Ucore Secures $18.4M DoD Contract to Develop Rare Earth Separation Facility in Louisiana

Ucore Rare Metals has secured an $18.4 million contract from the U.S. Department of Defense to build a commercial-scale rare earth separation system in Alexandria, Louisiana. The project represents a significant step toward establishing a domestic supply chain for critical minerals and reducing dependence on foreign sources.

The facility, located in a Foreign Trade Zone, will feature the company's proprietary RapidSX™ technology capable of processing individual rare earth oxides. Construction is planned to begin in the second half of 2026, with a groundbreaking ceremony already held on May 29 attended by local, state, and federal leaders.

This investment brings Ucore's total non-repayable funding under its existing agreement to $22.4 million. The project is particularly notable for its potential to challenge the current market dominance of China in rare earth mineral processing, a critical consideration for U.S. national security and technological innovation.

The strategic metals complex will support engineering, permitting, and infrastructure development for separating rare earth elements. By establishing this facility, Ucore aims to create a scalable, domestic solution for processing these increasingly vital technological materials.

The project highlights the growing national priority of securing independent supply chains for critical minerals, which are essential for advanced technologies including defense, renewable energy, and electronics manufacturing.