Colorado School of Mines and ElementUSA awarded $67M by DOE for construction of rare earth processing plant
GOLDEN, Colo. and CEDAR PARK, Texas, June 02, 2026 (GLOBE NEWSWIRE) -- Colorado School of Mines and ElementUSA have been awarded $67 million in funding from the U.S. Department of Energy to build a plant for the extraction and processing of rare earth elements from alumina tailings in Louisiana.
The project in Gramercy, Louisiana is one of two announced today by DOE’s Office of Critical Minerals and Energy Innovation to design, construct, commission and operate a rare earth element (REE) facility capable of separating REE from mine tailings or other waste and refining the resulting oxides into rare earth metals. Rare earth elements, a group of 17 elements prized for their magnetic, optical and electrochemical properties, are essential to energy systems, defense, electronics, transportation, healthcare and more.
“Today’s active mines and processing facilities are optimized to produce just a few commonly used metals, with valuable critical minerals discarded as waste or stored in tailings facilities that require long-term environmental management. Recovering critical minerals from these untapped wastes is a key strategy for domestic mineral security and environmental stewardship,” said Elizabeth Holley, professor of mining engineering at Colorado School of Mines and principal investigator on the project. “Colorado School of Mines has been a leader in waste-to-value research and workforce development for decades. With support from DOE and in collaboration with ElementUSA, Mines research is changing the world, transforming waste into the minerals that we need.”
“We are honored to receive the Department of Energy's support and to partner with Colorado School of Mines on this important initiative," said Ellis Sullivan, Chief Executive Officer of ElementUSA. "This project represents a significant step toward unlocking a new domestic source of critical minerals essential to advanced manufacturing, semiconductors, energy systems and national security. By combining Colorado School of Mines' world-class expertise with ElementUSA's commercial development platform, we are advancing a practical pathway to recover strategic materials from bauxite residue at scale, strengthening America's critical mineral supply chains while creating long-term value from an underutilized domestic resource."
Founded in 2021, ElementUSA specializes in waste-to-market solutions and innovative midstream processing infrastructure to recover minerals from both primary and secondary sources. The company holds exclusive rights to the bauxite residue (alumina tailings) at the Atalco alumina refinery in Gramercy, Louisiana. Located on the banks of the Mississippi River, the alumina tailings impoundments contain 30+ million tons of “red mud”– residual materials from the alumina refining process that include rare earth elements and other critical minerals.
The funding from DOE will support the development of a plant operated by ElementUSA capable of supplying 150 to 1,000 metric tons per year of REEs for domestic use from the Gramercy tailings. Target elements include dysprosium, terbium, yttrium, gadolinium, neodymium, praseodymium, samarium and lanthanum.
ElementUSA is also currently developing a demonstration plant in Gramercy for the extraction of two other critical minerals, gallium and scandium, with U.S. Department of War funding.
Colorado School of Mines — recognized as a national leader in mining and minerals, including recovering critical minerals as by-products from active mines and wastes — will lead the project through the Mines Waste to Value Center. The center will leverage Mines’ expertise across the mineral value chain to optimize, de-risk and validate all stages of the project.
Led by Elizabeth Holley, the Colorado School of Mines Waste to Value Center unites an interdisciplinary team to advance the recovery of critical minerals from mine waste, from site selection to implementation. This work is aimed at strengthening domestic mineral supply chains while addressing challenges including waste characterization and recovery processes as well as the environmental, economic and societal dimensions of production.
“The goal of the Mines Waste to Value Center is a 10 percent reduction in mine waste and a 10 percent reduction in critical mineral imports in 10 years,” Holley said. “Projects such as this DOE-funded partnership with ElementUSA show how Mines is already leading the way.”
Join Mines in transforming waste into value by partnering on research and workforce development through our Waste to Value Center at mines.edu/waste-to-value.
About Colorado School of Mines
Colorado School of Mines is a public R1 research university focused on applied science and engineering, producing the talent, knowledge and innovations to serve industry and benefit society – all to create a more prosperous future. Based in Golden, Colorado, Mines is home to the world’s top mining and mineral engineering program and the only U.S.-based minerals and energy economics program. Mines’ expertise contributes to a rapidly growing critical minerals innovation ecosystem in Golden that includes the National Laboratory of the Rockies, a DOE Critical Minerals and Energy Innovation lab; the U.S. Geological Survey’s Energy and Minerals Research Facility, opening on the Mines campus in 2027; and a strong network of industry partners. Learn more at mines.edu.
About ElementUSA
ElementUSA Inc. is accelerating America’s access to critical minerals by unlocking overlooked domestic resources and delivering the processing strength to supply industry and defense. The company develops innovative midstream processing infrastructure to recover minerals from both primary and secondary sources, addressing the rising demand from U.S. manufacturers in sectors like semiconductors, national defense, and energy infrastructure. ElementUSA is pioneering Waste2Market solutions that offer faster and more sustainable pathways than traditional mining. At the center of this effort is the Critical Resource Accelerator (CRA), a premier research and development hub focused on scalable mineral recovery processes. For more information about ElementUSA’s initiatives and its commitment to advancing the future of critical minerals in America, please visit elementusaminerals.com.
MEDIA CONTACTS Colorado School of Mines: Erich Kirshner, Media Relations Specialist, erich.kirshner@mines.edu ElementUSA: Dan Byrne, Chief Investment Officer, dan.byrne@element.us.com
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