# Aclara and CAP start rare earth alloy plant runs for US magnets *The Chilean facility tests molten salt metallurgy to supply 154 metric tons of ferro-dysprosium annually for electric vehicle drivetrains.* **Published:** October 10, 2026 **By:** Mina Okoro **Section:** Semiconductors & AI Hardware — Cross-border **Format:** Breaking **Confidence:** medium **Source:** https://eastasiabrief.com/semiconductors/aclara-cap-start-rare-earth-alloy-plant-runs-us-628 **Publisher:** East Asia Brief (https://eastasiabrief.com/) --- ## What to know - Aclara and CAP started trial runs at a 175-kg-per-day rare-earth alloy demo plant on Oct. 9, 2026 - The platform validates commercial engineering to produce 154 metric tons of ferro-dysprosium annually in Louisiana - Feasibility technical study and final project financing reviews are scheduled for the fourth quarter of 2026 ![A technician observes metallurgical equipment near a tray of metal ingots at a demonstration facility for rare-earth alloys. (AI-generated image)](https://eastasiabrief.com/media/2026-10-09-fa8d796eb49b.webp) *A technician observes metallurgical equipment near a tray of metal ingots at a demonstration facility for rare-earth alloys. (AI-generated image)* Aclara Resources and CAP S.A. initiated trial operations at their rare-earth alloys demonstration plant on Oct. 9, 2026, advancing non-Chinese metal supply chains for permanent magnets in the United States. The facility operates at a nominal capacity of up to 175 kilograms per day with a minimum purity of 99.5%. The output tests metallurgy for upstream ionic clay deposits that could yield 12% of world dysprosium and terbium supply. Operating through their 50-50 joint venture Aclara Metals SpA, the partners built the installation at the Huachipato steelworks in Talcahuano, Chile. The site repurposes industrial metallurgy infrastructure following the idling of traditional steel operations. The demonstration plant uses molten salt electrolysis to convert neodymium-praseodymium oxide into magnet-grade metals. Neodymium-praseodymium metal serves as the core magnetic constituent in electric vehicle drive motors and wind turbines. Aclara Metals plans to add dysprosium oxide during a second operational phase to formulate neodymium-praseodymium-dysprosium alloys. Dysprosium maintains magnetic strength at elevated temperatures found inside defense guidance systems and automotive powertrains. China refines more than 90% of global heavy rare earths, leaving Western industrial manufacturers vulnerable to unilateral export licencing controls. The Talcahuano facility addresses that bottleneck by proving commercial-scale conversion outside Asian processing hubs. Chilean steel and mining group CAP contributed industrial real estate and metallurgical engineering personnel. CAP owns 10% of Aclara Resources in addition to its half-stake in the processing joint venture. Aclara Resources supplies ionic clay resources from its Penco Module in Chile and Carina project in Brazil. Ionic clay deposits allow chemical desorption of heavy rare earths without the radiological tailings common in hard-rock mining. Data collected during continuous electrolysis runs will validate the design of commercial metal cells. The proprietary cell structure was engineered jointly by metallurgists from Aclara and Huachipato. The trial metrics will feed basic engineering for a commercial separation and metal alloy plant planned in Louisiana. That US site is designed to process feedstock into 2,681 metric tons of neodymium-iron-boron alloys each year. The commercial complex aims to produce 154 metric tons of ferro-dysprosium and 19 metric tons of metallic terbium annually. The heavy rare-earth volume would cover the thermal stabilizer demand for roughly 5 million electric vehicles. Engineers are coupling operating sensors to an artificial intelligence model developed with the US Department of Energy. The digital twin simulates chemical changes in molten salts to maximize electrical efficiency and reduce bath degradation. Aclara secured an environmental air permit for the Louisiana site in September 2026, clearing regulatory hurdles for Project Dynamo. The Louisiana facility holds certified industrial status with waterway access along the Gulf Intracoastal Waterway. Financial exposure is backstopped by a preliminary letter of interest from the Export-Import Bank of the United States. The agency indicated potential loan backing of up to $750 million with tenors extending to 15 years. Aclara completed front-end engineering design level two and targets completion of level three engineering in late 2026. Capital outlays for commercial metal conversion carry an after-tax net present value of $203 million. Western magnet makers currently source intermediate metallic ingots through Chinese smelting firms even when purchasing unrefined concentrates elsewhere. Aclara Metals seeks to bypass that channel by combining extraction, oxide separation and alloy casting. Automakers require audited provenance for heavy rare earths to qualify for clean vehicle subsidies under federal trade rules. Traceable alloys from South American clays bypass supply chains that mingle material from Myanmar. Aclara also signed a partnership with Japan Organization for Metals and Energy Security to explore heavy rare-earth clay targets in Brazil. The exploration alliance broadens long-term feedstock security for the joint metallurgical venture. The venture forms part of a wider effort among allied economies to rebuild specialized chemical reduction capacity. Commercial metallization requires high electrical power and strict atmospheric control to prevent metal oxidation during pouring. The companies have not confirmed whether full commercial groundbreaking on the Louisiana alloy facility commenced on Oct. 9, 2026, as construction remains linked to final engineering reviews. Aclara Metals expects to publish its definitive feasibility study technical report in the fourth quarter of 2026. That engineering document will lock commercial capital budgets and delivery timetables for US automotive customers. ## Impact map | Event | Korea | China | Japan | Global impact | | --- | --- | --- | --- | --- | | rare-earth metal demo plant commissioning | EV motor makers assess alternative non-Chinese dysprosium supply | state refiners face Western alloy alternative for high-heat magnets | JOGMEC deepens clay exploration ties with Aclara in Brazil | permanent magnet supply chain gains non-Chinese alloy conversion | ## In this story - **Companies:** Aclara Resources, CAP S.A. - **Tickers:** ARA.TO, CAP.SN - **Policy:** Economic Security, Subsidies - **Impact:** Supply Chain, Capex, Compliance ## Primary sources 1. chemanalyst.com 2. el-fondo.com 3. aclara-re.com 4. ppulegal.com 5. rareearthexchanges.com --- Cite as: East Asia Brief, "Aclara and CAP start rare earth alloy plant runs for US magnets," October 10, 2026. https://eastasiabrief.com/semiconductors/aclara-cap-start-rare-earth-alloy-plant-runs-us-628