Ucore Rare Metals (TSX.V: UCU) (OTCQX: UURAF) Poised for Growth as Rare Earth Demand, Prices Rise in Coming Year

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• Market forecasts and recent activity in the sector point to solid demand gains through 2026 and beyond.
• The individual rare earth oxides segment accounted for 50.1% in 2024 and is projected to grow at a CAGR of 7.7% through 2034, reports Research and Market.

Global demand for rare earth elements (“REEs”) is entering a new phase of sustained growth and tightening supply, driving both long-term demand forecasts and price momentum for critical magnetic materials. Companies that can build processing capacity are increasingly in the spotlight, including Ucore Rare Metals (TSX.V: UCU) (OTCQX: UURAF). Ucore is positioning itself within this evolving landscape by advancing its proprietary RapidSX(TM) separation technology and commercial processing plans in North America to help meet rising needs for REEs essential to clean energy, defense and advanced technology markets.

Market forecasts and recent activity in the sector point to solid demand gains through 2026 and beyond. The global rare earth metals market was valued at roughly $18.2 billion in 2024, and analysts estimate it could reach $36.7 billion in the decade ahead. This surge is driven by industrial demand for high-performance materials used in electric vehicles, wind turbines, defense systems and consumer electronics. 

Long-range forecasts project continued expansion, with sustained compound annual growth supporting an increasingly large and diverse market. These projections reflect broad global trends toward electrification and clean-energy deployment that have spurred industrial demand well beyond historical baselines. 

“The individual rare earth oxides segment accounted for 50.1% in 2024 and is projected to grow at a CAGR of 7.7% through 2034,” noted a recent Research and Markets report. “Demand for these individual rare earth metals is rising rapidly as their applications in advanced technologies continue to expand. Elements such as neodymium, praseodymium and dysprosium are experiencing particularly strong demand due to their critical role in high-performance permanent magnets used in electric vehicles, wind energy systems, and electronic devices.” 

Price trends reinforce the demand story. For example, market data shows that neodymium oxide benchmarks have climbed significantly in recent months and remain elevated compared with historical periods, reflecting tightening supply relative to demand growth. According to market pricing data, neodymium oxide contracts have strengthened year-over-year in early 2026, and models anticipate continued price support as supply constraints persist, with some estimates projecting prices in the six-figure range on a per-ton basis by late 2026. Elevated prices and volatility underscore the premium being placed on rare earth supply as manufacturers and policymakers alike seek to reduce overreliance on concentrated foreign sources. 

Part of this rising market dynamic is a renewed geopolitical focus on supply security. Recent news highlights continued Western efforts to reduce dependencies on China’s dominant processing position while building diversified supply chains. The United States recently enacted policies and funding initiatives aimed at strengthening domestic critical minerals capabilities, including significant investment commitments and tax incentives to support mine-to-magnet supply chains. European initiatives are similarly aimed at establishing regional processing capacity for rare earth magnets to reduce reliance on imported inputs. 

Ucore’s strategic positioning aligns with these macro trends. The company is developing commercial processing infrastructure for rare earth separation with a focus on deploying its RapidSX separation technology, a column-based solvent extraction innovation designed to provide efficient processing of both light and heavy rare earth elements. RapidSX differs from traditional solvent extraction by enabling higher throughput with reduced footprint and improved operational flexibility, creating a pathway for scalable deployment in commercial facilities. 

Ucore’s advancing activities include preparations to install commercial RapidSX units at its Strategic Metals Complex in Alexandria, Louisiana, with plans to commission the first commercial unit in mid-2026. The Louisiana facility is designed to process medium and heavy rare earth elements into separated oxides, a critical supply stage that currently lacks robust domestic capacity in North America. The company’s broader commercial strategy also includes technology transfer from its demonstration facility in Kingston, Ontario, which has provided extensive operational data supporting commercial scale-up. 

These developments are underpinned by government support. Ucore announced a funding agreement valued at $22.4 million with the U.S. Department of Defense to advance RapidSX separation technology toward full commercial production in Louisiana. According to the company, initial field work and engineering progress at the Louisiana site have advanced, and the project has received Defense Priorities and Allocations System status, which supports accelerated procurement and development. 

Ucore’s position in the evolving rare earth market is further supported by strategic alliances and projects that aim to integrate processing capacity across multiple jurisdictions. These include collaborations with magnet manufacturers and critical raw material suppliers designed to link oxide outputs with downstream magnet production needs, reinforcing the company’s role in an emerging North American supply chain that offsets traditional reliance on Asian processing hubs. 

The confluence of rising global demand, tightening supply fundamentals and heightened geopolitical focus on critical minerals suggests that rare earths will remain a high-growth area through 2026 and beyond. Price signals, volume forecasts and policy support all point to sustained pressure on the supply side, circumstances that favor companies capable of delivering refined, separated rare earth products at commercial scale. Ucore Rare Metals’ technology and development strategy positions it to take advantage of these market dynamics by addressing one of the most significant bottlenecks in the rare earth value chain: separation and processing capacity.

As demand for rare earth elements expands across energy transition, defense modernization and advanced manufacturing, the role of companies that can help build resilient, diversified supply chains becomes increasingly central. With momentum toward commercial deployment of RapidSX technology and government backing for U.S. processing facilities, Ucore is aligning itself with the structural forces shaping the future of rare earth markets. The anticipated uptick in demand and prices for these critical materials underscores the timing and importance of strategic capacity development, solidifying Ucore’s role in the long-term evolution of the global rare earth ecosystem.

For more information, visit www.Ucore.com.

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