Highlights

• RER delays its demonstration plant operations to Q1 2026 after a comprehensive system review and equipment upgrades.
• The Upton, Wyoming, plant aims to produce 10 metric tons of neodymium/praseodymium oxide and demonstrate innovative rare earth separation technology.
• Company positions itself as a potential cornerstone of the U.S. rare earth supply chain, advocating for strategic domestic production independence.

Rare Element Resources Ltd. (opens in a new tab) (OTCQB: REEMF) has issued a progress update on its rare earth demonstration plant under construction in Upton, Wyoming, following a comprehensive system review and redesign. Originally expected to begin operations in 2025, the company now forecasts that commissioning and operations will commence in Q1 2026.

The plant, designed to test and refine RER’s proprietary separation and processing technology, is a key step in commercializing the Bear Lodge Project (opens in a new tab) in northeast Wyoming—one of the most significant U.S.-based deposits of critical rare earths. The demonstration facility will ultimately aim to produce up to 10 metric tons of separated neodymium/praseodymium (Nd/Pr) oxide over a 10-month operating window.

CEO Ken Mushinski (opens in a new tab) confirmed that during a recent plant-wide review, several areas requiring equipment upgrades and system rework were identified. Updated piping and instrumentation diagrams (P&IDs) are complete, and the sourcing of new construction materials and control system alignments is underway.

Mushinski emphasized RER’s commitment to safety, reliability, and strategic independence, stating: “Our innovative technology, combined with our world-class Bear Lodge deposit, can become a cornerstone of America’s rare earth needs at a time when the U.S. government recognizes China’s market dominance must be addressed.”

Notably, the company remains actively engaged with policymakers. Mushinski testified before the U.S. House Small Business Committee on June 24, advocating for greater federal support to accelerate domestic rare earth supply chains.

Key Open Questions for Investors

• Will ongoing inflation, equipment procurement, or permitting delays further shift the Q1 2026 target?
• How will operational performance data from this pilot plant translate to cost-competitive, commercial-scale economics?
• Can RER secure long-term offtake partners for its Nd/Pr oxide, particularly within the defense or EV supply chains?

Retail investors should closely monitor confirmed timelines, data from plant shakedown activities later in 2025, and progress on downstream partnerships that could help de-risk scale-up efforts.

Rare Element Resources continues to position itself as one of the few publicly traded U.S. rare earth companies advancing toward production of magnet-grade oxides. The success of its demonstration plant could provide a critical blueprint for domestic rare earth independence.