Akara Company Builds Rare Earth Separation Plant in the US

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.