TSXARA:CCARA:CCAclara Resources$0.43CAD0.43CAD-0.04(-8.51%)104.2kAs of:February 12, 2024 3:59 PM

Vertical integration

In addition to advancing two ionic clay rare earth projects in South America, Aclara is building out the entire value chain—from mine to magnet:

Separation | Aclara Technologies

Aclara is advancing the development of a heavy rare earths separation facility in Louisiana, United States, through its wholly owned subsidiary, Aclara Technologies Inc. This facility will be the first of its kind in the U.S. with a secure ionic clay feed, sourced from Aclara’s Carina Project in Brazil and Penco Module in Chile. (Read the press release here).

The Project is scheduled for completion in 2027 and provided the achievement of full production, Aclara anticipates being able to supply more than 75% of the U.S. requirements of DyTb for electric vehicles by 2028.

The separation technology being developed by Aclara is designed with scalability in mind, allowing potential capacity expansion to process material from other ionic clay deposits or compatible feedstocks in the future.

Project Development 
Aclara will invest approximately US$277 million to develop the Project on an 82-acre Louisiana Economic Development (LED) certified site at the Port of Vinton.  The site offers direct road and waterway access via the Gulf Intracoastal Waterway and proximity to chlor-alkali facilities, with the LED Certified designation allowing for immediate industrial development and fast-track construction.
The Company is also planning an additional investment to construct a metals and alloys plant on the property, to supportthe high-performance permanent magnet industry.
Hatch Ltd. has been retained to develop the engineering of the Project in addition to its work relating to the Company’s Carina project located in the State of Goiás, Brazil, ensuring strong coordination across projects, driving cost efficiencies, and optimizing schedules, with an aim to reduce execution risk.
This project aims to be breaking ground in H2 2026.

LED (Louisiana Economic Development) Incentive Programs
- Industrial Tax Exemption Program (ITEP): Provides an 80% ad     valorem tax exemption for an initial five-year term with a potential     five-year renewal. Estimated value: US$29.3 million
- High Impact Jobs Program (HIP): Provides performance-based cash grants ranging from 18% to 22% of wages for qualifying new jobs, depending on wage levels relative to parish averages. Initial three-year term with two-year renewal option. Estimated value: US$11.6 million
- Performance-Based Infrastructure Grant: Provides reimbursement for utility     and road infrastructure improvements through a cooperative endeavor     agreement. Estimated value: US$3.0 million
- LED FastStart®: Provides customized employment recruitment and training services to support facility start-up and operations. Estimated value: US$2.5 million

Partnership with Virginia Tech
Aclara has a strategic partnership with Virginia Polytechnic Institute and State University for the operation of its rare earths separation pilot plant. The facility will showcase Aclara’s solvent extraction technology for producing individual high-purity light and heavy rare earth elements. The separation pilot plant, currently under implementation at the Virginia Tech Corporate Research Center, has been specifically designed based on the characteristics of Aclara’s Carina Project mixed rare earth carbonate production. The facility is expected to produce over 99.5% pure didymium (NdPr), terbium (Tb), and dysprosium (Dy), demonstrating the seamless integration of Aclara’s Brazil and U.S. operations.

Metals and alloys | Aclara Metals

Aclara is expanding its rare earths value chain through Aclara Metals, a joint venture with CAP S.A., its strategic partner in Chile. The objective is to produce rare earth metals and alloys that meet the specifications required by permanent magnet manufacturers—particularly in the electric vehicle (EV) sector.

The facility will utilize rare earth oxides from Aclara’s mining and separation processes to manufacture high-purity alloys tailored to magnet production. Developed in close collaboration with the Engineering Department at Huachipato (CAP S.A.’s steelmaking subsidiary), the program integrates Huachipato’s metallurgical expertise with international site visits and pilot-scale production campaigns.

Notably, the team has already achieved low-volume production of metallic dysprosium and developed a conceptual flowsheet for full-scale metals and alloys production. The industrial facility will adapt proven metallurgical technologies while meeting stringent emissions and environmental standards.

Key processes under evaluation
‍•Electrolytic reduction: Production of NdPr alloy with 99.5% purity and ferro-dysprosium.
Vacuum induction melting: Production of metallic terbium with 99.4% purity.
Strip casting furnace: Alloy production incorporating NdPr, Dy, and Tb.

Next Steps
Pilot plant design (Q2 2025): Design finalized to evaluate key process parameters, reduce technological risk, and validate product quality.
Location analysis (Q3 2025): Assess site-specific factors including emissions, regulatory requirements, and material handling considerations.  
Conceptual engineering (Q3 2025): Completion of engineering work based on pilot testing, in collaboration with Huachipato and external technical advisors.
Pre-Feasibility Study (Q4 2025): A comprehensive technical and economic assessment to validate project viability and inform a potential full feasibility study.

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