Rare Element Resources Gets Financial Incentive to Support Rare Earth Processing
- Category: tungsten‘s News
- Published on Tuesday, 12 October 2021 15:23
Rare Element Resources Ltd. (the “Company” or “RER”) is pleased to announce the conclusion of negotiations with the U.S. Department of Energy's Office of Energy Efficiency and Renewable Energy ("DoE/EERE") for an assistance agreement to provide approximately $21.9 million in government funding for the engineering, construction, and operation of a rare earth processing and separation demonstration plant located in Wyoming.
RER is a publicly traded strategic materials company focused on providing rare earth products for technology, energy, and defense applications through the advancement of the Bear Lodge Critical Rare Earth Project in northeast Wyoming. Bear Lodge is a significant mineralized area containing many of the less common and more valuable critical rare earths that are critical to many technologies such as high-strength permanent magnets, electronics, fiber optics, health and defense laser systems, as well as electric vehicles, solar panels, and wind turbines.
DoE/EERE has informed General Atomics, an affiliate of Synchron, the company's largest shareholder, that General Atomics has finalized the award. Rare Element Resources Ltd. is General Atomics' sub-recipient in the demonstration project, which will use the company's proprietary technology.
Synchron and General Atomics are private companies engaged in the development and production of advanced technology products and systems for the energy and defense sectors.
These negotiations have been completed and the award finalized, with the end result being a contribution of approximately US$21.9 million from the US Department of Energy/Department of Environment towards the total cost of the demonstration project.
The award represents approximately half of the total project cost, with the remainder of the funding going to the company. The company, along with other team members, is expected to finalize contractual arrangements with General Atomics to work on the project in the coming weeks.
Randall Scott, President and CEO, said: "We are very pleased to have finalized the DoE/EERE financial award. We thank the consortium led by General Atomics for their incredible contribution in confirming DoE/EERE financial support. The funding reflects the U.S. commitment to ensuring domestic production capacity for critical materials, and we are grateful to DoE/EERE for their hard work in completing the pre-award process.”
“The planned demonstration plant will produce commercial-grade neodymium/praseodymium ("Nd/Pr") rare earth high purity oxides for use in the production of high-strength permanent magnets using our proprietary processing and separation technology. These high-strength permanent magnets are a key component in the manufacture of electric vehicles, solar panels, and wind turbines, as well as other technological applications. We believe our rare earth processing project is time to meet the growing demand for these products," Randall Scott added.
RER expects the design, permitting, and licensing of the plant and construction to be finalized within 18-26 months. Operations to process and separate rare earth elements from previously stockpiled Bear Lodge Project ore are expected to be completed in another 12-14 months. The total timeline for the demonstration project is 40 months. The plant will eventually be located in Upton, Wyoming, near the Company's Bear Lodge Project.
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