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| Aclara Resources |
Strategic Expansion Targets Chile, Brazil, and US Processing Capacities
Canadian miner Aclara Resources is intensifying its rare earths expansion, announcing a $1.3 billion investment across South American mines and US-based processing facilities. This move underscores the company’s commitment to building a geopolitically independent supply chain for permanent magnets, crucial to sectors like EVs, wind energy, robotics, and defense.
Investment Breakdown and Project Timeline
Aclara will channel $150–170 million into a Chilean project, while its Brazilian rare earth mine will receive around $600 million. In parallel, the company plans to allocate $300–400 million for a separation plant and $400 million for a metallisation facility in the United States.
Feasibility studies for both the Chile and Brazil projects are expected by mid-2026, positioning construction to start the same year. Operations are projected to commence by 2028. This integrated timeline supports Aclara’s mine-to-magnet strategy, enhancing value chain control and supply security.
US Government and Strategic Supply Chain Goals
In September, the US International Development Finance Corporation (DFC) committed $5 million toward the feasibility study of Aclara's Brazil project. This signals growing US interest in rare earths sourced from non-Chinese supply chains. The company is also engaged in discussions with US agencies to potentially finance its broader $1.5 billion Latin American strategy.
In April, Aclara opened a semi-industrial pilot plant for heavy rare earths in Aparecida de Goiania, Brazil, reinforcing its leadership in rare earth processing technology.
Market Context and Technology Demand
Rare Earth Elements (REEs), comprising 17 critical metals, are vital in emerging technologies due to their magnetic, conductive, and optical properties. Rising global demand—driven by energy transition technologies and military applications—has elevated the strategic importance of rare earths. Consequently, Aclara’s expansion aligns with national interests in supply chain resilience and critical mineral independence.
ScrapInsight Commentary
Aclara’s $1.3bn deployment marks a pivotal step toward Western-aligned rare earth independence. The integration of upstream mining with downstream processing enhances vertical resilience. If feasibility milestones are met by 2026, pricing pressures on heavy REEs may ease post-2028, especially in magnet-grade oxides. However, permitting, geopolitical dynamics, and offtake agreements will remain key to execution.
