Rare Element Resources (RER) has received approval from the US Department of Energy (DOE) to proceed with the construction of its rare earth processing and separation demonstration facility.

The project continuation notice from the DOE’s Office of Energy Efficiency and Renewable Energy follows the approval of the project's budget and the completion of the National Environmental Policy Act review.

The construction of the demonstration plant in Upton, Wyoming, is a significant step for RER, as it aims to advance its proprietary processing and separation technology.

Furthermore, the plant will provide valuable operational and economic data that will be crucial in designing a commercial-scale facility.

The company anticipates the plant to begin operations in the third quarter (Q3) of next year. Construction on the plant will take seven to ten months.

RER president and CEO Brent Berg said: “In anticipation of DOE budget approval, we have been working alongside our General Atomics-led project team and our contractor to prepare the site for construction.

“Now renovations can begin in earnest. To expedite the timeframe to production, the team will be installing equipment that is already being assembled off site on skids.

“Entering the active construction phase moves us one step closer to bringing our innovative rare earth recovery technology, with its inherent environmental and economic advantages, to commercial production.”