Plant nears operations — Rare Element Resources says Upton facility set to open before January
File photo from RER's open house — photo by Kim Dean
Mary Stroka
NLJ Reporter
Rare Element Resources’ demonstration plant in Upton remains on track to open before January, with full operations expected to accelerate in the first quarter of 2026, the company announced in a Nov. 5 news release.
Design reviews for the plant are complete, according to the release. The facility is intended to demonstrate that the company can operate a commercial plant that processes and separates rare earth elements, helping the United States develop an independent supply. System improvements have been incorporated into the final design, and the company plans to produce up to 10 tons of separated neodymium/praseodymium (Nd/Pr) oxide over a period of up to 10 months.
The U.S. Department of Energy contributed a financial assistance award in partnership with General Atomics, whose affiliate Synchron is RER’s majority shareholder. The Wyoming Energy Authority also awarded $4.4 million, the company said. RER, which will operate the plant, is funding the portion of costs not covered by the government.
The performance period of the award agreement between General Atomics and the Department of Energy ended Sept. 30, but RER has been having “productive discussions” with the DOE that would “establish RER as the primary recipient under an amended agreement, allowing RER the opportunity to directly discuss with the DOE potential further scope and funding for the demonstration plant,” the release said.
RER Vice President and Chief Administrative Officer Kelli Kast told the News Letter Journal the company may pursue additional projects, such as developing a heavy rare earth element separation process, separating other feed sources, or optimizing Nd/Pr separation.
“The novation to RER for the agreement with DOE will allow RER to be in a direct contracting relationship with our partners there,” Kast said.
She said the contract novation process — which replaces an existing contract with a new one — is underway between General Atomics and the DOE, and RER is prepared to assume the agreements once they are updated.
“Importantly, funding for, and efforts toward, plant commissioning, startup and operations are proceeding while the contract novation process is being finalized,” the release stated.
Kast told the NLJ that the DOE has already made nearly all of its contribution, so RER will fund nearly all of the remaining capital needed to continue the project. She said the novation process is not expected to affect the commissioning schedule or operating plan, as work continues in parallel.
“RER is grateful for the DOE and WEA’s investment in the demonstration plant, while funding the majority of the project with its own private capital,” she said.
Construction of the plant — from its beginning through this year’s design review, upgrades and rework — has cost
about $60 million, according to the release. The company expects operations in 2026, including materials and labor for about 30 employees, to cost about $1.5 million per month. Kast said RER is gradually adding workers to reach that staffing level.
“Wood PLC is staffing several positions, and we don’t anticipate any issues for the plant operations staffing at this time,” she told the NLJ.
RER President and CEO Ken Mushinski said in the release that the company is pleased with the progress on the plant and remains focused on making it fully operational early next year.
He said the board of directors has authorized permitting and licensing for the Bear Lodge Critical Rare Earth Project and Bear Lodge Mine to resume, and the company plans to move forward with that work this quarter.
Mushinski said RER is “exploring the timely options available under the current administration’s critical minerals initiatives, including entering the Fast-41 permitting process as a covered project.”
“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 domestic source of rare earth elements,” he said.
Kast said the company will continue to inform the community about the demonstration plant program and the Bear Lodge Project’s permitting process.
“We are so pleased to be on the cusp of plant operations, and we look forward to engaging fully in the restart of permitting for the Bear Lodge Project during this optimal time for our state and our country to secure a diversified rare earth supply from right here in Wyoming,” she said.