US government to assist Aclara with location study for new facility

Canada’s Aclara Resources (TSX: ARA) announced on Wednesday a collaboration with the U.S. Department of Commerce’s International Trade Administration to find the best location for its planned rare earth separation facility.

This partnership, through the SelectUSA program, aims to find a cost-effective site for the plant, and to contribute to a resilient supply chain for critical materials essential in the U.S. high-tech sectors.

The location study will evaluate potential sites for Aclara’s separation facility with a focus on operational efficiency, cost management, and project timelines, the rare earths developer said in a statement.

“Aclara believes that it can contribute towards securing a resilient and independent supply chain for rare earths, which are critical materials for electromobility and other key high-tech sectors of the U.S. economy,” chief financial officer François Motte said.

Aclara aims to produce high-purity mixed rare earth concentrate (MREC) from its Penco module in Chile and the Carina project in Brazil. The company plans to use its patented technology designed to extract heavy rare earths from ionic clays. 

It uses an extraction process that it says reduces environmental impacts by eliminating the need for explosives and milling. The company says its recycles 95% of its water and uses common fertilizers, leaving no liquid waste that would require tailings dams.

The SelectUSA scheme is dedicated to fostering business investment that promotes economic development and job creation across the nation. Since its inception, it has facilitated over US$250 billion in investments, resulting in the creation or retention of more than 230,000 jobs.