• MEI signs MOU for offtake from its Caldeira rare earths project in Brazil
  • US company Ucore will take 3,000t per year at its planned Louisiana facility
  • Company part of global plan to disrupt China’s chokehold on REE supply

 

Special Report: Meteoric Resources has signed a memorandum of understanding with Ucore Rare Metals for the supply of 3000 metric tonnes of total rare earth oxide from its Caldeira project in Brazil, securing material for Ucore’s rare earth oxide production facility in Louisiana, USA.

Ucore’s vision is to become a leading advanced technology company, providing best-in-class metal separation products and services to the mining and mineral extraction industry.

Through strategic partnerships, this plan includes disrupting Chinese control of the North American rare earths supply chain through the near-term establishment of a heavy and light rare earth processing facility in the US state of Louisiana and subsequent strategic metal complexes in Canada and Alaska.

Clearly, Ucore sees the value in Meteoric Resources’ (ASX:MEI) Caldeira, which hosts an  enriched heavy REO basket with strongly enriched magnet REOs including terbium, dysprosium, neodymium, and praseodymium.

 

Deal highlights project potential

During the term of the MOU, the parties will work towards establishing a binding definitive agreement for the supply of mixed rare earth carbonate from Caldeira to the Louisiana strategic metals complex.

Once the parties are in production, they envision that Ucore will purchase a minimum quantity of 3,000t of TREO annually from Caldeira – which could represent over 900t of NdPr, approximately 6t of Tb and 24t of Dy.

“We are very pleased to be bringing this important agreement with Ucore to market,” MEI CEO Nick Holthouse said.

“This builds on Meteoric’s MREC offtake strategy, and we are delighted to support Ucore in their march towards becoming an alternative separating option for a Western Rare Earth supply chain.

“Ucore’s interest signals strong external market confidence in the Caldeira project’s ability to progress to an FID and into production.

“We look forward to working with Ucore and having the benefit of their technical support and US Government relationships as we continue to pursue and develop our own downstream capabilities and progress to a binding commercial arrangement.”

 

Louisiana facility targeting operations in 2026

Ucore’s initial production of REO in Louisiana is forecast to start commissioning by Q4 2025 and commercial operations are expected to commence in the first half of 2026.

“Ucore is delighted to have the opportunity to work with Meteoric and its world-class Caldeira project as we continue to engage with like-minded partners in establishing a Western supply chain made up of diverse global projects,” Ucore chairman and CEO Pat Ryan said.

“The proximity of South America, particularly Brazil, to the Port of New Orleans and onto our Alexandria, Louisiana facility is ideally situated as we establish rare earth manufacturing in the south-east United States.”

Meteoric expects to obtain a construction permit by Q4 2025 and aims to commence MREC production during the second half of 2027.

 

 

This article was developed in collaboration with Meteoric Resources, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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