Aclara to build U.S. heavy rare-earths facility

Executive Summary

• Aclara Resources Inc. announced the decision to construct the first heavy rare-earths (HREE) separation facility in the United States, located in Louisiana.
• The project aims to secure sustainable feed from two ionic clay deposits in Brazil (Carina) and Chile (Penco), with production expected to begin by mid-2028.
• The initiative is part of Aclara's "mine-to-magnet" strategy, involving a $277-million investment and supported by approximately $46.4-million in Louisiana state tax incentives and grants.

Key Details

• Facility Location & Investment: The separation facility will be built on an 82-acre LED-certified site at the Port of Vinton, Louisiana. Aclara will invest approximately $277-million (U.S.) for development.
• Production Timeline: The facility is scheduled for completion in 2027, contingent on funding and offtake agreements. Secured sustainable feed from Brazil and Chile is expected by mid-2028.
• Production Capacity: Upon full production, the facility is anticipated to produce:
  • 200 tonnes per year (tpy) of Dysprosium (Dy)
  • 30 tpy of Terbium (Tb)
  • 1,400 tpy of Neodymium-Praseodymium (NdPr)
  • This represents approximately 14% of China's official DyTb production.
• Market Impact: Aclara anticipates supplying more than 75% of U.S. requirements for DyTb for electric vehicles by 2028.
• Feed Sources: The facility will integrate with Aclara’s ionic clay deposits in Brazil (Carina project) and Chile (Penco module).
  • The Carina prefeasibility study (PFS) is scheduled for publication in early November 2025.
  • The feasibility study (FS) for Carina is expected in Q2 2026.
  • Significant progress has been made at the Goiania pilot plant in Brazil to enhance the purity of mixed rare-earth carbonate.
• Technology & Partnerships:
  • Virginia Tech: Aclara is collaborating with Virginia Tech to validate its proprietary separation process via a pilot plant, expected to be fully operational by Q1 2026. This will provide ~1.5 years of feed-specific operational data before Louisiana production starts.
  • Hatch Ltd.: Retained to develop engineering for the Louisiana project and the Carina project to ensure coordination and cost-efficiencies.
  • VAC (VacuumSchmelze): Aclara has a strategic alliance with VAC, which is building a permanent magnet production facility in Sumter, South Carolina.
  • CAP Joint Venture: Aclara is advancing alloy-making capabilities through a joint venture with CAP to convert refined oxides into alloys for permanent magnets.
• Louisiana Incentives: The State of Louisiana is providing an estimated $46.4-million (U.S.) in support, including:
  • Industrial Tax Exemption Program (ITEP): 80% ad valorem tax exemption for 5 years (renewable). Estimated value: $29.3-million.
  • High-Impact Jobs Program (HIP): Cash grants of 18-22% of wages for new jobs. Estimated value: $11.6-million.
  • Performance-based Infrastructure Grant: Reimbursement for utility/road improvements. Estimated value: $3.0-million.
  • LED FastStart: Employment recruitment and training services. Estimated value: $2.5-million.
• Additional Plans: Aclara plans an additional investment to construct a metals and alloys plant on the Louisiana property to support the high-performance permanent magnet industry.

Notable Quotes

• Ramon Barua, CEO: "We are pleased to announce that we have secured a premium site in Louisiana for our U.S. heavy rare-earth separation facility... 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."
• Hugh Broadhurst, COO: "This facility will become a cornerstone of critical minerals reindustrialization in the Western Hemisphere... The incentive package offered by the State of Louisiana underscores the state's commitment to attracting high-technology and sustainable manufacturing investments."
• Governor Jeff Landry: "By choosing Louisiana for its first U.S. facility, Aclara is recognizing what we already know, our state is leading the next generation of energy and technology innovation."