Ucore Rare Metals Secures C$36.3 Million Government Funding for Ontario Rare Earth Processing Facility

Ucore Rare Metals Inc. (TSX.V: UCU) (OTCQX: UURAF) has received conditional approval for up to C$36.3 million in funding from the Canadian government to support the development of a dedicated rare earth processing facility in Kingston, Ontario. This investment positions Ucore 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.

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. The capital will help establish a processing pathway for the rare earth elements samarium and gadolinium, which are essential to permanent magnet production and high-temperature defense applications. These materials are critical components in various technologies including electric vehicles, wind turbines, and military systems.

Ucore's vision includes disrupting China's control of the North American rare earth element supply chain through the near-term development of processing facilities. The company plans to establish a heavy and light rare-earth processing facility in Louisiana, subsequent strategic metals complexes in Canada and Alaska, and the longer-term development of its 100% controlled Bokan-Dotson Ridge Rare Heavy REE Project on Prince of Wales Island in Southeast Alaska. For more information about the company's operations and strategic direction, visit https://www.Ucore.com.

The implications of this development extend beyond corporate growth to broader geopolitical and economic considerations. As Western nations seek to secure critical mineral supply chains, facilities like Ucore's Kingston operation represent strategic investments in technological sovereignty. The processing of samarium and gadolinium specifically addresses supply vulnerabilities in sectors crucial to both economic competitiveness and national security. Permanent magnets containing these elements are essential for renewable energy technologies and advanced defense systems, making domestic processing capacity a matter of strategic importance.

This funding announcement reflects growing recognition of rare earth elements as critical materials for modern economies. The International Energy Agency has highlighted China's dominance in both mining and processing, creating supply chain vulnerabilities that Western nations are now actively addressing through strategic investments. Ucore's facility represents one component of a broader effort to develop alternative supply chains that reduce dependence on single-source suppliers. The latest news and updates relating to UURAF are available in the company's newsroom at https://ibn.fm/UURAF.

The development of domestic rare earth processing capabilities has significant implications for multiple industries. For manufacturers of electric vehicles and renewable energy equipment, reliable access to processed rare earth elements could reduce supply chain risks and price volatility. For defense contractors, domestic processing of materials like gadolinium ensures greater control over materials essential for high-temperature applications in military systems. The Kingston facility's development represents a step toward creating more resilient supply chains that can support both economic growth and strategic autonomy in critical technology sectors.