Aclara Selected by the U.S. Department of Energy for Federal Funding to Advance AI-Driven Heavy Rare Earth Processing
Aclara received a Department of Energy grant to advance AI-driven processing technology for its rare earth element separation hub in Louisiana.
Aclara Technologies Inc., a U.S. subsidiary of Aclara Resources Inc. (ARA), has been selected by the U.S. Department of Energy (DOE) under the Genesis Mission initiative to receive federal funding. The project, titled "AI-Enabled Process Optimization for Multi-Feed Rare Earth Separation," focuses on developing an AI-assisted digital twin for complex rare earth solvent extraction circuits.
Collaborators on the project include Argonne National Laboratory, which will handle advanced process simulation, and Virginia Tech, which will manage pilot plant operations and data generation. Expected outcomes include improved process stability, higher recovery and product purity, reduced operator intervention, and accelerated scale-up of domestic separation technologies. Successful completion of Phase I opens the pathway to Phase II for additional federal funding. The initiative directly supports Aclara's vertically integrated mine-to-magnet strategy and reinforces U.S. critical minerals supply chain resilience.
Aclara Resources Inc. (ARA) announced a development that serves as a direct follow-up to its January 2026 Cooperative Research and Development Agreement (CRADA) with Argonne National Laboratory and the March 2026 inauguration of the Virginia Tech pilot plant. The company describes the announcement as an expected, incremental validation step rather than a sudden paradigm shift.
The Department of Energy funding aims to de-risk the upcoming $277 million Louisiana separation facility, known as Project Dynamo, by providing non-dilutive capital and third-party technical validation. This move aligns with the previously disclosed strategy of leveraging government support and academic partnerships to advance the U.S. downstream platform.
The news does not alter the company's capital expenditure requirements, construction timelines, or production guidance. Market reaction is likely to be muted, as the technology validation was already priced in following the pilot plant launch and prior government partnerships.
Aclara Resources Inc. is developing a vertically integrated, Western-hemisphere supply chain for heavy rare earth elements, including dysprosium, terbium, and neodymium-praseodymium. The company’s flagship assets include the Carina Project in Brazil, which features ionic clay deposits and a NI 43-101 feasibility study showing an after-tax NPV of $1.7 billion and an IRR of 26.9%, with production targeted for the second half of 2028.
In Chile, the Penco Module is being developed in partnership with Grupo CAP, utilizing Circular Mineral Harvesting technology. The project has received environmental approval, and a feasibility study is targeted for the fourth quarter of 2026. In the United States, Project Dynamo in Louisiana will serve as the first dedicated heavy rare earth separation facility, involving a $277 million investment supported by $46.4 million in state incentives, with completion targeted for the first quarter of 2028. Additionally, a 50/50 joint venture with CAP S.A. in Louisiana will produce permanent magnet alloys using proprietary molten salt electrolysis, with a demonstration plant targeted for the second half of 2026.
The company employs patented Circular Mineral Harvesting technology, which achieves zero tailings and over 93% water recirculation, combined with advanced solvent extraction and AI-driven process optimization.