Ucore and US DOD Agree on US$18.4M Initial Construction Funding for Rare Earth Processing

This isn't the kind of jobs we wanted Jeff to bring to the state.

TL;DR: Ucore Rare Metals Inc. Announcement
Ucore secured an $18.4M US DOD funding agreement to expand its RapidSX™ rare earth element (REE) separation technology, building on a $4M project. The funds will support:
Constructing a commercial-scale RapidSX™ machine in Alexandria, Louisiana.

Transferring technology from Ucore’s Canadian demo facility to the Louisiana Strategic Metals Complex (SMC).

Starting production in H2-2026, processing 2,000 tonnes/year of REEs like Pr, Nd, and Sm.
The project aims to bolster North American REE supply chain security, reducing reliance on China, with plans to scale up to 7,500 tonnes/year by 2027.

Groks info on environmental concerns:

Ucore’s $18.4M US DOD-funded RapidSX™ project in Louisiana aims to scale up rare earth element (REE) processing using advanced technology. Environmental concerns include:
Radioactive Waste: Processing may produce thorium/uranium-containing waste, risking soil/water contamination if not managed.

Chemical Pollution: Uses acids/solvents, with potential for spills or leaks, though RapidSX™ claims lower chemical use.

Water Use: High water demand could strain local resources or pollute if wastewater isn’t treated.

Energy Impact: Energy-intensive process may increase carbon footprint unless renewables are used.

Brownfield Risks: The site’s industrial history may involve pre-existing contamination needing remediation.

RapidSX™ offers benefits like a smaller footprint and faster processing, but without detailed waste management plans, risks remain. Strict oversight and sustainable practices are needed to minimize impacts.



Ucore Announces:

A US$18.4 million funding agreement with the US Department of Defense to launch its RapidSX™ Rare Earth Element Separation Technology toward full-scale operation, including:

Expansion of the current $4M US DOD demonstration project

Commercial-scale RapidSX™ production module construction and operations

System engineering technology transfer from Ucore's Canadian demonstration facility to its developing United States commercial facility

Full-scale construction and 'Early Production' in Louisiana in H2-2026


Halifax, Nova Scotia--(Newsfile Corp. - May 14, 2025) - Ucore Rare Metals Inc. (TSXV: UCU) (OTCQX: UURAF) ("Ucore" or the "Company") is pleased to announce that the Company has reached a firm fixed price agreement for a US$18.4 million increase to its current US$4M Other Transaction Agreement[i] ("OTA") with the US Army Contracting Command-Orlando. The purpose of the additional funding is to facilitate the construction of a production-ready commercial RapidSX™ machine and supporting infrastructure in Alexandria, Louisiana.

Specifically, this involves the pre-planned expansion of Ucore's existing Rare Earth Element ("REE") Separation Technology Capabilities Prototype Project, soon to conclude at the RapidSX™ Commercialization and Demonstration Facility ("CDF") in Kingston, Ontario. The additional Phase II scope of work will further scale up and commercialize Ucore's RapidSX™ technology for its developing Louisiana Strategic Metals Complex ("SMC") REE refinery in Alexandria, Louisiana. This will be achieved through the installation of a complete full-scale RapidSX™ separation machine capable of demonstrating commercial scale production of Pr, Nd, Sm, Gd, Tb and/or Dy – six of the seven REEs which are listed by the People's Republic of China's ("PRC") for export licensing restrictions.


The primary objectives of the Phase II project (the "Project") are:

Construct and demonstrate the full-scale RapidSX™ technology modules at the CDF.

Conduct a systems engineering approach to facilitate a knowledge transfer of the innovative RapidSX™ separation technology from the CDF to the SMC.

Install production separation capacity at the SMC capable of processing hundreds of tonnes of heavy and/or light total rare earth oxide ("TREO") processing utilizing the same RapidSX™ technology equipment platform.

It is anticipated that upon successful completion of the Project, Ucore will continue to construct RapidSX™ machines to complete its planned 2,000 tonne per annum TREO Phase 1 construction project. The concurrent construction and production efforts are enabled through the unique modular and adaptable attributes of the RapidSX™ technology platform coordinated with the smart acquisition and deployment of investment capital.

"Ucore's business model is founded on 1) collaboration with an array of like-minded upstream and downstream commercial and governmental partners and 2) the implementation of the next logical leap in commercial critical metals separation technology resulting from Western innovation," stated Pat Ryan, Ucore Chairman and CEO. "Ucore is very appreciative to the US DOD for the opportunity, and potential future opportunities, which have now resulted in this dedicated expansion Project to full scale processing production.

"This US DOD Louisiana SMC funding agreement is a critical step for Ucore's commercial advancements, but more importantly, for the progression of a Western rare earth supply chain, and North American critical metals security, which cannot exist without competitive critical metals processing on the world stage."

On May 10, 2025, Ucore executed a conditional advance agreement for pre-modification Project costs and will formally execute the OTA modification by June 10, 2025.

About Ucore Rare Metals Inc.
Ucore is focused on rare- and critical-metal resources, extraction, beneficiation, and separation technologies with the potential for production, growth, and scalability. Ucore's vision and plan is to become a leading advanced technology company, providing best-in-class metal separation products and services to the mining and mineral extraction industry.

Through strategic partnerships, this plan includes disrupting the People's Republic of China's control of the North American REE supply chain through the near-term development of a heavy and light rare-earth processing facility in the US State of Louisiana, subsequent SMCs in Canada and Alaska and the longer-term development of Ucore's 100% controlled Bokan-Dotson Ridge Rare Heavy REE Project on Prince of Wales Island in Southeast Alaska, USA.

LINK