Aclara Resources Plans $1.3 Billion Investment in Rare Earths Mines

Aclara Resources’ $1.3 Billion Investment in Rare Earths Mines

Aclara Resources, a Canadian rare earths miner, announced plans to invest $1.3 billion across mining and processing projects in South America and the United States. The company aims to strengthen its mine-to-magnet strategy, enhancing supply chain independence for permanent magnets vital to EVs, wind turbines, and defense. Executive Vice-President Jose Augusto Palma detailed the investment split during a recent mining conference, highlighting $150-$170 million allocated for a Chilean mine and around $600 million for a Brazilian project.

Feasibility studies for these projects will conclude by mid-2026, paving the way for construction and operations expected to start by 2028. Additionally, Aclara plans to invest $300-$400 million in a separation plant and $400 million in a metallisation facility, both in the US. These facilities will enable full rare earth processing, reducing dependency on foreign suppliers.

Strategic Importance of Rare Earths and Aclara’s Role

Rare earth elements (REEs) are crucial for manufacturing high-performance permanent magnets used in electric vehicle motors, wind turbines, robotics, and defense systems. Global demand for REEs has surged with the rise of clean energy technologies and advanced electronics. Aclara’s mine-to-magnet approach aims to establish a geopolitically secure supply chain, addressing the critical need for these metals in North America and Latin America.

The US International Development Finance Corporation recently pledged up to $5 million to support Aclara’s feasibility study in Brazil. This backing underscores the strategic importance of diversifying rare earth supply chains amid global tensions. Earlier in 2025, Aclara also launched a semi-industrial heavy rare earths pilot plant in Brazil, signaling its commitment to scaling production.

SuperMetalPrice Commentary:

Aclara Resources’ $1.3 billion investment represents a pivotal move to secure rare earth supply chains outside traditional global hotspots. As geopolitical risks and supply constraints mount, North and South American projects will enhance market stability. The company’s integrated mine-to-magnet strategy sets a benchmark for vertical integration in rare earths, crucial for the clean energy transition and defense sectors. Investors and industry stakeholders should watch closely as these projects advance toward production in 2028, potentially reshaping the rare earths landscape.