Aclara Resources (TSX: ARA) is looking to become a domestic producer of rare earths in the United States. The company this morning announced the decision to proceed with the construction of a heavy rare earths separation facility, which will represent the first such facility in the US.
The facility, which is to be located in Louisiana, is expected to process feed ore from two ionic clay deposits in Brazil and Chile. Those deposits are expected to be in operation by mid-2028, with final products expected to consist of high purity Dysprosium, Terbium, and other restricted heavy rare earths and light rare earths.
The facility is expected to be capable of supplying up to 75% of domestic US demand for DyTb used in electric vehicles by 2028, with annual production expected to amount to 200 tonnes per year of Dysprosium, alongside 30 tonnes of Terbium and 1,400 tonnes of NdPr, which is a combination of neodymium and praseodymium.
Scheduled for completion in 2027, Aclara is expected to spend US$277 million developing the facility at the Port of Vinton in Louisiana, which is net of US$46.4 million in tax incentives and grants that are to be provided by the State of Louisiana. With the site designated as a Louisiana Economic Development site, fast track construction is expected. A future metals and alloys plant is planned on the property as well to support the permanent magnet industry.
“Our Project is unique in the Western world: with direct access to our ionic clay deposits, this will be the only fully integrated heavy rare earth separation operation currently capable of producing material volumes of heavy rare earths at scale. We are moving at an accelerated pace to bring supply online as quickly as possible, and we are working to have our projects converge and enter production by mid-2028,” commented Roman Barua, CEO of Aclara Resources.
Aclara Resources last traded at $2.77 on the TSX.
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