Rare Element Resources Ltd. (OTCQB: REEMF) has announced continued progress on its rare earth processing and separation demonstration plant in Upton, Wyoming, maintaining its target to begin commissioning by the end of 2025 and achieve full operations in the first quarter of 2026.
The facility aims to produce up to 10 tonnes of separated neodymium/praseodymium (Nd/Pr) oxide, a key input for high‑performance magnets used in electric vehicles and defence applications.
The company confirmed that detailed design reviews for the Upton demonstration plant have been completed, incorporating system improvements and technical modifications into updated design documentation.
“We are happy with the progress being made on the Demonstration Plant and remain focused on full operations in early 2026,” said Ken Mushinski, President and Chief Executive Officer of Rare Element Resources (RER).
The project is backed by the U.S. Department of Energy (DOE) through a financial assistance award executed with General Atomics, whose affiliate Synchron is RER’s majority shareholder.
The Wyoming Energy Authority is also contributing US$4.4 million to the project.
RER, as a subrecipient to General Atomics, is funding the non‑federal share of the demonstration plant’s costs.
The company now estimates the construction cost from inception to approximately US$60 million, which includes ongoing design review expenses, upgrades, and system rework.
Operating costs during 2026 are projected to average US$1.5 million per month, covering materials, consumables, and wages for a workforce of about 30 employees.
RER’s collaboration with the DOE continues as the current financial award’s performance period nears its scheduled expiry on September 30, 2025.
Productive discussions are underway to designate RER as the primary award recipient under an amended DOE agreement.
This arrangement would give the company direct engagement with the department regarding expanded project scope and potential additional federal funding.
“Funding for, and efforts toward, plant commissioning, startup and operations are proceeding while the contract novation process is being finalised,” the company noted in an official statement.
The data derived from the demonstration facility will support optimisation of RER’s proprietary separation technology and guide engineering and cost parameters for a larger commercial-scale rare earth processing plant.
In parallel with its demonstration efforts, Rare Element Resources’ board has approved resuming the permitting and licensing process for the Bear Lodge Critical Rare Earth Project in Wyoming, including the Bear Lodge Mine.
Mushinski said: “Additionally, the company’s Board of Directors has approved the restart of permitting and licensing for the Bear Lodge Critical Rare Earth Project, which includes the Bear Lodge Mine.
“We plan on resuming the permitting process in the fourth quarter of 2025 and are exploring the timely options available under the current Administration’s critical minerals initiatives, including entering the Fast‑41 permitting process as a covered project.”
He added: “During a time when China’s market dominance, trade restrictions, and tariff pressures are demanding a diversified, secure rare earth supply, Bear Lodge will be available as an important secure domestic source of rare earth elements.”
The demonstration plant and Bear Lodge project position Rare Element Resources as one of the few U.S.-based firms advancing an integrated rare earth mining and separation capability aligned with national critical minerals priorities.