On October 31, 2025, Ucore Rare Metals Inc. announced a milestone that could reshape the North American rare earth landscape: conditional approval for up to $36.3 million in government funding to build a first-of-its-kind commercial processing facility in Kingston, Ontario. The announcement, covered by multiple sources including Newsfile Corp and Investing News, signals a pivotal step for both Canada’s critical minerals strategy and the continent’s efforts to reduce reliance on foreign—especially Chinese—sources for rare earth elements.
The funding comes from two arms of the Canadian government. Natural Resources Canada (NRCan), through its Global Partnerships Initiative (GPI) Program, is offering up to $26.3 million in non-repayable contributions, while the Federal Economic Development Agency for Southern Ontario (FedDev Ontario) is chipping in up to $10 million. The total, if all conditions are met, will support Ucore’s “Pathway to Samarium and Gadolinium Security” Project, which aims to scale up a commercial facility dedicated to refining the rare earth elements samarium and gadolinium.
Why does this matter? For starters, this facility will be the first in North America dedicated to producing samarium and gadolinium oxides, both of which are essential for manufacturing samarium-cobalt (SmCo) permanent magnets. These magnets are not just any hardware—they’re vital for next-generation defense systems, including advanced radar, sonar, and guidance systems. They also power compact, high-performance micro-motors, advanced medical imaging devices, and even nuclear reactors. In short, these are the building blocks of modern technology, and their supply is a matter of national security.
The urgency of this project is underscored by recent moves from China, which earlier in 2025 added samarium and gadolinium to its Export Control List. According to Newsfile Corp, these controls are part of a broader Chinese strategy to restrict the flow of rare earth materials for military applications, reflecting a global shift toward stricter regulation and resource nationalism. For North America, which has long relied on overseas suppliers for these critical elements, the stakes could hardly be higher.
“Canada is proud to support Ucore in advancing critical mineral development that aligns with our national priorities and international commitments,” said the Honourable Tim Hodgson, Minister of Energy and Natural Resources, in a statement cited by Newsfile Corp. He emphasized that the Critical Minerals Production Alliance is working to “deploy sovereign tools, mobilize investments and financing, and secure offtake arrangements to accelerate the development of secure, resilient critical minerals supply chains.” For Hodgson and his colleagues, minerals like samarium and gadolinium are not just economic resources—they are the foundation for clean energy, advanced manufacturing, and defense capabilities.
Pat Ryan, Chairman and CEO of Ucore, called the government’s support “a powerful endorsement of our strategy to target specific and critical supply chain vulnerabilities with precision.” He added, “It complements our Louisiana processing plans that will focus on heavy rare earth oxides also on China’s export restriction list. The heavies are vital to iron boron permanent magnets and samarium and gadolinium are essential for the high-temperature stability and SmCo magnet performance required in defense and medical applications. This support accelerates our path to becoming the first North American producer of these critical materials.”
Dr. Ahmad Hussein, Ucore’s Director of Government Relations, echoed this sentiment, describing the contributions as “the result of a shared vision between Ucore and the federal government for a secure and sovereign critical minerals ecosystem.” He noted that the GPI and FedDev programs are “precisely the type of strategic partnership needed to de-risk this foundational project,” enabling Ucore to create “a strategic asset that will serve both national and economic security interests for decades to come.”
Claude Guay, Parliamentary Secretary to the Minister of Energy and Natural Resources, highlighted the broader impact: “Canada’s support for Ucore reflects Canada’s commitment to responsible resource development and international collaboration. By advancing projects that align with the goals of the Critical Minerals Production Alliance, we are helping to build resilient supply chains, drive innovation, and bolster Canada’s position as a trusted global partner in the continued development of more clean energy and advanced manufacturing.”
The Honourable Evan Solomon, Minister of Artificial Intelligence and Digital Innovation and Minister responsible for FedDev Ontario, pointed to the regional and technological benefits: “Critical minerals power the technologies that define our digital and clean-energy future—from AI and advanced computing to electric vehicles and defence systems. This investment in Ucore will anchor these important activities in Kingston, Ontario, strengthening our local supply chains across southern Ontario and turning our natural advantage into strategic strength—building the trusted, technology-driven economy of the future.”
The facility itself will leverage Ucore’s proprietary RapidSX™ separation technology, which is already being commercialized at the company’s Louisiana Strategic Metals Complex. This advanced process is designed to efficiently separate and refine rare earth elements, potentially giving North America a technological edge in a field long dominated by overseas competitors.
Of course, all this government funding comes with strings attached. The contributions are conditional—they hinge on Ucore meeting all program conditions, passing due diligence, and successfully negotiating and executing a Contribution Agreement. There’s also the matter of commercial offtake agreements, which have yet to be finalized. While the project’s potential is clear, observers will be watching closely to see how these hurdles are cleared in the months ahead.
This isn’t Ucore’s first brush with government support. Earlier in 2025, the company received a US$18.4 million follow-on award from the U.S. Department of Defense, bringing total funding under its current Other Transaction (OT) Agreement to US$22.4 million. According to Investing News, this cross-border backing underscores the strategic importance of rare earths on both sides of the border—and the growing recognition that supply chain security is a shared challenge for allies.
For Canada, the project represents a direct response to supply chain vulnerabilities identified by the government. By focusing on samarium and gadolinium, Ucore aims to provide a secure, domestic source for industries where reliability isn’t just important—it’s non-negotiable. The hope is that this Kingston facility will serve as a template for future projects, helping North America reduce its dependence on foreign suppliers and strengthen its technological and industrial base.
Still, the road ahead is far from certain. As noted in Ucore’s own forward-looking statements, the company faces a range of risks—from the commercial viability of its RapidSX™ technology to the challenge of securing additional partners and financing. Market conditions, regulatory changes, and the emergence of alternative technologies could all impact the project’s trajectory. But with strong government backing and a clear strategic rationale, Ucore’s Kingston facility is poised to become a cornerstone of the continent’s critical minerals future.
As the world races to secure the raw materials that power its most advanced technologies, Canada’s latest move with Ucore signals a determination to lead, not follow. The coming months will reveal whether this bold step can deliver on its promise—and reshape the rare earth supply chain for a new era.