Akara Company Builds Rare Earth Separation Plant in the US

Published: Oct 29, 2025 16:34
Source: Ministry of Natural Resources of the People's Repu

According to Mining.com, Aclara Resources plans to invest $277 million to build a heavy rare earth separation facility in Louisiana, calling it a milestone for US critical mineral independence.

On the 24th, Aclara stated that the plant will process raw material from its ion-adsorption rare earth ore in Brazil and Chile, and is expected to be completed in 2027, depending on financing and permitting outcomes.

The project is expected to cover 33 hectares at the Port of Vinton near Lake Charles, with access to the Gulf Intracoastal Waterway and nearby transport to chlor-alkali facilities required by Aclara's smelter. The site's infrastructure, chemical industrial base, and logistics channels were key factors in the selection, the company said in a press release.

"Our project is unique in the Western world," said Ramon Barua, CEO of Aclara. "By directly developing our ion-adsorption deposits, this will be the only integrated heavy rare earth separation facility capable of large-scale production today."

Virginia Tech (VT)

Aclara is 57% owned by Hochschild Mining. The company said it plans to supply three-quarters of US dysprosium and terbium demand by 2028. This equates to annual supply of 200 mt of dysprosium, 30 mt of terbium, and 1,400 mt of well-separated oxides such as Pr-Nd.

The Louisiana-based smelter will serve as a supply chain hub for rare earths used in EVs, wind turbines, drones, and national defense systems in the West.

The company intends to use technology co-developed with VT, whose pilot plant is scheduled to begin operations in early 2026.

Ucore Smelter

Aclara intends to partner with Ucore Rare Metals, which is building its own processing plant in Alexandria, Louisiana. Ucore also operates a rare earth demonstration plant in Kingston, Ontario.

This month, Aclara announced indicated ore resources at the Carina project of 236.3 million mt, with grades of 0.0293% Pr-Nd oxide, 0.0043% dysprosium, and 0.00068% terbium, totaling 371,492 mt of TREO. Inferred resources were 48 million mt, grading 0.0236% Pr-Nd, 0.0041% dysprosium, and 0.00064% terbium, for a TREO of 61,675 mt.

Based on a preliminary economic assessment completed in January 2024, the project is expected to produce 191 mt of dysprosium and terbium annually. The study estimates that, with an 8% discount rate, the mine has a 22-year operating life, a net present value of $1.5 billion, and an internal rate of return of 27%. In September, under a bilateral critical minerals cooperation framework agreement, Aclara received $500 in funding from the U.S. government to develop the Carina rare earth mine.

Penco Project

Aclara is advancing the smaller-scale Penco project in Chile on the same timeline. The project has measured and indicated ore resources of 27.5 million mt at a TREO grade of 0.2292%, representing a total rare earth oxide content of 62,900 mt. Last year, the environmental impact assessment report for the Penco project was approved after enhancements to social and water management standards.

The refinery in Louisiana is designed with flexibility to process ion-adsorption type rare earth ore from other sources or compatible raw materials. As the resource base in South America expands, Aclara plans to increase production. Earlier this year, the company began construction of a pilot plant in Brazil, aiming to validate smelting recovery rates and optimize its proprietary separation process.

The move to Louisiana is part of a wave of investment in rare earth separation, processing, and magnet production in North America, including Apple Inc. and the U.S. federal government’s stake in MP Materials (MPM). The U.S. Department of Defense (DoD) has funded several magnet production and processing projects under Title III of the Defense Production Act.

Aclara was spun off from Hochschild Mining in 2021, focusing on the mining of ion-adsorption type rare earth ore using a patented process based on water rather than traditional acid leaching. The company states that this method reduces waste and avoids generating radioactive by-products, addressing major environmental challenges in the rare earth industry.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
[SMM Analysis] Stainless Steel Social Inventory Saw a Slight Buildup, While High Supply Coupled with Cautious Downstream Demand Constrained Destocking
Apr 3, 2026 16:06
[SMM Analysis] Stainless Steel Social Inventory Saw a Slight Buildup, While High Supply Coupled with Cautious Downstream Demand Constrained Destocking
Read More
[SMM Analysis] Stainless Steel Social Inventory Saw a Slight Buildup, While High Supply Coupled with Cautious Downstream Demand Constrained Destocking
[SMM Analysis] Stainless Steel Social Inventory Saw a Slight Buildup, While High Supply Coupled with Cautious Downstream Demand Constrained Destocking
Apr 3, 2026 16:06
Xinghe Molybdenum Has Abundant Resources and Will Commence Construction in H2 2026
Apr 3, 2026 15:41
Xinghe Molybdenum Has Abundant Resources and Will Commence Construction in H2 2026
Read More
Xinghe Molybdenum Has Abundant Resources and Will Commence Construction in H2 2026
Xinghe Molybdenum Has Abundant Resources and Will Commence Construction in H2 2026
Yankuang Energy stated at its 2025 annual results briefing that, according to the feasibility study report prepared by Changsha Engineering & Research Institute Ltd. of Nonferrous Metallurgy, Xinghe Molybdenum (Caosiyao Molybdenum Mine) is located in Xinghe County, Ulanqab City, Inner Mongolia Autonomous Region, and has molybdenum ore resources of 1.04 billion mt, metal content of 1.089 million mt, an average grade of 0.105%, and associated metals including tungsten and zinc. The designed capacity is 16.5 million mt/year of raw ore, and annual molybdenum concentrate production will reach 30,800 mt/year upon reaching full production. In February 2026, it was issued the electronic certificate for a mining license with an annual mining scale of 16.5 million mt, and construction is expected to commence in H2 2026, with a construction period of 1.5-2 years.
Apr 3, 2026 15:41
Angang Steel's April ferromolybdenum tender price was 282,800/mt
Apr 3, 2026 15:24
Angang Steel's April ferromolybdenum tender price was 282,800/mt
Read More
Angang Steel's April ferromolybdenum tender price was 282,800/mt
Angang Steel's April ferromolybdenum tender price was 282,800/mt
[Molybdenum-Iron Steel Tender Information] SMM, April 3: Angang Steel's latest ferromolybdenum tender price was 282,800 yuan/mt (acceptance bill), with a quantity of 210 mt and a delivery date of April 30.
Apr 3, 2026 15:24
Akara Company Builds Rare Earth Separation Plant in the US - Shanghai Metals Market (SMM)