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

Ucore Rare Metals has finalized a significant $18.4 million contract with the U.S. Department of Defense to develop its first commercial-scale RapidSX™ rare earth separation system in Alexandria, Louisiana. This award brings the company's total non-repayable funding under its existing agreement to $22.4 million, representing a substantial investment in domestic rare earth processing capabilities. The project aims to construct a rare earth oxide processing facility capable of achieving operational readiness by the second half of 2026, marking a critical timeline for establishing domestic supply chain independence.

The strategic importance of this development was underscored by a recent groundbreaking ceremony attended by local, state, and federal leaders who emphasized the national security implications of reducing international dependencies in critical mineral supply chains. The facility's location within a Foreign Trade Zone provides significant logistical and tax advantages that could potentially reduce operational costs and enhance competitive positioning against international competitors. This positioning is particularly important given the current market dominance of the People's Republic of China in rare earth element production and processing, making this project a strategic response to global supply chain vulnerabilities.

Ucore's broader strategic approach involves 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 processing network. This investment signals growing national interest in developing domestic capabilities for extracting and processing rare earth elements, which are crucial components for advanced technologies across multiple sectors including defense systems, electronics manufacturing, and renewable energy applications.

By investing in innovative separation technologies like RapidSX™, Ucore is positioning itself as a potential key player in the critical minerals ecosystem at a time when supply chain security has become a national priority. The development of domestic rare earth processing capacity addresses vulnerabilities in the global supply chain that have been highlighted by recent geopolitical tensions and trade disruptions. The Louisiana facility represents not just a commercial venture but a strategic national asset that could help ensure the United States maintains access to materials essential for both economic competitiveness and national security requirements across multiple technology sectors.