Phoenix Tailings will invest $375 million to develop a commercial-scale rare earth processing facility in Rochester, New York, as the United States intensifies efforts to reduce its dependence on China for critical minerals.
New York Governor Kathy Hochul announced the project, which will be located at Eastman Business Park. The 500,000-square-foot facility is expected to begin some operations in 2027, with full production targeted for 2028.
The plant is designed to process approximately 18,000 tons of rare earth materials annually, strengthening domestic processing capacity for minerals used in electric vehicles, advanced manufacturing, defence systems and other strategic technologies.
New York State will provide $3 million in performance-based tax credits to support the development. According to Hochul, the investment will help establish a cleaner domestic supply chain for rare earth elements while reducing reliance on foreign sources of critical minerals.
The project forms part of a broader US effort to expand rare earth processing and secure supplies of materials essential to national security and advanced manufacturing. Although billions of dollars are being directed towards new facilities, much of the planned processing capacity is not expected to become operational until 2027 or later.
The announcement follows an earlier commitment by the Pentagon to provide Phoenix Tailings with up to $500 million in conditional long-term debt financing for the construction of a rare earth midstream processing plant in the United States.
Phoenix Tailings Chief Executive Nick Myers said securing control over rare earth supply chains was essential to supporting future industrial development in the United States and its allied countries.
The Rochester facility is expected to contribute to domestic rare earth processing capacity, supporting efforts to build a more resilient supply chain for critical minerals and reduce exposure to overseas supply disruptions.