Aclara Resources unveils plan for $277M rare earths facility in Louisiana

[Germanium crystals, samples of rare earth metal germanium]
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Aclara Resources (OTCPK:ARAAF [https://seekingalpha.com/symbol/ARAAF]) said Friday it plans to build [https://seekingalpha.com/pr/20278746-aclara-to-build-first-heavy-rare-earths-separation-facility-in-u-s-with-a-secured-sustainable] a $277 million heavy rare earths separation facility in Louisiana, the first of its type in the U.S.

Aclara (OTCPK:ARAAF [https://seekingalpha.com/symbol/ARAAF]) said the plant will process material from the company's clay deposits in Brazil and Chile for magnets used in electric vehicles and wind turbines, with construction expected to be completed by end-2027, although the project still needs to secure funding and offtake agreements.

The state of Louisiana is supporting the project with $46.4 million in tax incentives and grants.

If the plant achieves full production, Aclara (OTCPK:ARAAF [https://seekingalpha.com/symbol/ARAAF]) anticipates being able to supply more than 75% of the U.S. requirements for minerals dysprosium and terbium for electric vehicles by 2028.

Aclara (OTCPK:ARAAF [https://seekingalpha.com/symbol/ARAAF]), which is 57% owned by the Hochschild Group, has a $1 billion-plus plan to mine rare earths in Latin America and develop processing facilities in the U.S.

The company secured as much as $5 million in funding last month [https://seekingalpha.com/pr/20217012-aclara-receives-u-s-government-investment] from the U.S. International Development Finance Corporation for a Brazilian mining project, in an arrangement that includes an option to acquire shares in the company.

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