Aclara secures $5M US funding for brazilian rare earth project

Aclara Resources secures $5M funding from the US DFC to advance its Carina heavy rare earths project in Brazil, targeting production of dysprosium and terbium by 2028.

Aclara Resources (TSX: ARA) has received financial backing from the US International Development Finance Corporation (DFC) for its flagship Carina heavy rare earths project in Brazil, marking another step in Western efforts to diversify supply chains away from China’s dominance in critical minerals.

In a press release issued Tuesday, Aclara confirmed that the DFC has committed up to $5 million under its Project Development Program. The funds will support the project’s feasibility study, already underway with engineering firm Hatch Ltd., and expected to be completed in early 2026.

“We are deeply honored to have been selected by the US DFC as a recipient of the project development funds. This initial investment is not only a validation of Aclara’s strategy, but also an important first step toward a larger commitment from DFC once we complete the feasibility study for the Carina project,” said Aclara CEO Ramón Barúa.

Funding with Future Equity Potential

The DFC’s initial investment could later be converted into equity in Aclara if the company secures at least $50 million in a single financing round or $75 million through multiple financings within 12 months to advance Carina’s construction. The US agency would then also hold a preferential option to provide or arrange additional financing.

Following the announcement, Aclara shares surged to a one-month high of C$1.57, before settling at C$1.53, up 5.5% by mid-morning trading. The company’s market capitalization now stands at C$332.2 million ($233.6 million).

A Strategic Rare Earth Asset in the Americas

Located in Goiás, Brazil, Carina is one of two ionic clay deposits under development by Aclara, the other being the Penco project in Chile. Aclara is 57% owned by the Hochschild Group.

Carina is considered a strategic heavy rare earth asset with potential to reduce reliance on China, which currently supplies about 90% of the world’s rare earths. According to a preliminary economic assessment, the project could generate up to 191 tonnes of dysprosium (Dy) and terbium (Tb) annually—critical elements for electric vehicles, wind turbines, defense systems, and medical technologies. The report estimated a 22-year mine life, a net present value (NPV) of $1.5 billion at an 8% discount rate, and an internal rate of return (IRR) of 27%.

If developed as planned, Carina could produce around 13% of China’s current annual rare earth output, CEO Barúa told Reuters previously.

Road to Production in 2028

Aclara expects to complete its pre-feasibility study this month, with the feasibility study following in 2026. The project is supported by a total resource of 298 million tonnes grading 1,452 ppm TREO, equivalent to 432,000 tonnes of contained rare earth oxides in the inferred category.

Earlier this year, the company also launched a pilot plant to process ionic clay from Carina and produce dysprosium and terbium, seen as a critical step toward commercial production, targeted for 2028.

Aclara is also pursuing development of the Penco project in Chile, which contains 62,900 tonnes of rare earth oxides in the measured and indicated categories, and is expected to follow a similar production timeline.