Ucore, Sumitomo team up on rare earth supply chain development

Ucore Rare Metals (TSXV: UCU) has partnered with Japan’s Sumitomo Corp. in the development of a diversified rare earth supply chain across North America and allied markets.

Under an agreement signed last week, the companies will collaborate on sourcing rare earth feedstock for Ucore’s Louisiana strategic metals complex (SMC) and downstream offtake development for separated rare earth products.

This would combine Ucore’s developing RapidSX technology platform at its Louisiana rare earth refinery with Sumitomo’s global sourcing, logistics and market access capabilities as the parties work to support more diversified rare earth supply chains, the companies said in a joint statement.

Shares of Ucore Rare Metals surged as much as 10% on the news, giving the Canadian company a market capitalization of C$675.3 million ($483 million).

Rare earth distribution

As part of the framework, Sumitomo will serve as Ucore’s distribution partner for designated separated rare earth products sold to selected customer segments in Japan and other mutually agreed industrial applications.

Focus will be placed on selected middle and heavy rare earth elements critical to high-performance magnets and advanced materials applications primarily in Japan, while preserving feedstock for additional processing to serve the North American and allied markets, Ucore said.

In addition, the companies intend to formally cooperate as project partners in Ucore’s previously announced Global Partnership Initiative with the Canadian government.

Nova Scotia-based Ucore is currently advancing its rare earth processing platform in North America, including the development of its planned metals complex in Louisiana and continued commercial demonstration with the government of Canada.

The Louisiana complex, located at the England Airpark in Alexandria, broke ground in May 2025, and is expected to produce high-purity rare earth oxides from chemical concentrates obtained from multiple global feedstock sources.

In the long term, the company aims to incorporate its 100% controlled Bokan-Dotson Ridge heave rare earth project, located on the Prince of Wales Island in Southeast Alaska, into its supply chain strategy.