Ucore Rare Metals Inc. (TSX.V: UCU) (OTCQX: UURAF) has been awarded an $18.4 million phase 2 award by the U.S. Department of Defense to accelerate the engineering, procurement, and site work for its Louisiana Strategic Metals Complex (LA SMC). This award underscores the company's pivotal role in establishing a domestic supply chain for heavy rare earth elements (HREEs), crucial for defense and high-tech industries.
The funding builds on the success of phase 1, where Ucore demonstrated the effectiveness of its RapidSX(TM) technology in separating terbium and dysprosium, two HREEs essential for permanent magnets and defense applications. The phase 1 project received over $3.35 million in payments, validating the technology's potential (https://ibn.fm/RxJ1W).
RapidSX offers a groundbreaking alternative to traditional solvent extraction methods, dominated by Chinese refiners. It promises faster separation times and a smaller physical footprint, enhancing cost-effectiveness and scalability. The DoD's phase 2 award signifies strong government support for RapidSX as a viable pathway to HREE independence (https://ibn.fm/OTvbq).
This development is critical for sectors reliant on HREEs, including defense, electric vehicles, and clean energy, signaling the emergence of a reliable North American supply chain. Ucore's approach minimizes shareholder dilution by leveraging contract funding, ensuring a disciplined financial strategy and reducing capital risk.
Ucore aims to complete the LA SMC by the second half of 2026, initiating production of salable rare earth elements. This progress not only fortifies the U.S. rare earth supply chain but also presents a unique investment opportunity at the intersection of technology, national security, and infrastructure development.
