Ucore Rare Metals Inc., a leading innovator in the field of critical mineral processing, has secured a major funding boost from the U.S. Department of Defense (DoD), with an $18.4 million investment committed toward the construction of a rare earth element (REE) processing facility in Alexandria, Louisiana. This strategic investment brings the total funding from the DoD to $22.4 million, following an earlier $4 million award made in 2023.
The funding forms part of the U.S. government’s broader strategy to establish a reliable domestic supply chain for critical minerals—materials considered essential to national security, advanced manufacturing, renewable energy, and the defense sector. In particular, the rare earth elements to be processed at Ucore’s facility are crucial for the production of electric vehicle motors, wind turbine generators, missile guidance systems, jet engines, and advanced communications infrastructure.
The Louisiana-based project, known as the Strategic Metals Complex (SMC), will leverage Ucore’s proprietary RapidSX™ technology, a disruptive advancement in rare earth separation. Unlike traditional solvent extraction methods that are energy-intensive and environmentally taxing, RapidSX™ offers a cleaner, more efficient approach to separating rare earth elements with commercial scalability. This breakthrough has drawn considerable attention, positioning Ucore as a potential game-changer in a space historically dominated by China.
According to Ucore’s CEO Pat Ryan, the funding is more than just financial backing—it is a “vote of confidence” in the company’s mission to anchor North America’s rare earth independence. “We are proud to partner with the U.S. government in accelerating the development of a secure and sustainable supply chain for these critical materials,” said Ryan. “This funding allows us to fast-track construction and begin early-stage production, ensuring we are on target to meet urgent national needs.”
Construction at the Louisiana SMC site is expected to begin in earnest by the second half of 2026. Initial production capacity is targeted at 2,000 tonnes per annum of Total Rare Earth Oxides (TREO), with expansion plans that could scale capacity to 5,000 and eventually 7,500 tonnes annually. These milestones would represent a significant portion of the current global demand, allowing the U.S. to reduce its overwhelming reliance on imports from foreign-controlled suppliers.
The facility will focus on processing six of the most strategic rare earth elements: praseodymium, neodymium, samarium, gadolinium, terbium, and dysprosium. These elements are often referred to as the “magnet materials,” as they are essential for the manufacture of high-performance permanent magnets used in electric motors and military-grade systems.
The U.S. Department of Defense has been increasingly active in supporting the domestic rare earth sector under the Defense Production Act and related supply chain resilience initiatives. The funding for Ucore aligns with these national directives, as policymakers seek to shield the nation from geopolitical disruptions, market volatility, and over-reliance on single-source foreign suppliers.
Beyond national security, Ucore’s Louisiana SMC project is expected to generate significant local economic benefits. The facility will create high-skilled jobs, attract investment into the Alexandria region, and serve as a nucleus for future mineral processing and advanced manufacturing operations across the U.S. Gulf Coast.
As global demand for rare earth elements continues to surge driven by the clean energy transition, electric mobility, and technological defense modernization—the U.S. is racing to secure its place in the supply chain. With this latest round of funding, Ucore is not only building a plant it is building a bridge to a more secure, independent, and resilient future for American industry.
