ElementUSA has confirmed plans to invest USD 850 million in a rare earth and critical minerals refining project in Gramercy, Louisiana, advancing a strategy first outlined several years ago. The project is likely to generate 200 direct jobs on site. In addition, Louisiana Economic Development forecasts 554 jobs to emerge from the supporting industries and services.
Rather than relying on the newly mined materials, the operations in the facility will now focus on the recovery of high-value minerals from bauxite residue and alumina by-product, which is often treated as waste. ElementUSA intends to apply its proprietary processing methods to extract gallium, scandium, iron, and other critical materials from more than 30 million tonnes of residue available from nearby industrial operations.
Before starting with a commercial-scale production, the company will construct a demonstration facility to test and optimise its extraction process. The US Department of Defense has extended funding of USD 29.9 million, since the project is strategically important for strengthening domestic supply chains for crucial minerals. Data from the pilot plant will be further used to design a larger, permanent refinery in the future.
LED reports that the construction of the demonstration facility will begin in mid-2027, which is going to accommodate the initial production targeted for the third quarter of 2028.
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In the following years, the company plans to build a full-scale operation capable of processing more than one million tonnes of bauxite residue annually. Chief executive Ellis Sullivan said federal backing allows the company to move from development to execution, with the long-term aim of establishing a world-class processing hub in Louisiana that supports both industrial growth and national security.
To secure the investment, Louisiana offered an incentives package that includes workforce training support through LED FastStart, a USD 6 million performance-based grant for infrastructure improvements, and access to the Quality Jobs and Industrial Tax Exemption programmes.
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