Ucore (UURAF) (UCU.VN) shares soared over 13% on Tuesday and continued the rally on Wednesday, July 16 after the company based out of Nova Scotia announced a major milestone in its U.S. expansion plans. 

In its press release, the Canadian firm confirmed it will begin producing rare earth elements at its new Louisiana facility in May 2026 – marking a significant step toward reshoring critical mineral processing.  

At its intraday peak, Ucore stock was up roughly 160% versus its year-to-date low set in early March.

Here’s What It Means for Ucore Stock

Ucore’s announcement signals real progress in its effort to build a domestic supply chain for rare earth metals, which are essential to defense systems, electric vehicles, and advanced electronics. 

The Louisiana facility will initially produce 3,000 tons of rare earths annually, scaling to 12,000 tons by 2027, according to the company’s press release on Wednesday. 

Its location within a foreign trade zone offers tariff advantages and global logistics flexibility, while Pentagon funding ($18.4 million) underscores the strategic importance of the project. 

With China tightening export controls, Ucore with its U.S.-based processing capability is positioned as a unique North American alternative. 

The Louisiana facility update could attract long-term contracts and increase institutional interest – potentially driving the share price up over time. 

Ucore Shares Are a Speculative Investment at Best

Despite today’s rally, investors should practice caution in buying Ucore shares as the company’s future hinges on successful execution of a multi-phase construction project that’s currently in early stages only. 

Additionally, investors should note that Ucore doesn’t get coverage from Wall Street analysts, which often suggests low liquidity and minimal institutional interest – both red flags for long-term investors.  

Therefore, it’s fair to conclude that Ucore Rare Metals is more of speculative bet for now than a fundamentally sound investment.