Ucore Rare Metals Inc. (TSX.V: UCU) (OTCQX: UURAF) has secured an $18.4 million phase 2 award from the U.S. Department of Defense to accelerate engineering, procurement, and site work for its Louisiana Strategic Metals Complex in Alexandria, Louisiana. This funding reinforces Ucore's leadership in domestic heavy rare earth element supply and represents a significant step toward reducing American dependence on foreign-controlled REE separation methods.
The phase 2 award expands upon an earlier $4 million phase 1 demonstration project that successfully proved Ucore's RapidSX™ column-based solvent extraction platform. This technology is central to the company's mission to break reliance on China-controlled legacy REE separation methods that currently dominate the global market. The additional funding supports detailed engineering, long-lead equipment procurement, and early-stage construction at the LA SMC facility.
Phase 2 funding is specifically intended to scale RapidSX™ to commercial readiness and position Ucore for mechanical completion of the facility in late 2026 with minimal equity dilution. The strategic importance of this development cannot be overstated, as rare earth elements are critical components in numerous advanced technologies including defense systems, renewable energy infrastructure, electric vehicles, and consumer electronics. For more information about the company's technology and projects, visit https://www.ucore.com.
The development of domestic REE processing capabilities addresses national security concerns and supply chain vulnerabilities that have become increasingly apparent in recent years. China currently controls approximately 80% of global rare earth element production and processing, creating significant geopolitical risks for Western nations. Ucore's progress represents a tangible step toward establishing North American independence in this critical sector.
This advancement in domestic rare earth processing technology has broader implications for multiple industries that rely on these materials. The successful commercialization of RapidSX™ could potentially lower costs, increase supply chain security, and create new economic opportunities in the advanced materials sector. Investors and industry observers can follow developments through the company's newsroom at https://ibn.fm/UURAF.
The timing of this development coincides with increased government and private sector focus on securing critical mineral supply chains. The DoD's substantial investment demonstrates the strategic importance placed on developing domestic capabilities in rare earth element processing and separation. This project represents a public-private partnership approach to addressing critical supply chain vulnerabilities that affect national security and economic competitiveness.
