Aclara Resources and CAP Unveil Innovative Rare Earth Metals Demonstration Plant

On October 7, 2026, Aclara Resources Inc. (TSX: ARA) proudly announced the inauguration of a state-of-the-art demonstration plant dedicated to producing rare earth metals and alloys. This significant milestone represents a collaborative effort between Aclara Metals SpA, a 50/50 joint venture with CAP S.A., and symbolizes a major advancement in the technology used to produce these vital materials. The official launch event took place in Talcahuano, where numerous dignitaries and executives from both companies were present, including Sergio Giacaman, the Governor of the Biobío Region, who expressed his support for the initiative.

The new plant utilizes a unique molten salt electrolysis process aimed at converting neodymium and praseodymium (commonly referred to as NdPr) oxides into valuable metals and alloys. Designed for optimal efficiency, the facility has a nominal production capacity of up to 175 kilograms of rare earth metals per day, with a target purity of at least 99.5%. This innovative approach is expected to validate the technology at an industrial scale under actual operating conditions, offering promising insights into the future of metal production in this sector.

Throughout its operational campaign, the demonstration plant will aim to validate its ability to produce metals and alloys consistently, adhering to the quality benchmarks set forth by prospective international clients. This operational phase is not just about production; it’s also an opportunity to gather crucial operational data that will inform the basic engineering of Aclara Metals’ future industrial project in Louisiana, United States. Such data will support the development of predictive digital models, optimizing process efficiency, and enhancing the stability of the electrolysis cells over time.

One of the unique features of this plant is that its detailed design was developed entirely by the experts at Aclara Metals and the Huachipato steelworks, marking it as proprietary technology for the company. Given that there are no established industrial standards yet for the metallurgical processes involved in the production of rare earths, the know-how acquired by Aclara is considered a high-value asset in this competitive landscape.

Rare earth metals and alloys are crucial components in the manufacture of permanent magnets used in various industries, including electromobility, robotics, and renewable energy generation. The new initiative is poised to foster technological advancement in Chile, fostering knowledge that is expected to contribute significantly to ongoing energy transition efforts.

Commitment to a Sustainable Future

The inauguration of the rare earth metals demonstration plant aligns perfectly with Aclara and CAP’s broader strategy of creating an integrated, traceable, and sustainable value chain in the rare earth industry. This pipeline stretches from the moments of extraction and separation all the way to the manufacturing of the essential metals and alloys.

As part of this ambitious venture, extraction efforts are set to commence at the Penco Module, recognized as Chile’s inaugural rare earth deposit. Jorge Salvatierra, Chairman of the Board of CAP, emphasized that "this plant exemplifies how the skills and knowledge amassed over decades at Huachipato can be introduced into emerging industries. By fusing our metallurgical experience with innovative technological advancements, we aim to provide robust contributions to the critical minerals value chain associated with the global energy transition."

Ramón Barúa, CEO of Aclara, also commented on the significance of this project, stating that it represents a pivotal step toward developing an integrated supply chain for rare earth materials. Barúa noted that the demonstration plant complements Aclara's existing projects, including concentration pilot plants in Brazil and a separation plant in Virginia, USA, thereby creating a comprehensive production platform that encompasses all aspects from mining to alloy fabrication.

The project anticipates expanding its scope further by exploring additional stages of production, such as incorporating dysprosium oxide to create an NdPrDy alloy in future campaigns. This advancement illustrates Aclara’s commitment to ramping up its technological prowess in a field where metallization capabilities are limited, particularly in Western regions.

Looking Forward

As Aclara Resources continues to lead innovations in rare earth production, its multifaceted approach demonstrates the potential for sustainable practices within a rapidly evolving market. The establishment of this demonstration plant not only marks a crucial step for Aclara but also sets a standard for others in the industry, paving the way toward a more responsible and efficient rare earth production process.

For more information about Aclara and its groundbreaking initiatives in sustainable resource management, visit their official website.