Ucore sees price of samarium, gadolinium rise

Executive Summary

• Ucore Rare Metals Inc. provided an operational and commercialization update on its pathway to produce samarium (Sm) and gadolinium (Gd) rare earth oxides, targeting allied defense, aerospace, and strategic industrial supply chains.
• The company is advancing dedicated production planning for Sm and Gd in parallel with its scale-up toward the Louisiana strategic metal complex, aiming to address urgent shortages and Western-aligned supply chain security.
• The update highlights the strategic urgency driven by U.S. Department of Defense actions, including a March 1, 2026, request for proposals to increase domestic production of critical minerals and tightening procurement restrictions effective January 1, 2027.

Key Details

• Strategic Context: Samarium and gadolinium have seen significant price hikes and are subject to export licensing constraints. Samarium is critical for high-performance samarium-cobalt permanent magnets used in guidance, radar, and sonar systems.
• Regulatory Timeline:
  • March 1, 2026: U.S. Department of Defense requested proposals to increase domestic production of critical minerals, including Sm and Gd.
  • January 1, 2027: U.S. defense procurement restrictions expand to the full upstream supply chain for samarium-cobalt magnets, creating a "compliance cliff" for contractors to qualify secure, Western-aligned sources.
• Operational Progress (Kingston CDF):
  • Process flow sheets are being refined for dedicated Sm and Gd production.
  • Contractor factory acceptance testing is underway for the RapidSX computerized, column-based separation platform.
  • Multiple feedstocks, including ionic clays, have been processed to evaluate separation behavior and chemical splits between Sm and Gd.
• Technology & Supply Chain: RapidSX is designed to operate without reliance on Chinese-sourced equipment or technology transfer, supporting Western qualification requirements and rebuilding North American mid-stream capacity.
• Commercial Interest: Since the project's public award at the G7 Economic Summit in October 2025, Ucore has received rising inbound interest from defense and aerospace participants seeking qualification data, production timelines, and commercial structures.

Notable Quotes

• "Defence programs do not fail at the front end. They fail at the choke points," said Pat Ryan, chairman and chief executive officer of Ucore. "Samarium and gadolinium are exactly that kind of choke point. Contractors are being pushed to qualify non-covered-nation supply chains ahead of the 2027 compliance cliff, while Chinese export licensing remains a structural constraint. Ucore is advancing a dedicated Sm and Gd refining pathway to support allied readiness timelines."