Ucore Rare Metals Inc. (TSXV: UCU, OTCQX: UURAF), a company specializing in rare earth element (REE) separation technologies, has announced the approval of a $1.8 million payment from the US Department of Defense (DoD). This payment is part of modifications to an existing Other Transaction Agreement (OT Agreement) and brings the total funding received under this agreement to $2.3 million.
The funding supports Ucore’s ongoing work at its RapidSX™ Commercial Demonstration Facility (CDF) in Kingston, Ontario. The facility is focused on demonstrating the commercial viability of the company’s proprietary RapidSX™ separation technology, which aims to process both heavy and light rare earth elements into marketable products. This technology is positioned to play a key role in establishing a sustainable North American supply chain for rare earth materials.
Under the terms of the $4 million OT Agreement, Ucore has made substantial progress in rare earth element processing by achieving over 2,600 hours of operation at its demonstration plant, which successfully simulated commercial processing conditions for mixed rare earth elements. The company has also completed thousands of hours of conventional solvent extraction (SX) pilot operations, enabling comprehensive comparative analysis of processing techniques. These significant milestones are strategically positioned to support the development of a Western supply chain for rare earth processing, with the explicit goal of reducing the United States’ historical dependence on Chinese rare earth imports.
Notably, these accomplishments directly align with the broader strategic objectives outlined in the 2024 National Defense Authorization Act (NDAA), which mandates a ban on importing rare earth products from China for use in the US defense industry, effective January 1, 2027, thereby positioning Ucore as a critical domestic solution to meet emerging national security and technological infrastructure needs.
The global focus on securing rare earth supply chains has intensified as countries seek to reduce dependence on China, which dominates the market. Rare earth elements are critical for various technologies, including military equipment, renewable energy systems, and advanced electronics. The NDAA highlights this urgency by promoting domestic production capabilities.
Pat Ryan, Chairman and CEO of Ucore, emphasized the importance of this initiative: “The need for a domestic rare earth supply chain has never been higher. We are grateful for the DoD’s support and look forward to continuing our work to ensure a secure and sustainable supply of these critical materials.”
Ucore plans to continue executing its DoD-funded heavy REE project through mid-2025. Following this phase, the company will transition to its light REE demonstration project, supported by C$4.28 million in funding from the Government of Canada. Additionally, Ucore is advancing plans to establish a commercial-scale rare earth processing facility in Louisiana as part of its broader strategy to disrupt China’s dominance in this sector.
Ucore Rare Metals Inc. focuses on developing technologies for extracting and separating critical metals, particularly rare earth elements. The company aims to establish strategic processing facilities across North America while advancing its Bokan-Dotson Ridge project in Alaska. Through innovation and partnerships, Ucore is positioned to play a pivotal role in reshaping global rare earth supply chains.
