RER demo plant poised for production

Rare Element Resources (RER) has the final confirmation needed from the U.S. Department of Energy (DOE) to begin operations at its demo plant in Upton.

The only thing left before the production phase can begin is an operations approval from the U.S. Nuclear Regulatory Commission (NRC).

Spokesperson Roger Connett confirmed a few weeks ago that the plant had passed th inspection, and the paperwork is anticipated “in the coming weeks”, according to a recent press release.

RER is still hoping to commence its year-long test of operations at the demo plant before the end of 2024, utilizing an estimated 20 full-time employees.

The intent remains to advance the company’s proprietary processing and separation technology and gather the “operational and economic data” needed to design a full-scale plant.

“We continue preparations for the commencement of plant operations,” said Ken Mushinski, President and CEO, in the press release.

“We have engaged Wood PLC, out of Gillette, Wyoming, as our operations staffing contractor which is preparing a staffing roster for operating the Demonstration Plant under RER’s supervision. Entering the operations phase moves us one step closer to proving our innovative rare earth recovery technology is ready for commercial applications.”

If testing proves successful, this final plant will be built across from the demo plant on a 500-acre plot. It will use identical components to the demo plant, except there will be a lot more of them.

The hope is that it will also form part of a whole complex of rare earth-related facilities, said Connett, such as one that builds magnetic motors.

Since RER began the process of constructing its demo plant, “post-pandemic supply chain issues and inflation, as well as necessary design refinements” have led to an increase in the projected cost.

The DOE has also approved a 10% cost-share increase from $21.8 million to around $24.2 million.

RER has stated that it anticipates the full project cost will exceed this budget, but that the company has advised the DOE it will use existing company funds to cover any extra costs.

The company is continuing to pursue other funding to cover these increases, states the press release.

“Although we have taken extraordinary measures to control costs during the design, construction and soon to commence operation phases, the fact is, our first-of-its-kind rare earth element separation plant project has gone from concept to reality during a recovering economy and associated supply chain issues that has resulted in both schedule and cost challenges. We are appreciative of the DOE’s recognition of the significance of our plant to the U.S. domestic supply chain, and its willingness to provide additional cost-share to assist in offsetting the project cost growth,” said Mushinski.