Aclara Resources CEO Ramón Barúa Costa detailed a $277 million investment to build the first rare earth processing plant in America during an exclusive interview on "The Claman Countdown" Monday.
"We are going to be breaking ground in the second half of next year," he said on the future plant in Louisiana.
Rare earth elements are critical for making everyday electronics, defense systems and more.
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The investment aims to help fight China’s grip on the rare earths market, where the country controls around 70% of the world’s rare earth mining and 90% of its processing. Meanwhile, the U.S. handles around only 12% of the rare earth elements.
As the Trump administration seeks to delay China’s aggressive export controls, Barúa Costa addressed what the controls target.
"When we see, for example, the restrictions that the Chinese imposed very recently, they didn't talk about a rare earth generically, but they were talking specifically about seven rare earths, which happen to be heavy rare earths," Barúa Costa told FOX Business anchor Liz Claman. "They’re much more scarce and difficult to obtain."
However, the same type of clay deposits that the Chinese draw rare earths from also appear in Chile and Brazil, the CEO added.
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"We're developing two of them. And they're going to be the feed that is going to come into Louisiana," Barúa Costa shared.
The materials expert also gave a bold prediction on just how much the Louisiana facility will help the U.S. diversify the rare earth supply chain outside China.
"We expect to be able to supply 75% of the heavy rare earths that are going to be required by the EV industry together, of course, with other applications like drones and wind turbines," he said.
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When Claman asked Barúa Costa if his potential "key" role in helping the world decouple from China is intimidating, he clarified he aims to be an "alternative" to China rather than fully replace its rare earths supply.
Barúa Costa also discussed what will set his supply apart from his competitor’s.
"I think that the difference of our product is going to be the emphasis on sustainability, both from an environmental and social standpoint, we're going to have a product that probably is not necessarily going to compete in price with China," he said.
Although President Donald Trump is expected to meet with Chinese President Xi Jinping on Thursday as part of his tour of Asia, China has not yet confirmed the two will meet.
