A rare-earth facility to be built at the former Kodak Park is in line for $54.2 million in combined state and local government assistance.
Much of the package aiding Massachusetts-based Phoenix Tailings consists of tax credits and exemptions, rather than direct funding, according to the company. The total does not include investment to upgrade power infrastructure by RED-Rochester, which oversees park utilities. The railroad spur serving the 1600 Lexington Ave. facility also will require investment.
The forthcoming facility, announced last month, would cull the highly sought-after metals from mine waste and other industrial sources at an Eastman Business Park industrial warehouse complex in Greece.
Phoenix's capital outlay is estimated at $375 million, according to Gov. Kathy Hochul. But the company estimates its total costs, including needed chemicals and other operational expenses, at $600 million.
The combined public commitment, announced by Phoenix on Thursday, "underscores New York’s commitment to the project and bipartisan support for expanding U.S. production of critical materials," a company statement read.
Those rare earth metals are key in the production of electric vehicles, electronics, and defense equipment, but China currently controls most of the supply.
Local operations are scheduled to ramp up in 2027, with full production planned for 2028. The Eastman Business Park facility is projected to support 90 jobs at launch, and more than 200 when fully operational.
The award breaks down in general terms as follows:
- Up to $3 million in performance-based tax credits through Empire State Development’s Excelsior Jobs Program
- $15.9 million in New York State investment tax credits.
- $35.3 million in tax savings on eligible equipment and construction materials, including local tax breaks, along with anticipated funding for power infrastructure improvements serving the project.
The company anticipates additional support for equipment purchases and workforce training through county programs.
Phoenix's Greece facility is part of the company's larger $1.2 billion "Freedom Project" described as "an integrated separation-and-metallization platform designed to close a critical gap in U.S. midstream rare earth processing capacity.
The Trump administration has additionally committed more than $550 million combined to support the company.
“Building America’s rare earth supply chain is a national security imperative and bipartisan government priority,” Phoenix Chief Strategy Officer Pat Kumashiro said in a prepared statement. “We are excited to see federal, state, and local stakeholders collaborate to support domestic production of the critical materials America needs.”
The company statement described Freedom Separation as "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."
The project, the company said, "is designed to strengthen access to domestic processing for America and her allies while reducing reliance on foreign supply chains and advancing environmentally responsible production."
