Aclara Resources (TSX:ARA) says the Export-Import Bank of the United States (EXIM) has expressed interest in providing up to US$750 million ($1.04 billion) in financing for its planned rare earth separation, metals, and alloys facility in Louisiana.
The US export credit agency on Friday issued a letter of interest after reviewing preliminary information on the facility located in Port of Vinton.
The proposed financing falls under EXIM’s Make More in America (MMIA) initiative designed to support US manufacturing, domestic supply chains, and job creation through projects with an export nexus.
Building a mine-to-alloy supply chain
The facility, known as Project Dynamo, is designed to process rare earth carbonates produced from Aclara’s South American ionic clay deposits and separate them into individual rare earth oxides.
These include neodymium-praseodymium, dysprosium, terbium, samarium, gadolinium, and yttrium.
Aclara currently holds two rare earth development projects: its flagship Carina Project in Goiás, Brazil; and the Penco Module in Chile’s Biobío region.
The Louisiana facility is also planned to incorporate metal and alloy processing capabilities, allowing separated rare earth oxides to be converted into alloys used in high-performance permanent magnets and other advanced technologies.
“EXIM’s interest in financing our separation, metals, and alloys facility in Louisiana represents a key milestone for Aclara and a strong validation of our strategy to build an integrated mine-to-alloy rare earth supply chain,” Aclara CEO Ramón Barúa says.
Technology testing underway
Aclara is currently demonstrating its proprietary solvent extraction technology for rare earth separation at its Virginia Tech facility.
At the same time, the company is advancing its metal and alloy capabilities through the operation of an industrial-scale molten salt electrolysis cell in Chile. Aclara says this would provide a pathway to validate the downstream conversion of its separated rare earths.
The company believes these technology demonstration programs and engineering work will position Project Dynamo to be construction-ready by the end of 2026.
“The potential support from EXIM would provide a pathway to bring these capabilities together at industrial scale,” Barúa says.
The potential US$750 million financing adds to US government efforts to establish domestic rare earth processing capacity and reduce reliance on foreign supply chains for materials used in advanced technologies.
Aclara Resources is focused on building a vertically integrated supply chain for rare earth alloys used in permanent magnets.
Write to Jackson Chen at Mining.com.au
Image: Aclara Resources
