Phoenix Tailings announced it will build a $375-million commercial-scale rare earths processing facility in Rochester, New York, as the US looks to loosen China’s grip on minerals.
The plant, called Freedom Separation, will process more than 18,000 tons of both mined and recycled rare earth feedstock annually, producing over 4,400 tons per year of separated rare earth oxides at its full capacity. Production is expected to ramp up in 2027 before reaching full capacity in 2028.
“Technology can give America control over its critical supply chains, but it takes skilled, determined people to turn that promise into production,” Phoenix Tailings CEO and co-founder Nick Myers said in a statement. “Rochester has those people. They know how to build, how to innovate, and how to run world-class industrial operations.”
Phoenix Tailings selected Eastman Business Park in the city of Rochester for the 500,000-square-foot facility, citing its existing industrial infrastructure and local expertise in engineering, manufacturing, chemical processing and operations.
The project is expected to support more than 200 direct jobs in New York when fully operational, with at least 90 when it launches.
New York governor Kathy Hochul said the state will provide $3 million in performance-based tax credits for the project, Reuters reported.
“I am committed to supporting innovative projects and companies that are ready to invest in New York and bring good-paying jobs,” Hochul said. “Phoenix Tailings will not only create at least 90 new jobs at Eastman Business Park, further supporting our state’s innovation economy, but they will also play a critical role in bolstering our national security by building a supply chain for rare earth elements in New York.”
Federal backing
The Rochester facility forms part of Phoenix Tailings’ $1.2 billion Freedom project, a separation and metallization platform designed to close the gap in US midstream rare earth processing capacity.
The broader initiative is slated to generate more than 500 jobs across New York, Massachusetts and New Hampshire.
The Freedom Project has secured a $500-million conditional loan commitment from the Department of War’s Office of Strategic Capital under President Donald Trump’s administration. Phoenix’s new facility is also backed by democratic NY state governor Kathy Hochul and US Senator Chuck Schumer.
“This is critical for reducing our reliance on foreign processors and protecting our national security,” Senator Schumer said. “I’ve long championed Eastman Business Park as a hub for manufacturing and am glad that new companies are recognizing what I have long known: Upstate New York is a prime destination for new manufacturing investments.”
(With files from Reuters)