Phoenix Tailings will build a $375 million rare earth processing facility in Rochester, New York. Some operations are slated to start next year, with full production expected in 2028.
Phoenix Tailings will build a commercial-scale rare earth processing facility worth $375 million in Rochester, New York Governor Kathy Hochul said on Tuesday.
The 500,000-square-foot facility will sit in Rochester's Eastman Business Park. Hochul said in a statement that some operations are slated to start next year and full production is expected in 2028.
It is expected to process about 18,000 tons of rare earth material each year, the statement said. New York state will provide $3 million in performance-based tax credits for the project.
The United States is pouring billions into new rare earth plants to loosen China's grip on the minerals, which go into products from electric vehicles to fighter jets. Most of that capacity won't come online until 2027 or later.
Hochul's announcement comes months after the Pentagon conditionally committed $500 million in long-term debt financing to Phoenix Tailings to build a rare earth midstream processing plant in the US.
Hochul said the facility will help bolster national security by "reducing reliance on foreign sources of critical minerals".
Source: Investing.com
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