply chain. If the planned commissioning is successful, initial North American capacities for REE oxides could be created, which will feed downstream steps as far as NdFeB magnets in allied states. The relevance arises from the combination of increasing demand for magnetic materials, the strong concentration of refining in China and the security policy interests of the USA and Canada. How quickly the capacities will actually become available depends on approvals, plant construction, feedstock availability and industrial integration along the rare earth value chain.
