Phoenix Tailings to Open 5M Facility in Rochester

Phoenix Tailings to Open $375M Facility in Rochester

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Phoenix Tailings is set to build a $375 million rare earth separation facility at Eastman Business Park in Rochester, a move that signals a significant investment in America’s domestic supply chain for critical minerals, Governor Kathy Hochul announced on Oct. 20. The Massachusetts-based company will convert mined and recycled rare earth feedstocks into separated oxides, materials essential for electric vehicles, electronics, and defense equipment.

A Major Bet on American Manufacturing

This isn’t just another factory opening. The Rochester facility, dubbed “Freedom Separation,” is the centerpiece of the company’s larger $1.2 billion-plus “Freedom Project,” an integrated platform designed to close a critical gap in the U.S. midstream rare earth processing capacity. As the company noted in its own announcement, the site was selected after a nationwide search, chosen for its industrial infrastructure and Rochester’s skilled workforce in engineering and advanced manufacturing.

At full capacity, the Rochester operation is expected to be one of the largest of its kind in the world, processing over 18,000 tons of mixed rare earth feedstock annually to produce more than 4,400 tons of separated rare earth oxides. The timeline is aggressive: production is slated to ramp up in 2027, with full operational capacity targeted for 2028. The project will create 90 jobs at launch and more than 200 direct New York jobs once running, supporting a total of over 500 jobs across Phoenix’s facilities in New York, Massachusetts, New Hampshire, and a future location.

Eastman Business Park to host $375 million rare earth mineral separation facility

Public and Private Support for a Strategic Goal

The project has secured substantial backing from both federal and state governments. The company announced an estimated $54.2 million in combined state, local, and infrastructure incentives to help upgrade the building and create the necessary ecosystem for production. This builds on a $500 million conditional loan commitment from the Department of War’s Office of Strategic Capital secured under the Trump administration, creating a rare instance of bipartisan support for a critical manufacturing initiative.

“I’m proud to welcome Phoenix Tailings to the Rochester-Finger Lakes region. This new investment will bring rare earth mineral manufacturing operations, along with at least 90 new, good-paying jobs, to Eastman Business Park. This is critical for reducing our reliance on foreign processors and protecting our national security.”

That’s the view from U.S. Senator Chuck Schumer (D-N.Y.), a long-time champion of Eastman Business Park as a manufacturing hub. For Governor Hochul, the project represents a commitment to an innovation economy that also bolsters national security. “Phoenix Tailings will not only create at least 90 new jobs,” she stated, “but they will also play a critical role in bolstering our national security by building a supply chain for rare earth elements in New York.”

The CEO’s connection to the region adds a personal dimension to the project. “My grandfather, Nicholas Sfikas, started Rochester 100 Inc. just 15 minutes from the site,” said Nick Myers. “Growing up watching him build his amazing company, and having worked on the factory floor myself, I know firsthand the depth of talent and manufacturing expertise in Rochester.” This isn’t just about technology, he emphasized; it’s about people. “Technology can give America control over its critical supply chains, but it takes skilled, determined people to turn that promise into production.”

The Core Mission: Building Metal, Not Buildings

CEO Nick Myers was clear about the facility’s purpose. “Part of the incentive with the state and local community is to upgrade that building and make it more suitable for what we need to do,” he explained. “But we are not building buildings. We are building major metal production. 'That's the key thing.' This sharp focus on output shows the project's strategic importance. The United States currently imports the vast majority of its rare earth elements, processed almost exclusively by China, creating a significant vulnerability for its defense and technology sectors. By establishing a domestic separation facility, Phoenix Tailings aims to directly address that chokepoint.”

Phoenix Tailings to Open $375M Facility in Rochester
Photo: phoenixtailings.com

The economic and strategic stakes are high. The ability to process these materials domestically is not just an industrial goal; it’s a matter of national resilience. The metals produced here will go into everything from the magnets in electric motors to the components in guided missiles. The project’s success hinges on its ability to scale production efficiently and cost-effectively, a challenge that has thwarted previous attempts to build a U.S.-based rare earth industry.

The separation process can involve the use of harsh chemicals, and managing waste streams responsibly will be a critical part of the operation’s long-term viability. The company has not yet detailed its full environmental compliance strategy or the long-term costs associated with waste management.

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