Aclara Secures Tax Exemption Approval of Over US$20 Million For Its U.S. Heavy Rare Earth Separation Facility in Louisiana

Aclara Resources Inc. has secured final approval from the State of Louisiana for an 80% ad valorem property tax exemption on its planned heavy rare earth separation facility at the Port of Vinton. The tax incentive is projected to generate approximately US$4.2 million in annual savings, totaling US$20.8 million over the initial five-year term, with an option to renew for an additional five years.

The facility will process mixed rare earth carbonates from Chile and Brazil into high-purity separated heavy rare earth oxides. Groundbreak is targeted for the fourth quarter of 2026, with ongoing technology validation currently underway at a Virginia Tech pilot plant. The project targets heavy rare earths including dysprosium, terbium, yttrium, gadolinium, and samarium, which are essential for permanent magnets in electric vehicles, robotics, and wind turbines.

The tax incentive structure provides an 80% exemption from ad valorem property taxes under Louisiana's Industrial Tax Exemption Program (ITEP) for an initial five-year period, with a renewal option for five additional years. This financial impact is expected to result in annual property tax savings of approximately US$4.2 million, amounting to approximately US$20.8 million over the initial five-year term.

A proprietary solvent extraction pilot plant at Virginia Tech is currently operational and is expected to provide approximately two years of operational data to reduce scale-up risk prior to commercial production. Post-validation, Aclara plans to apply its separation technology in Brazil and other operating countries. The project supports a vertically integrated mine-to-alloys strategy combining South American mining with North American downstream processing.

Approval was executed by Governor Jeff Landry, with ongoing partnership support from Louisiana Economic Development and local stakeholders.

"The final approval of the ITEP incentive marks another important milestone for Project Dynamo and reflects the outstanding partnership we have built with the State of Louisiana," said Ramón Barúa, Chief Executive Officer. "We are grateful for the strong support from Governor Jeff Landry, Louisiana Economic Development and our local partners, who share our vision of establishing Louisiana as a strategic hub for rare earth processing and strengthening resilient critical mineral supply chains for the United States."