Eastman Business Park mineral separation facility secures $54M, aims to strengthen American supply chains ...Middle East

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ROCHESTER, N.Y. — A rare earth mineral separation facility that’s coming to Eastman Business Park has secured about $54.2 million in state and local infrastructure incentives.

The support package for Phoenix Tailings’ Freedom Project includes up to $3 million in performance-based tax credits through Empire State Development’s Excelsior Jobs Program. It also includes about $15.9 million in separate New York State investment tax credits.

The remaining $35.3 million is made up of tax savings on eligible equipment and construction materials, along with anticipated funding for power infrastructure improvements serving the project. Additional county programs are expected to help with equipment purchases and workforce training.

“I think the funds themselves are used in primarily two ways. One is to make sure we can hire local labor and make it more economical to do so, and make sure we have the resources in place to do so,” said Nick Myers, CEO and co-founder of Phoenix Tailings. “There is also the infrastructure upgrades to make sure that Rochester has the ability to be able to work with a large scale processing in a safe and clean way, which is very, very important to us.”

Aiming to strengthen America’s separation abilities

Phoenix Tailings combines breakthrough chemistry, industrial hardware, and digital infrastructure to produce materials that power modern technology. The company is working to rebuild domestic separation, refining and metal production capabilities, strengthening America’s industrial base and securing critical supply chains.

“I want it to be the global center of all critical materials processing. This site, of course, is right now about half 1,000,000 square feet. We’re looking to expand that. We’re looking to do more in the local area. We really wanted to bring it to be an absolute headquarters of global thought around critical materials around these rare earths,” Myers said.

Phoenix Tailings is planning to make Rochester a global center for rare earth materials processing with its new Freedom Separation facility.

“We buy rock from all mining operations and recycling operations all around the world. We will ship those in, enrollment to Rochester, New York, as the center of global processing and we’ll take that product and we’ll split that with the underlying components in the product itself. So take the rock and break it down into the underlying individual products,” Myers said.

Production scheduled to ramp up next year

Freedom Separation is designed to process more than 18,000 tons of rare earth feedstock annually, producing more than 4,400 tons of separated rare earth oxides at full capacity for downstream production through Freedom Metallization. The system is intended to strengthen access to domestic processing for America and her allies while reducing reliance on foreign supply chains and advancing environmentally responsible production. The Rochester facility will support more than 200 direct New York jobs when fully operational, including 90 at launch. Production is scheduled to ramp in 2027, with full production planned for 2028. Rep. Joe Morelle spoke about how the center aims to make Rochester a national leader is separation technology.

“This is about making sure the next generation of American innovation is built right here in Rochester, by American workers,” Morelle said.

Myers said the company is not mining in Rochester, but instead is processing material into final products in a sustainable way.

“We’ll be bringing in contractors and local labor to help with the deployment of the equipment itself. Most of the equipment itself is chemical processing. The reason we chose the site is actually because of Kodak’s lush, rich history there. Kodak is one of the best chemical producers that ever existed in America. And so we’re leveraging the infrastructure and the work that they did in that ecosystem to be really successful,” Myers said.

Greater Rochester Enterprise President Matt Hurlbutt said, “We are pleased that Phoenix Tailings found the right site, infrastructure, and skilled workforce to support its rare earth separation facility in the Greater Rochester, NY region. GRE worked with Phoenix Tailings on every aspect of this project, from site selection and incentives to permitting and talent. We’ll continue to support the company’s leadership team as they expand their operations in the Greater Rochester, NY, region.”

Eastman Business Park mineral separation facility secures $54M, aims to strengthen American supply chains WHEC.com.

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