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Securing America's Future: Ucore Rare Earth's Bokan Mountain Project as a Linchpin of Strategic Mineral Security

Albert FoxTuesday, May 13, 2025 7:33 pm ET

16min read

The United States’ race to secure its critical mineral supply chains has never been more urgent. With China controlling over 80% of global rare earth element (REE) processing, the Biden administration’s push to “de-risk” supply chains under the CHIPS Act and Defense Production Act (DPA) has created a once-in-a-generation opportunity for companies like Ucore Rare Metals (URE). Its Bokan Mountain Project in Alaska stands at the forefront of this transformation—a project that could redefine U.S. strategic autonomy in defense, clean energy, and high-tech manufacturing.

The Imperative of Strategic Mineral Security

Rare earth elements are the unsung heroes of modern technology: they power missile guidance systems, electric vehicle motors, wind turbines, and advanced semiconductors. Yet, the U.S. remains dangerously reliant on China for these materials, a vulnerability underscored by Beijing’s recent threats to weaponize its dominance in critical minerals.

Enter Ucore’s Bokan Mountain deposit, a 100%-owned heavy REE (HREE) resource located in the Tongass National Forest. Unlike light REEs, heavy REEs like dysprosium and terbium are indispensable for permanent magnets, which are essential for defense systems (e.g., missile guidance, drones) and next-gen EVs. Bokan’s 2,600-hour operational success of its RapidSX™ separation technology—a proprietary process funded by a $4 million U.S. Department of Defense (DoD) contract—proves its ability to produce high-purity HREEs at scale. This breakthrough positions Ucore to capitalize on the January 2027 DoD ban on Chinese REE imports, a mandate enshrined in the 2024 National Defense Authorization Act (NDAA).

Catalysts for Growth: Permits, Partnerships, and Policy Tailwinds

Recent milestones underscore Ucore’s progress toward becoming a strategic supplier to U.S. defense and tech industries:
1. Permitting Progress:
- The 2025 DPA invocation by the Trump administration accelerated Bokan’s timeline, leveraging exemptions to Alaska’s Roadless Rule to fast-track infrastructure.
- Ucore’s partnership with the Alaska Industrial Development and Export Authority (AIDEA) secures critical local support, while its $15M Louisiana Strategic Metals Complex (SMC) incentives ensure a domestic end-to-end supply chain.

DoD and Government Backing:
The DoD’s $2.3M disbursement (as of December 2024) reflects confidence in RapidSX’s scalability. Ucore’s alignment with the Critical Minerals Warp Speed (CMWS) initiative further cements its role in national security.
Canada’s $4.28M investment for light REE projects in Ontario signals cross-border collaboration, expanding Ucore’s reach into North American supply chains.
ESG Compliance as a Competitive Edge:
Ucore’s commitment to closed-loop water systems and underground cement-paste tailings storage addresses environmental concerns, mitigating risks to salmon habitats and Indigenous communities.
The cleanup of the adjacent Ross-Adams Superfund site (completed in 2025) removes legacy contamination, reinforcing its ESG credibility—a must for institutional investors.

The Investment Case: Undervalued Stock Ahead of Production Ramp-Up

Ucore’s stock remains grossly undervalued compared to its strategic importance and growth trajectory. With Bokan’s targeted 2025 production start and a $2M private equity infusion in early 2025, the company is poised to deliver on its 2,000 metric tons/year REE separation goal.

Why act now?
- Geopolitical Demand Surge: The 2027 DoD ban will force a scramble for domestic REE suppliers. Ucore’s early mover advantage in HREEs—critical for defense—positions it to command premium pricing.
- CHIPS Act Funding: Ucore’s alignment with federal incentives ensures steady capital flows, reducing execution risk.
- Technical Validation: RapidSX’s success in Kingston, Ontario, removes scalability doubts, a key hurdle for mining startups.

Risks, but Manageable

Permitting Delays: While Bokan’s 2025 environmental impact statement (EIS) is underway, opposition from environmental groups could delay timelines. However, the DPA’s national security carve-outs mitigate this risk.
Commodity Price Volatility: REE prices could dip if China floods markets. Yet, Ucore’s DoD contracts provide stable demand, insulating it from short-term swings.

Conclusion: A Strategic Investment for the Decade

Ucore Rare Earth is not just a mining play—it’s a strategic necessity for U.S. supply chain resilience. With geopolitical tensions, ESG scrutiny, and the 2027 DoD deadline converging, Bokan Mountain is uniquely positioned to satisfy defense and tech demand. Investors who act now can secure a seat at the table as Ucore transitions from a development-stage company to a cornerstone of America’s critical minerals independence.

Act before the ramp-up begins.

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