Aclara completes metallurgical work for metals project

Executive Summary

• Aclara Resources Inc., through its 50/50 joint venture Aclara Metals SpA with CAP SA, has completed the technological development and metallurgical processes for its rare earth metals and alloys project, targeting supply to permanent magnet manufacturers.
• The project will be vertically integrated, receiving oxide feedstock from Aclara's heavy rare earth separation facility in Louisiana, with a prefeasibility study (PFS) targeted for completion by March 2026.
• A proprietary demonstration plant utilizing molten salt electrolysis technology is scheduled to begin operations in H2 2026, designed to produce 175 kg/day of >99.5% pure neodymium-praseodymium alloy to de-risk scale-up and inform the final feasibility study.

Key Details

• Joint Venture Structure: 50/50 partnership between Aclara Resources Inc. and CAP SA, operating as Aclara Metals SpA.
• Feedstock & Integration: Oxides will be supplied from Aclara's heavy rare earth separation facility in Louisiana, aligning with a vertical integration strategy covering mining, concentration, separation, and alloying.
• Prefeasibility Study (PFS): Targeted for completion by end of March 2026. Will include detailed production process design, modular development strategy, Class 4 capex/opex estimates per development stage, and economic analysis with scenario sensitivities.
• Feasibility Study (FS): Expected to be finalized by end of 2026, incorporating technical and operational inputs from the demonstration plant.
• Demonstration Plant Technology: Utilizes proprietary, in-house developed molten salt electrolysis technology. No established industrial standards exist outside of China for this specific metallurgical process, making the know-how a high-value asset.
• Demonstration Plant Capacity & Output: Designed to produce 175 kilograms per day of a neodymium-praseodymium (NdPr) alloy with >99.5% purity, representing a full-industrial-scale design equivalent to future commercial units.
• Demonstration Plant Timeline & Campaigns: Four campaigns lasting 5–20 days each, spanning a total of three months starting in H2 2026.
• Campaign Objectives: Demonstrate stable/continuous production meeting customer quality specifications, gain first-hand operational experience in a commercial setting, train operators, and generate operational data to build a digital process model for performance optimization.
• Future Alloy Development: Post-NdPr stage control, the company is evaluating a second demonstration stage to incorporate dysprosium oxide for a more sophisticated alloy.
• Additional Technology Pipeline: Conceptual technology developed for producing terbium metal via a vacuum reduction process (excluded from the initial demonstration phase).
• Construction Target: Company aims to have a project ready for construction by end of 2026, backed by proven technology and secured feed from the Louisiana separation plant and mines in Chile and Brazil.
• Key Equipment: Key equipment and consumables for the demonstration plant have already been defined and procured.

Notable Quotes

• Ramon Barua, CEO of Aclara: "For Aclara, this is a highly relevant step to continue delivering on the permanent magnets value chain strategy. The collaboration with CAP to advance the metals and alloys production segment is already showing strong signs of meaningful progress. Our goal is to have the mining, concentration, separation and alloying technologies under one roof, allowing us to be a cost-efficient, reliable and sustainable solution for the supply of heavy and light rare earth products. We expect to have a project ready for construction at the end of this year, supported by proven technology and with a secured feed from our Louisiana separation plant and our mines in Chile and Brazil."
• Nicolas Burr, CEO of CAP: "As shareholders of Aclara Resources and partners in the development of the metallization and alloys project, we highly value the technical progress achieved through this initiative. For us, it is important to contribute with our metallurgical expertise to the development of a rare earth value chain that is becoming increasingly strategic at the global level."