Ucore Rare Metals Inc. (TSXV: UCU; OTCQX: UURAF) is moving forward with a significant step in North America’s rare earth element (REE) industry. The company is set to break ground on its first commercial rare earth refining facility, the Louisiana Strategic Metals Complex (SMC), at England Airpark in Alexandria, Louisiana. This development marks a key milestone in establishing a secure, domestic supply chain for critical rare earth materials essential to electric vehicles, wind turbines, and national defense technologies.
The Louisiana SMC will occupy an 80,800-square-foot brownfield site under a long-term lease with the England Authority, which manages England Airpark, a repurposed former U.S. Air Force base now serving as a regional economic hub. The facility is designed to process mixed rare earth chemical concentrates sourced globally, producing high-purity rare earth oxides such as neodymium, praseodymium, dysprosium, and terbium.
These elements are crucial for manufacturing permanent magnets used in clean energy and defense applications. The SMC will be the first commercial deployment of Ucore’s RapidSX™ technology, a patent-pending solvent extraction process that aims to improve the speed, efficiency, and environmental footprint of rare earth separation.
Ucore’s progress is supported by a broad coalition of partners across local, state, and federal levels. The U.S. Department of Defense (DoD) recently extended a US$18.4 million grant to Ucore under the Industrial Base Analysis and Sustainment (IBAS) Program. This funding will help initiate construction and procurement of equipment for the Louisiana facility, underscoring the federal government’s commitment to securing a domestic supply of critical minerals vital to national security.
The England Authority has played a pivotal role by providing a site within a federally designated Foreign Trade Zone (FTZ). This status offers Ucore potential duty deferrals or reductions on imported feedstock materials, enhancing the competitiveness of the facility on a global scale. The location also benefits from existing infrastructure and expedited permitting processes, facilitating a smoother path to operational readiness.
The State of Louisiana, together with local partners, has put together an incentive package valued at over $15 million to support Ucore’s project. This package includes up to $8.2 million in ad-valorem tax savings over 10 years through the Industrial Tax Exemption Program (ITEP), a $900,000 infrastructure grant for facility upgrades, and $360,000 in lease cost offsets over 24 months. Additional support features payroll rebates, workforce training via LED FastStart™, and expedited state permitting. These incentives demonstrate Louisiana’s strategic commitment to becoming a key hub in North America’s rare earth supply chain and attracting advanced manufacturing investments.
Ucore’s broader strategy extends beyond Louisiana. The company plans to deploy additional Strategic Metals Complexes in Canada and Alaska, alongside developing its 100%-owned Bokan-Dotson Ridge Rare Heavy REE Project in Southeast Alaska. This multi-pronged approach aims to reduce North America’s reliance on foreign sources, particularly China, which currently dominates the rare earth market.
Pat Ryan, Ucore’s Chairman and CEO, emphasized the importance of this project not just for the company but for national interests: “Breaking ground on the SMC is a pivotal moment, for Ucore and for North American critical mineral processing. We are fortunate to have strong partners at all levels of government and look forward to advancing a secure, domestic rare earth supply chain.”
The rare earth market is critical to the future of clean energy and defense technologies, with demand expected to grow significantly over the next decade. Ucore’s Louisiana facility represents an important step in addressing supply chain vulnerabilities by establishing domestic processing capabilities.
Investors and industry watchers will be closely monitoring Ucore as the company transitions from development to production. The successful operation of the Louisiana SMC could position Ucore as a key player in the North American rare earth ecosystem.
