Aclara Announces Rare Earths Processing in the U.S.A

TORONTO, ON / ACCESSWIRE / April 3, 2024 / Aclara Resources Inc. ("Aclara" or the "Company") (TSX:ARA) is pleased to announce that it has incorporated a U.S. based subsidiary, Aclara Technologies Inc. ("Aclara Technologies"), to develop its rare earths separation capabilities in the United States. This development will allow Aclara to better position itself to carry out all of the stages leading up to the production of metal and alloys for high performance permanent magnets, following the recent announcement that the Company has entered into a joint venture with CAP to develop metal and alloys capabilities. As a result, Aclara is positioned to become the first vertically integrated heavy rare earths company outside of Asia.

Aclara CEO, Ramon Barua, commented:

"This strategic decision is only possible because of Aclara's unique feed of clean heavy rare earths, particularly Dysprosium and Terbium, which is expected to be sourced from two stable and investment friendly countries in the Americas. This competitive advantage distinguishes Aclara from other players in the industry. By going further in the vertical integration of rare earths production, we improve our ability to commercialize our product while retaining the economic margins of this important stage in the value chain. Consequently, end users will benefit from a more cost competitive product built with traceable, fully ESG compliant materials, resulting in a stable long-term supply of heavy rare earths. We understand the importance of building a geopolitically independent supply chain for critical materials and we aspire to become a leader in that effort."

Aclara's Vertical Integration Strategy

Foto: Accesswire

The decision to integrate vertically responds to the need for creating a geopolitically independent supply chain for permanent magnets, a much-needed performance enhancer for the motors of electric vehicles, wind turbines, robotics and other applications associated with the decarbonization of our planet.

Aclara Technologies is expected to source high purity mixed rare earths carbonates from Aclara's extraction modules in Chile and Brazil. These carbonates will be then converted into individual rare earths oxides in the separation facility. For this purpose, Aclara Technologies has awarded a contract to the Saskatchewan Research Council ("SRC") to develop a production flowsheet specially designed for its premium carbonate, and to Hatch Ltd. ("Hatch") to work on the engineering of the proposed separation facility. Under the terms of the agreement, SRC will develop a conceptual Solvent Extraction ("SX") separation process, which will serve as the basis for Hatch to conduct a Class 5-AACE CAPEX and OPEX estimation for the rare earth separation facility. The aim of this conceptual analysis is to design a plant capable of processing Aclara's mixed rare earth carbonates into separated neodymium and praseodymium (NdPr) oxide (with a purity of 99.0-99.9% by weight) and dysprosium (Dy) and terbium (Tb) oxides (with a purity of 99.5-99.99% by weight). The engineering study is expected to be completed by the end of the third quarter of 2024.