Aclara is expected to invest $1.3 billion in building a rare earth mine in South America and a processing plant in the US.

According to a Reuters report cited by Mining.com, Aclara Resources Executive Vice President Jose Augusto Palma said on Tuesday that the company hopes to invest $1.3 billion to build a rare earth mine in South America and a processing plant in the US.

The Toronto-listed company's latest investment plan includes investing $150-170 million to build a mine in Chile, $600 million for a mine in Brazil, $300-400 million for a separation plant, and $400 million for a metal plant, Palma stated.

Palma mentioned during a mining conference that the projects in Brazil and Chile aim to complete feasibility studies by mid-2026, begin construction within the same year, and start production before 2028.

Earlier this month, Aclara announced that the U.S. International Development Finance Corporation committed up to $5 million to assist in completing the feasibility study for its Brazil project.

Rare earths are used to produce magnets required by various industries, including weapons and consumer electronics.