Ucore Rare Metals Secures C$36.3 Million in Canadian Funding to Develop Ontario Rare Earth Processing Facility

Ucore Rare Metals Inc. has received conditional approval for up to C$36.3 million in funding from the Canadian government to support development of a dedicated rare earth processing facility in Kingston, Ontario. This investment positions the company at the center of a strategy to reduce Western dependence on offshore separation and refining, particularly from China, which controls an estimated 70% of global rare earth mining and up to 90% of processing capacity according to the International Energy Agency (https://ibn.fm/39bOx).

The Canadian funding package includes up to C$26 million from Natural Resources Canada through its Critical Minerals Infrastructure Fund, along with as much as C$10 million from FedDev Ontario (https://ibn.fm/uCJl1). This capital will help establish a processing pathway for rare earth elements that are vital to defense, clean energy, and advanced manufacturing applications. The race to secure reliable supplies of these critical minerals has gained significant momentum in Canada and across North America.

Ucore's facility will utilize the company's proprietary RapidSX(TM) processing technology, which is designed to separate rare earth elements more efficiently than conventional solvent extraction methods. This technological advantage could prove crucial in establishing a competitive North American rare earth processing industry that can challenge China's current dominance in the sector.

The conditional funding enables Ucore Rare Metals to advance a Canadian solution to one of the most pressing mineral supply challenges facing North America. As global demand for rare earth elements continues to grow, particularly for electric vehicles, wind turbines, and defense applications, establishing domestic processing capabilities becomes increasingly strategic for economic and national security reasons.

This development represents a significant step toward creating a more resilient North American supply chain for critical minerals. By reducing reliance on Chinese processing facilities, Western nations can mitigate supply chain vulnerabilities that have become apparent in recent years. The Kingston facility could serve as a model for similar projects across North America, potentially leading to a more diversified and secure supply of these essential materials.

The investment also signals growing government recognition of the strategic importance of rare earth elements and the need to support domestic processing capabilities. As countries worldwide seek to transition to cleaner energy and maintain technological competitiveness, securing access to processed rare earths becomes increasingly vital for industrial policy and economic development.