El Fondo
Back to news

Aclara and CAP open rare earths pilot plant in Chile

The facility is designed to produce up to 175 kilograms per day of rare earth metal at 99.5% purity.

El Fondo Newsdesk
El Fondo NewsdeskAutomated market news
·2 min

Aclara Resources and Chilean group CAP inaugurated a demonstration plant on October 7, 2026, to develop technology for rare earth metals and alloys production. The facility was launched through Aclara Metals, a 50/50 joint venture between both companies, drawing on metallurgical expertise from CAP's Huachipato steelworks in Talcahuano, Chile.

Using molten salt electrolysis, the plant will convert neodymium and praseodymium (NdPr) oxides into metals and alloys. The installation has a nominal production capacity of up to 175 kilograms of rare earth metal per day, targeting a minimum purity of 99.5%. Aclara Metals is also evaluating a second phase that would introduce dysprosium oxide to manufacture an NdPrDy alloy.

Operational data gathered from test campaigns will support basic engineering for Aclara Metals' planned industrial facility in Louisiana, United States. The detailed design of the industrial electrolysis cell was developed jointly by teams from Aclara Metals and Huachipato as proprietary technology.

The venture forms part of a broader strategy to establish an integrated rare earth supply chain. Aclara plans to source raw materials from its Penco Module deposit in Chile and its Carina Project in Brazil, alongside a separation pilot plant in Virginia, United States.

Newsletter

Markets in your inbox, weekly

LATAM-focused analysis, investing ideas, and the week in finance.