Ucore talks U.S. rare-earth project, DPAS status

Executive Summary

• Ucore Rare Metals provided a detailed progress update on its $22.4 million Phase II modification to the U.S. Army Contracting Command‑Orlando funding agreement for building a commercial RapidSX rare‑earth separation plant in Alexandria, Louisiana.
• The project has received Defense Priorities & Allocations System (DPAS) DO‑B8 rating, granting preferential treatment to related purchase orders under the Defense Production Act.
• Key engineering milestones have been reached: completion of initial fieldwork, >50 % progress on system‑engineering transition, and >75 % completion of long‑lead‑time material sourcing for a H2 2026 government demonstration.

Key Details

• Funding Agreement: $22.4 million U.S. modified funding agreement with the U.S. Army Contracting Command‑Orlando (Phase II modification dated July 9, 2025).
• DPAS Rating: DPAS DO‑B8 rating applied to purchase orders for the Louisiana SMC project, obligating suppliers to give these orders preferential treatment.
• Fieldwork Completed: Boundary surveys, Level II environmental site assessment, topographical and utility surveys, 3‑D building scan/Revit model, existing slab engineering analysis.
• Engineering Milestones:

• 50 % progress on system‑engineering transition from the Commercial Demonstration Facility (CDF) to the Louisiana SMC.

• Design engineering, material sourcing, and initial full‑scale RapidSX equipment confirmation testing underway.
• Feedstock Partnerships: In‑country due‑diligence meetings scheduled for August 2025 with prospective partners; definitive agreement discussions ongoing.
• Long‑Lead‑Time Materials (LLTM): >75 % of bill‑of‑materials and sourcing for primary and supporting LLTM equipment completed, targeting H2 2026 U.S. government demonstration of a single RapidSX machine.
• Project Objectives:
• Construct and demonstrate optimized full‑scale RapidSX modules at the CDF.
• Transfer technology to the Louisiana SMC using a systems‑engineering approach based on selected feedstocks.
• Install production capacity capable of processing hundreds of tonnes of heavy/light total rare‑earth oxide (TREO) per year.
• Future Capacity Plan: Upon successful Phase II completion, Ucore intends to install additional RapidSX machines to achieve a planned 2,000 tpa TREO Stage 1 construction and simultaneous production project.
• Investor Relations Engagement: Signed a prepaid cash agreement with ImpactDeck for $25,000 covering an initial six‑month term (Sept 15 2025 – Mar 15 2026) to enhance visibility and investor engagement.

Notable Quotes

“During the phase I government demonstration program, Ucore made significant strides in the validation and commercialization of its RapidSX separation technology platform,” said Mike Schrider, PE, Vice‑President & COO.
“The phase II full‑scale under‑way assembly and engineering transition work simply builds upon the approximately 5,500 hours of demonstration plant run time… allowing us to truly optimize the scaled‑up equipment.”