Lucid Capital Markets initiated coverage of Ucore Rare Metals (OTC: UURAF) on Tuesday, assigning a Buy rating and a $12.00 price target. At the time of the action, the stock was trading at $6.80, which the research firm notes implies an approximate 76% upside to the assigned target price.
In its research note, Lucid highlighted Ucore’s patent-pending RapidSX separation platform as central to the company’s thesis. The firm argues the technology could address a key bottleneck in efforts to establish an independent North American rare earth supply chain. Lucid pointed to the concentration of global production as a structural challenge: approximately 70% of rare earth element mine production is controlled by China, and that country exerts an even larger share of global refining and separation capacity, estimated at 85-90%.
Ucore has demonstrated separation capability at a pilot facility in Kingston, Ontario, where the company reportedly separated both light and heavy rare earth elements. Building on that pilot performance, Ucore is advancing a commercial-scale facility in Alexandria, Louisiana. Lucid’s note states the Alexandria plant is expected to begin generating revenue before the end of the year.
The research firm emphasized the strategic importance of the RapidSX platform for North American mineral security and noted that Ucore has secured substantial funding from authorities in Washington, Ottawa, and Baton Rouge. Lucid reiterated that because China holds near-complete control of heavy rare earth separation, expansion of refining and separation capacity in North America constitutes the most significant challenge to creating an independent supply chain.
The analyst initiation also referenced broader market sentiment data, citing an InvestingPro consensus recommendation score of 1.33, which corresponds to a Strong Buy rating by that dataset.
Context for infrastructure and industrial stakeholders - From an infrastructure and industrial perspective, Lucid’s report frames Ucore as targeting a processing-stage deficiency rather than upstream mining capacity. The company’s move from pilot to commercial scale and its access to public funding are focal points for evaluating project delivery and near-term revenue potential.