Groundbreaking Ceremony for Construction of First Rare Earth Production Facility in the U.S.

Ucore Rare Metals (TSXV: UCU, OTCQX: UURAF, WKN: A2QJQ4) has now received the follow-up order from the US Department of Defense, which was announced in May. It has a volume of 18.4 million US dollars and supports the company in building its Strategic Metals Complex in Alexandria, which recently began with the groundbreaking ceremony.

Rare earths are not only needed for wind turbines and electric motors. They have also become indispensable components in today’s space research and defense technology. However, over 90% of rare earths still come from the People’s Republic of China. It is understandable that the extreme dependence of the West on the Middle Kingdom is a thorn in the side of the US Department of Defense. It is therefore absolutely comprehensible that the Pentagon is vigorously promoting the development of domestic sources for rare earth production.

Ucore Rare Metals is now benefiting from this support, and not just a little, because the contract now concluded with the US Department of Defense, with a volume of 18.4 million US dollars, is the largest financing agreement the company has ever concluded. This follow-up order from the Pentagon, which concerns the first production phase, was already announced on May 14, 2025. It increased the financial support from the U.S. Army Contracting Command in Orlando to a total of 22.4 million US dollars.

The US Military Wants to End Chinese Dominance in Rare Earths

The funds that Ucore Rare Metals receives from the US Army are classified as grants and are therefore non-repayable. The newly approved 18.4 million US dollars are intended to enable the construction of the first commercial RapidSX™ facility and associated infrastructure at Ucore’s Strategic Metals Complex in Alexandria, Louisiana.

The construction and confirmation tests of the RapidSX™ columns in the company’s commercialization and demonstration facility in Kingston, Ontario, Canada, are also being funded. The latter is intended to test the processing of rare earths to be mined on a commercial scale.

The Focus is on Ucore’s Strategic Metals Complex in Alexandria

Just a few days ago, on May 29, 2025, a small ceremony with local representatives marked the groundbreaking for the construction of the Strategic Metals Complex in Alexandria. This is to be followed as quickly as possible by the completion of detailed construction and development plans and the submission of all remaining applications for the necessary permits.

The focus is initially on the construction of the required RapidSX™ infrastructure. Initially, the installation of three RapidSX™ machines is planned in the Strategic Metals Complex. Space for the installation of additional machines is still available afterwards, as the facility was planned with an area of 7,506 m² from the outset, making future expansions easily possible.

Important Tests Coming Up

An important intermediate step in testing will be the construction of a RapidSX™ machine on a commercial scale. It is not only intended to provide important insights for the commissioning of these systems but also to subsequently demonstrate that the developed machines themselves are ready for production and that the rare earth products manufactured by them represent marketable products. Current plans envisage that the first rare earth products manufactured by Ucore will leave the Strategic Metals Complex in Alexandria in the second half of 2026.

The volume of possible funding has not yet been exhausted. Ucore is particularly waiting for further funding opportunities that could arise from the executive order of April 15. This includes a Section 232 investigation led by the Department of Commerce to identify critical mineral bottlenecks and projects to restore domestic production capacities.

Ucore Looks Optimistically to the Future and Tackles the Next Steps

Pat Ryan, the Chairman and CEO of Ucore, is very grateful for the ongoing support the company has been receiving for months from various US agencies, especially the Department of Defense. He sees Ucore on a good path to begin commercial production of separated and marketable rare earth oxides in the USA next year. The coming weeks and months thus promise to be very labor-intensive, but also very exciting.

Freeing America and the entire Western world from China’s dominance in rare earths is more of a marathon than a short 100-meter sprint. Accomplishing this requires long-term endurance and many small but important successes that are passed as milestones on the way to the goal. Ucore Rare Metals has this endurance, and the company is now doing everything it can to reach the next significant milestone with the completion of the Strategic Metals Complex in Alexandria next year.