Aclara Resources Inc (TSX: ARA) has reported major technical progress in the development of its rare earth metals and alloys initiative, which is being undertaken through Aclara Metals SpA, a joint venture equally owned with CAP S.A. The program focuses on producing high-purity rare earth metals and alloys that will serve global manufacturers of permanent magnets, a critical component used in advanced technologies such as electric vehicles, renewable energy systems, and electronics.
The project represents a key element of Aclara’s strategy to build a fully integrated rare earth supply chain. The planned metals and alloys facility will use separated rare earth oxides sourced from Aclara’s processing operations in the state of Louisiana in the United States. By connecting mining, processing, and alloy production capabilities, the company aims to establish a reliable and efficient supply of rare earth materials that meet the strict technical requirements of magnet producers while adhering to responsible environmental practices.
Aclara has now finalized the technical design of the metallurgical processes required to produce rare earth metals and alloys. These processes have been developed to align with environmental standards and the quality specifications demanded by industry customers. The company is currently preparing an internal prefeasibility study that is scheduled to be completed by March 2026.
The prefeasibility study will outline several key aspects of the project, including detailed production process design and a modular approach to facility development that corresponds with projected output from Aclara’s separation plant. It will also include early-stage capital and operating cost estimates and provide an economic evaluation examining a range of possible market conditions. Following completion of this work, the company intends to move toward a full feasibility study, which is expected to be finalized before the end of 2026.
Alongside the prefeasibility work, Aclara is preparing to build a demonstration facility that will test and validate its rare earth metals production technology. This pilot-scale operation will rely on molten salt electrolysis to produce rare earth metals and alloys. The facility is designed to produce approximately 175 kilograms per day of neodymium-praseodymium alloy with purity levels exceeding 99.5 percent. Importantly, the equipment configuration mirrors the design intended for the future commercial facility, allowing the company to verify industrial performance while reducing risks associated with scaling up operations.
Aclara has designed the electrolysis cell technology internally, creating a proprietary system. Since industrial standards for rare earth metal electrolysis outside China remain limited, the in-house development represents a valuable technological capability for the company.
Construction components, equipment specifications, and key consumables for the demonstration plant have already been identified and secured. The facility is expected to conduct four operating campaigns, each lasting between five and twenty days. These trials are planned to begin in the second half of 2026 and will run over a period of approximately three months.
The campaigns will evaluate the ability of the process to consistently deliver metals and alloys that meet customer quality standards under stable operating conditions. In addition, the tests will allow engineers and operators to gain hands-on experience with the production process and generate operational data that will feed into digital models designed to improve efficiency and performance.
After successful production of the neodymium-praseodymium alloy, the company may extend the demonstration program to include dysprosium oxide, allowing the creation of more advanced rare earth alloys used in high-performance magnets. Aclara has also conceptualized a method for producing terbium metal using a vacuum reduction process, although this step will not be included in the current demonstration stage.
Aclara’s leadership highlighted the importance of the initiative for strengthening the company’s position across the rare earth value chain. By combining mining resources in South America, separation capabilities in the United States, and metallurgical expertise through the partnership with CAP, the company aims to deliver a secure and sustainable supply of both light and heavy rare earth materials.
Aclara Resources is a Toronto-listed company focused on building an integrated platform for rare earth materials used in permanent magnets. Its mineral projects include the Carina project in Brazil and the Penco Module in Chile, both of which employ the company’s proprietary Circular Mineral Harvesting process designed to reduce water consumption and environmental impact through recycling and efficient resource use.
CAP SA, Aclara’s partner in the metals and alloys venture, is a long-established Chilean industrial group involved in iron ore mining, steel production, and related infrastructure. The company operates several mining sites and industrial facilities across Chile and South America and brings decades of metallurgical expertise to the collaboration.
