Ucore Launches US Department of Defense Funded $18.4 Million Commercial Rare Earth Refining Project

Core Insights - Ucore Rare Metals Inc. has initiated a formal project kick-off meeting with the US Department of Defense regarding an USD$18.4 million Phase 2 Award aimed at constructing a commercial-scale RapidSX™ machine in Louisiana for heavy rare earth elements [1][2][3] Phase 1 and Phase 2 Awards - The Phase 2 Award supplements a previously announced USD$4 million Phase 1 Award, which demonstrated the efficacy of RapidSX™ in processing rare earths necessary for permanent magnets, including dysprosium [2][4] - The Phase 1 Award has resulted in successful separation of critical heavy rare earth elements, leading to a payment of USD$1.1 million, bringing total payments for Phase 1 to USD$3.35 million [5][7] Importance of Heavy Rare Earth Elements (HREEs) - HREEs are essential for US national security, playing a crucial role in advanced military technologies such as precision-guided missiles and F-35 jet engines, as well as in electric vehicles and renewable energy [3][9] - Ucore's partnership with the DOD aims to mitigate vulnerabilities in the supply chain, particularly as China restricts exports of these materials [3][9] Project Milestones and Deliverables - The project will focus on constructing a commercial-scale RapidSX™ machine, with milestones including commissioning and achieving early production readiness of rare earth products [4][5] - Detailed design and engineering work is ongoing at Ucore's facilities in Kingston, Ontario, and Alexandria, Louisiana [6] Strategic Initiatives and Future Plans - Ucore supports the DOD's initiatives to strengthen the domestic rare earth supply chain, including pricing floors and offtake commitments to enhance industry stability [9] - The company plans to disrupt China's control over the North American REE supply chain through the development of processing facilities in Louisiana and Alaska, as well as the Bokan-Dotson Ridge project in Alaska [11]