Phoenix Tailings has announced plans to establish a $375m commercial-scale rare earth separation facility at the Eastman Business Park in Rochester, New York (NY), US.
The new 500,000ft² facility, Freedom Separation, forms part of Phoenix Tailings’ Freedom Project, a platform valued at more than $1.2bn that aims to address a significant shortfall in US midstream rare earth processing.
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The Eastman Business Park was chosen following a national review due to its industrial infrastructure and the availability of a local workforce with expertise in engineering, advanced manufacturing, chemical processing and plant operations.
The Freedom Separation facility will process more than 18,000 tonnes per annum (tpa) of mined and recycled rare earth materials, with output expected to exceed 4,400tpa of separated rare earth oxides.
The site aims to begin limited operations in 2027, reaching full production capacity by 2028.
The operation is expected to generate more than 200 direct jobs in New York once fully operational, including at least 90 at its launch.
Across its broader platform in New York, Massachusetts, New Hampshire and a planned future site, the company anticipates supporting more than 500 jobs.
To support the expansion, Phoenix Tailings has received up to $3m in performance-based tax credits from New York State through the Excelsior Jobs Tax Credit Program, as well as additional statutory, local and infrastructure incentives.
The project is also receiving backing from Greater Rochester Enterprise.
Phoenix Tailings co-founder and CEO Nick Myers said: “Phoenix Tailings is building an innovative, commercial-scale alternative designed to secure the Western supply chain for the rare earth metals that power modern industry – while setting a new standard for responsible production, with zero waste, zero direct process emissions and a safer process for the people who operate it.”
In June 2026, the Freedom Project secured a conditional commitment for a $500m long-term loan from the US Department of War’s Office of Strategic Capital.
This commitment remains subject to the completion of further reviews before being finalised.
Currently, most rare earth separation takes place in China.
Phoenix Tailings plans to use its technology to process a range of industrial sources and mining waste, contributing to a domestic US supply chain for materials critical to electric vehicles, electronics, defence equipment and advanced manufacturing.
