Ucore to get up to $36M from Canadian gov't for project

Executive Summary

• Ucore Rare Metals Inc. has received conditional approval for up to $36.3 million in non-repayable government contributions from Natural Resources Canada (NRCan) and FedDev Ontario.
• The funding is designated for the "Pathway to Samarium and Gadolinium Security" project, which aims to scale up a first-of-its-kind commercial processing facility in Kingston, Ontario.
• The facility will utilize Ucore’s RapidSX separation technology to refine samarium and gadolinium, critical rare-earth elements vital for defense systems, medical imaging, and clean energy technologies, addressing supply chain vulnerabilities exacerbated by Chinese export controls.

Key Details

• Total Funding Amount: Up to $36.3 million CAD.
• Funding Sources:
  • Up to $26.3 million from Natural Resources Canada (NRCan) via the Global Partnerships Initiative (GPI).
  • Up to $10 million from FedDev Ontario.
• Project Scope: Demonstration and scale-up of a first-of-its-kind commercial processing facility in Kingston, Ontario.
• Target Materials: Samarium and Gadolinium oxides.
• Technology: Based on Ucore’s advanced RapidSX separation technology.
• Strategic Purpose:
  • To create the first dedicated samarium and gadolinium oxide production facility in North America.
  • To support the production of samarium cobalt (SmCo) magnets used in defense systems (radar, sonar, guidance), advanced medical imaging, and nuclear reactors.
  • To address critical gaps in North American defense and technology supply chains, specifically countering China’s export controls on these rare earths.
• Conditions: The funding is conditional upon meeting all program requirements, due diligence, and the successful negotiation and execution of a contribution agreement.
• Context: This follows an $18.4 million (U.S.) follow-on award from the U.S. Department of Defense in 2025, bringing total funding under the current OT agreement to $22.4 million (U.S.).

Notable Quotes

• Tim Hodgson, Minister of Energy and Natural Resources: "Canada is proud to support Ucore in advancing critical mineral development that aligns with our national priorities and international commitments... These minerals will power the clean energy transition, strengthen our defence and manufacturing capabilities, and position Canada as a trusted supplier to our allies."
• Pat Ryan, Chairman and CEO: "This contribution from NRCan is a powerful endorsement of our strategy to target specific and critical supply chain vulnerabilities with precision... This support accelerates our path to becoming the first North American producer of these critical materials."
• Dr. Ahmad Hussein, Director of Government Relations: "These contributions are the result of a shared vision between Ucore and the federal government for a secure and sovereign critical minerals ecosystem... It enables us to move forward with confidence, creating a strategic asset that will serve both national and economic security interests for decades to come."