US rare earths refiner Phoenix Tailings’ $1.2-billion Freedom project is set to receive an estimated $54.2-million in state, local and infrastructure incentives to advance its rare earth separation facility at the Eastman Business Park, in New York.

The project entails the establishment of an integrated separation and metallisation platform designed to close a critical gap in US midstream rare earth processing capacity.

The support package combines state and local tax incentives with anticipated infrastructure funding.

It includes up to $3-million in performance-based tax credits through Empire State Development’s Excelsior Jobs Programme and about $15.9-million in separate New York state investment tax credits.

The remaining incentives – about $35.3-million – comprise tax savings on eligible equipment and construction materials, along with anticipated funding for power infrastructure improvements serving the project.

Additional county programmes are expected to support equipment purchases and workforce training.

Subject to applicable eligibility and performance requirements, approvals and final award terms, this support is expected to lower project costs and allow Phoenix to direct more capital toward process equipment, production capacity and hiring local labour.

The award is said to underscore New York’s commitment to the project and bipartisan support for expanding US production of critical materials.

Leveraging existing industrial buildings and chemical-processing infrastructure from Kodak’s manufacturing legacy, Phoenix will focus its capital and team on installing equipment, bringing production online and accelerating the supply of materials for US rare earth production.

“We do not celebrate progress by announcing we have built a floor or a wall. Success is producing the rare earth metals and oxides that power America and our allies.

“Support from the town of Greece, Greater Rochester Enterprise and New York state helps us upgrade the existing buildings and infrastructure at Eastman Business Park to bring production online faster for America,” says Phoenix Tailings CEO and co-founder Nick Myers.

“Under Governor [Kathy] Hochul’s leadership, New York state continues to partner with innovative, dynamic companies that want to invest, grow and create jobs.

“Phoenix Tailings’ commitment means that new high-tech jobs and advanced technologies will be coming to Eastman Business Park, supporting regional economic growth in the Finger Lakes and demonstrating the success of our strategic efforts,” says Empire State Development CEO, president and commissioner Hope Knight.

Freedom Separation is designed to process over 18 000 t/y of rare earth feedstock, producing more than 4 400 t of separated rare earth oxides at full capacity for downstream production through Freedom Metallisation.

The Rochester facility is expected to support over 200 direct New York jobs when fully operational, including 90 at launch. Production is scheduled to ramp up in 2027, with full production planned for 2028.

Phoenix Tailings previously secured a $500-million conditional loan commitment for the Freedom project from the US Department of War’s Office of Strategic Capital.