Expanded Pentagon program targets samarium and gadolinium separation.
Canadian rare earth processor Ucore Rare Metals will receive a further $4.6 million from the U.S. Department of Defense. The award adds to existing funding that supports, among other work, the development of Ucore’s rare earth refinery in Louisiana. Total funding under the agreement rises from $22.4 million to $27 million.
The additional funds will support an expansion of Ucore’s planned rare earth separation technology, with a focus on samarium and gadolinium. According to the company, it will first develop the necessary processes further at its facility in Kingston, Canada.
Gadolinium is an important material for medical technology. Its compounds are used as contrast agents in medical imaging, particularly MRI scans. The element is also utilized in nuclear reactors. Samarium is combined with cobalt to make permanent magnets that withstand heat far better than widely used neodymium-iron-boron magnets. This makes them suitable for demanding applications in certain military equipment.
China restricted exports of both rare earths in April 2025. Since then, Western producers such as Lynas and REAlloys have stepped up efforts to improve supply. Stricter procurement rules for the U.S. Department of Defense, taking effect on January 1, 2027, are also likely to add pressure: samarium-cobalt and neodymium-iron-boron magnets generally cannot be sourced from supply chains in which raw materials were mined, refined or separated in China, Russia, Iran or North Korea. Exceptions apply.
Photo: umai’s images, xella via Canva, montage rawmaterials.net
