Phoenix Tailings plans to build a commercial-scale rare earth processing complex in Rochester, New York, in a project valued at $375 million, Governor Kathy Hochul announced on Oct 20. The company will locate the 500,000-square-foot facility within Rochester's Eastman Business Park, with a phased start to operations and a targeted timeline to reach full production in 2028.
According to the governor's statement, the site is expected to process roughly 18,000 tons of rare earth material per year once at capacity. Some operations are scheduled to begin next year, and the state has approved $3 million in performance-based tax credits to support the project.
The announcement comes as the United States increases investment in domestic rare earth processing. Officials say billions are being committed to new plants nationwide to reduce dependence on foreign sources of the minerals that are critical inputs in technologies ranging from electric vehicles to military aircraft. Industry officials note that much of the new processing capacity is not expected to be operational until 2027 or later.
The Pentagon has also signaled support for Phoenix Tailings. Earlier this year the Department of Defense conditionally committed $500 million in long-term debt financing to the company for a midstream rare earth processing plant in the United States. Phoenix Tailings' chief executive, Nick Myers, framed the effort in security terms, saying, "America and its allies cannot build the next generation of advanced manufacturing on a rare earth supply chain they do not control."
State officials emphasized the project's contribution to building a domestic supply chain for critical minerals. The governor's statement said the new facility will bolster "our national security by building a clean supply chain for rare earth elements in New York, reducing reliance on foreign sources of critical minerals".
While the project targets significant annual processing capacity and a multi-year buildout timeline, the path to full output will be staged, with partial operations slated to start before the site reaches its full throughput by 2028. New York's $3 million in tax credits are structured as performance-based incentives tied to the project's execution.
This development represents a focused effort to expand midstream rare earth processing capacity in the United States at a time when public and private funding are being directed at reducing overseas dependence for materials used across a range of technologies.