Ucore Rare Metals Inc. has received conditional approval for up to C$36.3 million in funding from the government of Canada to support the development of a dedicated rare earth processing facility in Kingston, Ontario. The 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 (https://ibn.fm/39bOx).
The race to secure reliable supplies of rare earth elements vital to defense, clean energy and advanced manufacturing has gained new momentum in Canada. According to Ucore, 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). The capital will help establish a processing pathway for the critical minerals that power modern technologies.
Ucore's facility will utilize the company's proprietary RapidSX processing technology, which is designed to separate rare earth elements more efficiently than conventional solvent extraction methods. This technological approach represents a significant advancement in processing capabilities that could reshape North American supply chains. The development comes at a crucial time as governments and industries recognize the strategic vulnerability created by concentrated supply sources.
Ultimately, the conditional funding enables Ucore Rare Metals to advance a Canadian solution to one of the most pressing mineral supply challenges facing North America. The facility's establishment in Ontario represents a concrete step toward building domestic capacity for processing these essential materials. This development has implications for multiple sectors including national security, renewable energy infrastructure, and advanced manufacturing capabilities that rely on rare earth elements.
The funding announcement reflects growing government recognition of the strategic importance of securing critical mineral supply chains within North America. As global competition for these resources intensifies, investments in domestic processing infrastructure become increasingly vital for economic security and technological independence. The Ucore facility represents one component of broader efforts to develop resilient supply chains for materials essential to modern economies and defense systems.
