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| Aclara Resources Rare Earth mining |
Aclara Resources announced a $1.3 billion investment plan targeting rare earth mining and processing facilities across South America and the United States. This significant capital injection underscores the growing strategic importance of rare earth metals in global supply chains, especially amid increasing demand from technology and defense sectors.
South America Projects to Advance Rare Earths Supply Chain
Aclara Resources will allocate $150 million to $170 million for a mine in Chile and $600 million for a mine in Brazil. Both projects aim to complete feasibility studies by mid-2026, with construction starting the same year. These efforts focus on strengthening raw material extraction, critical to meeting the surging global demand for rare earth elements used in permanent magnets and advanced electronics.
US Processing Facilities to Support Rare Earths Metallization and Separation
The company plans to invest $300 million to $400 million in a rare earth separation plant and $400 million in a metallization facility in the US. These processing plants will add value domestically, supporting supply chain security and reducing dependency on foreign sources. The International Development Finance Corporation has committed $5 million toward the Brazilian project's feasibility study, signaling international support for this initiative.
Strategic Importance of Rare Earths Amid Growing Demand
Rare earth metals are essential for manufacturing magnets used in electric vehicles, consumer electronics, and defense applications. Aclara’s investments reflect global efforts to diversify supply sources amid geopolitical risks and supply constraints. As a result, the company’s development timeline targets operational readiness by 2028, positioning it as a key player in the rare earth market.
ScrapInsight Commentary
Aclara’s $1.3 billion plan highlights accelerating investment in rare earths critical for technology and defense. The South America mines combined with US processing enhance supply chain resilience. This trend underscores rising geopolitical focus on securing essential raw materials for the circular economy and clean energy transition.
