Summary:Aclara Resources and CAP S.A. have officially inaugurated a new rare earth metals demonstration plant in Chile, operated by their 50/50 joint venture Aclara Metals SpA. Located at CAP’s Huachipato steelworks in Talcahuano within Biobío Region, this facility marks a critical milestone to build a fu...

Aclara Resources and CAP S.A. have officially inaugurated a new rare earth metals demonstration plant in Chile, operated by their 50/50 joint venture Aclara Metals SpA. Located at CAP’s Huachipato steelworks in Talcahuano within Biobío Region, this facility marks a critical milestone to build a fully integrated American rare earth supply chain, from ionic clay ore to finished rare earth alloys for magnets and clean energy applications.

The demonstration plant leverages decades of CAP’s metallurgical expertise at Huachipato. It adopts molten salt electrolysis to convert neodymium and praseodymium oxides directly into rare earth metal and alloy products. The plant’s nominal capacity reaches up to 175 kg of rare earth metal per day, targeting minimum purity of 99.5%. Phase one focuses on Nd-Pr metal production, while a potential second phase will introduce dysprosium oxide to manufacture Nd-Pr-Dy alloy, which is widely used in high-temperature permanent magnets for EV motors and wind turbines.

This metallisation plant is a complementary piece to Aclara’s broader rare earth project portfolio. Aclara’s Penco Module in Chile is the country’s first rare earth ionic clay deposit. Together with the Carina Project in Brazil, these two deposits can deliver substantial heavy rare earth volumes. Aclara also runs separation pilot facilities in the US in partnership with Virginia Tech, forming a complete pipeline from ore concentration, rare earth separation, to metal alloy manufacturingAclara.

Many Western critical mineral projects stop at producing rare earth oxides. The capability to turn oxides into high-purity rare earth metals and alloys is a major bottleneck for non-Chinese supply chains. This Chile demonstration plant will run continuous test campaigns to verify product quality, operational stability, and process economics. The test data will guide the design of future commercial-scale metallisation plants and support qualification with global magnet manufacturers and EV OEMs.

The inauguration ceremony was attended by Biobío regional governor and senior executives from Aclara, CAP and Aclara Metals. CAP’s management highlighted the ability to transfer steelmaking metallurgical know-how into the rare earth sector, creating new industrial value in southern Chile. Aclara’s chief R&D officer noted that the demonstration plant fills the metallisation gap in its end-to-end rare earth value chain, supporting mine-to-magnet strategy across the Americas.

[IMAGE POSITION 3：Map of project location, Talcahuano Chile, mark Huachipato steelworks site, simple industrial map, 16:9, no logo, ALT text: Map showing Aclara CAP rare earth demonstration plant location Talcahuano Chile]

For global mining and critical mineral investors, this Chile plant sends a clear signal: regional rare earth supply chains are moving beyond exploration and ore concentration, into downstream metallurgy. If the demonstration runs smoothly, Aclara and CAP will have a proven route to produce finished rare earth alloys locally in South America, cutting reliance on overseas metal refining capacity.

The Aclara and CAP rare earth metals demonstration plant in Chile is a landmark step for the Americas’ critical minerals sector. By proving molten salt electrolysis for high-purity rare earth alloy production, the joint venture de-risks downstream metallisation and advances a regional integrated rare earth supply chain. Ongoing operational trials at the Huachipato site will deliver key technical and commercial data to support the next phase of scale-up for rare earth metals production.