The Pentagon is deepening its commitment to building a domestic supply chain for critical minerals, awarding Ucore Rare Metals Inc (TSX-V:UCU, OTCQX:UURAF) a $18.4 million contract to support the construction of its first commercial-scale rare earths separation facility in Louisiana.
The award, announced Friday, comes just weeks after the US Department of Defense committed $400 million to MP Materials, signaling a broader effort to secure supplies of heavy rare earth elements (HREEs), key inputs in defense technologies ranging from precision-guided missiles to radar systems and F-35 fighter jets. These elements are also critical in electric vehicles, robotics, artificial intelligence, and renewable energy systems.
As the US Department of Defense steps up efforts to establish a domestic supply chain for critical minerals, Commerce Resources Corp (TSX-V:CCE, OTCQX:CMRZF) is emphasizing the strategic potential of its Ashram deposit in Quebec.
“The DoD’s recent investment in MP Materials only validates Western government views and the strategic importance of securing reliable domestic REE sources,” Commerce CEO Nick Holthouse told Proactive.
Heavy rare earth elements (HREEs), including dysprosium and terbium, are critical for defense applications such as radar systems, missile guidance, and the F-35 jet engine, as well as for permanent magnets used in electric vehicles, robotics, and wind turbines. The Pentagon’s recent investments reflect growing concern over China’s dominant position in the rare earth market and recent export restrictions.
“Ashram’s scale, TREO grades and recovered basket distribution, particularly its high praseodymium (Pr), neodymium (Nd), dysprosium (Dy), and terbium (Tb) content, place it among the few deposits outside China that can anchor a North American and European rare earth supply chain,” Commerce’s Holthouse said.
Commerce has advanced pilot-scale work at Ashram, confirming its ability to produce a clean, high-grade monazite concentrate that is potentially saleable in its own right. Holthouse said the project is capable of supporting a staged development approach toward the production of separated rare earth oxides over time.
“We will continue to work closely with the Canadian government and its growing umbrella of industry support,” Holthouse added.
The twin developments underscore North America’s accelerating efforts to decouple from Chinese rare earth supply chains—one facility and one deposit at a time.