Ucore Rare Metals Expands US Defense Funding to $27 Million
Ucore Rare Metals has secured an additional $6.4 million from the US Department of War to expand its rare earth separation program in Louisiana, bringing total government support to $27 million.
Ucore Rare Metals (TSX-V:UCU) has secured an additional US$4.6 million, equivalent to C$6.4 million, from the US Department of War to expand its rare earth elements separation program in Louisiana. This new funding is an add-on to a previous agreement signed in May 2025, which committed US$18.4 million to advance the company’s RapidSX separation technology toward full-scale commercial operation. The total investment now stands at US$27 million under the existing Other Transaction Agreement.
The funds will support the scale-up and commercialization of technology at the developing Louisiana Strategic Metals Complex in Alexandria. Ucore plans to install a full-scale separation machine capable of demonstrating commercial production of six rare earths currently subject to Chinese export restrictions: praseodymium, neodymium, samarium, gadolinium, terbium, and dysprosium. The company aims to achieve early production at the facility within the current year.
Program scope includes critical defense minerals
The US Department of War has modified the existing agreement to include samarium and gadolinium, both identified as priorities for strengthening domestic critical mineral supply chains. Samarium is essential for samarium-cobalt magnets used in high-temperature defense and aerospace applications, while gadolinium serves in specialized coatings, electronics, and nuclear reactor neutron absorption. These elements were flagged in the US Geological Survey’s 2025 assessment as facing the highest supply chain risks following recent Chinese export controls.
In February 2026, the Defense Industrial Base Consortium issued a request for projects addressing production gaps across 13 critical minerals, specifically seeking separation and processing capabilities for samarium and gadolinium. Ucore’s expansion directly addresses this national need by securing a domestic supply source for materials that US defense and industrial sectors depend on, reducing reliance on foreign export-restricted supplies.
Recent milestones support commercialization timeline
The additional government support follows several key commercialization advances during the summer. In June, Ucore shipped neodymium-praseodymium oxide qualification samples to major magnet manufacturers, followed by the production of 99.9% pure dysprosium oxide in July, which has also been shipped for customer qualification. In August, the company completed its RapidSX contactor scale-up program after more than 400 optimization tests and closed a public offering raising approximately C$69.5 million.
These milestones, detailed in materials from GN auto stocks and rare earths sectors, support the development of commercial relationships across Ucore’s broader product portfolio. CEO Pat Ryan stated that the company has optimized commercial equipment configurations and strengthened its financial position, positioning the firm to meet heightened interest from Washington in securing critical rare earth supplies for domestic use.
