Aclara Resources plans to invest $1.3bn in rare earths mines 

Canadian rare earths company Aclara Resources has announced plans to invest $1.3 billion across rare earth mining operations in South America and processing facilities in the United States, as the firm positions itself to capitalize on growing demand for critical minerals essential to clean energy and advanced technologies.

The investment details were revealed by Jose Augusto Palma, Aclara’s executive vice-president, during a recent mining industry conference, according to Reuters. The Toronto-listed company intends to allocate between $150 million and $170 million to a project in Chile, while approximately $600 million will be directed toward developing a mine in Brazil.

Beyond mining operations, Aclara will invest an additional $300-400 million in a separation plant and another $400 million in a metallisation facility. These processing investments underscore the company’s strategic focus on controlling multiple stages of the rare earth elements (REE) supply chain.

Feasibility studies for both the Brazilian and Chilean projects are expected to be completed by mid-2026, with construction planned to begin the same year. The company anticipates the operations will commence production by 2028, positioning Aclara to meet growing market demand for these critical minerals.

The company received a significant boost earlier this month when the U.S. International Development Finance Corporation committed up to $5 million to support the feasibility study for Aclara’s Brazil project. This backing from a U.S. government agency signals growing American interest in securing stable rare earth supplies outside of China, which currently dominates global production.

Aclara is developing what it describes as a “mine-to-magnet” strategy to establish a geopolitically independent supply chain for permanent magnets. These components are crucial for technologies central to the energy transition, including electric vehicle motors, wind turbines, robotics, and advanced defense systems.

REEs comprise a group of 17 metals with unique magnetic, optical, and conductive properties that have become increasingly vital to modern technology. The elements are essential components in consumer electronics, clean energy infrastructure, and defense applications, making them strategically important for national security and the transition to renewable energy.

The announcement comes at a time of growing global competition for critical minerals. Western nations have been working to reduce dependency on Chinese rare earth supplies, which have dominated the market for decades. China currently controls approximately 85% of global rare earth processing capacity, creating supply vulnerabilities for other industrial economies.

In July, Aclara disclosed that it was in ongoing discussions with multiple U.S. government agencies regarding potential financing for its broader $1.5 billion plan to mine rare earths in Latin America. This engagement with U.S. authorities reflects Washington’s strategic interest in developing alternative supply chains for critical minerals.

The company has already made significant progress on its Brazilian operations. In April, Aclara inaugurated a semi-industrial heavy rare earths pilot plant facility in Aparecida de Goiania, Goias, Brazil, demonstrating its commitment to developing rare earth processing capabilities in the region.

Industry analysts note that Aclara’s investments align with broader trends in the mining sector, where companies are increasingly looking to secure positions in the critical minerals supply chain. The rare earths market is projected to grow substantially in the coming decades as demand for clean energy technologies accelerates globally.

By establishing operations across both mining and processing, Aclara aims to create a more resilient supply chain that can withstand geopolitical pressures while meeting the growing market demand for these essential materials.