US Critical Materials, Idaho lab build rare earths plant

U.S. Critical Materials (US-OTC: USCMF) and the Idaho National Laboratory are building a pilot-scale processing plant for rare earths in the western state as the country seeks to lessen dependence on China. 

The new development is designed to process 1–2 tons (0.9 to 1.8 tonnes) of high-grade ore per day—sourced from U.S. Critical Materials’ Sheep Creek deposit in Montana. It holds critical minerals and rare earths including neodymium, praseodymium, niobium, strontium, samarium, scandium and heavy rare earths such as gadolinium, terbium, dysprosium and yttrium. 

“These materials are the backbone of our military, energy and technological dominance,” company president Jim Hedrick said in a release. “This pilot plant will accelerate the development of next-generation separation and refining methods to ensure America no longer relies on foreign adversaries for resources essential to national defence.”

Only one rare earth processing plant is fully operational in the United States today—MP Materials’ (NYSE: MP) facility at Mountain Pass, Calif. However, others being developed include Lynas Rare Earths’ (ASX: LYC) plant in Texas with U.S. Department of Defense support, expected to open in 2026. Energy Fuels (NYSE-A: UUUU; TSX: EFR) is already producing separated neodymium-praseodymium at its White Mesa mill in Utah. 

The cost of the plant and when it would start weren’t immediately clear. Typical timelines for similar facilities make it reasonable to expect operations next year. US Critical Minerals, which has a rough enterprise value of $4 million, describes itself as privately held although it trades on the over-the-counter market. The Idaho lab, part of the U.S. Department of Energy and the designer of the first nuclear reactor for a submarine in the 1950s, is globally recognized for its expertise in advanced separation science. 

High grades

Utah-based U.S. Critical Minerals has reported rare earth samples from 125 feet (38.1 metres) underground at its main property that exceed the grades of any other domestic rare earth resource. Sheep Creek also contains high grade gallium, which will be one of the first minerals to be processed—and is vital for national security applications, the company said. 

The initiative aligns with President Trump’s March Executive Order declaring a national emergency over America’s reliance on foreign adversaries for these strategic materials. China controls the mining, processing and refining of these essential elements and has placed export controls on many of the metals, although trade negotiations are reportedly near a breakthrough to ease them. 

US Critical Materials said lab scientists will contribute technical expertise to ensure the pilot plant integrates environmentally responsible refining processes that can scale to full production. The pilot facility will now validate proprietary processing methodologies at scale, ensuring full-scale production capability for America’s defence needs, the company said.

It will also demonstrate innovative mineral processing and separation technologies and establish intellectual property and scalable domestic production capabilities for critical materials, it added. 

Hedrick said: “There is no more pressing national security issue than securing America’s supply of rare earths and critical minerals.”