Nova Scotia-based Ucore Rare Metals (TSX-V:UCU) has negotiated a deal to source 3,000 tonnes of total rare earth oxide (TREO) from Meteoric Resources’ (ASX:MEI) Caldeira Project in Brazil.
The TREO supply will be used at Ucore’s developing rare earth oxide (REO) production facility in Louisiana, US.
Ucore, which has a market capitalisation of C$38.9 million ($42.5 million), is currently undertaking heavy and light rare earth element separation at demonstration scale at its RapidSX commercialisation and demonstration plant in Ontario.
The company is working with the US Department of Defense and the Canadian Government to implement its technology transfer plan from demonstration scale to commercial scale at the Louisiana Strategic Metals Complex.
The RapidSX technology uses the same proven chemistry as solvent extraction, but requires 70% less floor space, lower capital and operating expenditure, a smaller physical and environmental footprint, and is up to seven times faster throughput, according to Ucore.
The company says the TREO identified at Meteoric’s Caldeira Rare Earth Ionic Clay Project represents an enriched heavy rare earth oxide (REO) basket with strongly enriched magnet REOs including terbium, dysprosium, neodymium and praseodymium.
Neodymium and praseodymium (NdPr) are the key ingredients in ultra-strong permanent magnets used in electric vehicles (EV), wind turbines and electronics.
Each EV requires an additional 0.5-kg of NdPr oxide versus an internal combustion vehicle, while each megawatt generated from a wind turbine is powered by 200kg of pure NdPr oxide.
Ucore Chairman Pat Ryan says the company is continuing to engage with like-minded partners to establish a western supply chain made up of diverse global projects.
“The proximity of South America, particularly Brazil, to the Port of New Orleans and onto our Alexandria, Louisiana facility is ideally situated as we establish rare earth manufacturing in the Southeast United States,” he says.
Ucore’s plan includes disrupting China’s control of the North American rare earth supply chain through the near-term establishment of a heavy and light rare earth processing facility in Louisiana and subsequent Strategic Metal Complexes in Canada and Alaska.
Ucore and Meteoric have signed a memorandum of understanding and will work towards establishing a binding definitive agreement for the supply of mixed rare earth carbonate.
Once in production, the expectation is that Ucore will purchase at least 3,000 tonnes of TREO each year from Caldeira.
Ucore says this could represent over 900 tonnes of NdPr, about 6 tonnes of terbium and 24 tonnes of dysprosium.
Ucore’s Louisiana facility is anticipated to start commissioning by the final quarter of 2025, with commercial production to follow in the first half of 2026.
Meanwhile, Meteoric – which has a market capitalisation of $235.2 million, is working towards obtaining a construction permit for the Caldeira Project by Q4 2025, with production scheduled to begin in the second half of 2027.
Western Australia-based Meteoric says Caldeira is one of the world’s lowest-cost sources of rare earths.
CEO Nick Holthouse says Ucore’s interest signals strong external market confidence in the Caldeira Project’s ability to progress to a final investment decision and into production.
Write to Angela East at Mining.com.au
Images: Ucore
