Boosting Domestic Supply Chains in Monroe County
Governor Kathy Hochul today announced that Phoenix Tailings, a Massachusetts-based company, has chosen Eastman Business Park in Monroe County for a new $375 million commercial scale, environmentally friendly, rare earth mineral separation facility. The 500,000-square-foot site will process rare earth materials used in products such as electric vehicles, electronics and defense equipment. Most rare earth separation currently takes place in China.
“I am fully committed to supporting innovative projects and companies that are ready to invest in New York and bring in good-paying jobs,” Governor Hochul said. “Phoenix Tailings will not only create at least 90 new jobs at Eastman Business Park further supporting our state’s innovation economy, but they will also play a critical role in bolstering our national security by building a clean supply chain for rare earth elements in New York, reducing reliance on foreign sources of critical minerals.”
Phoenix Tailings has developed cutting edge, environmentally friendly processes to recover rare earth metals from mining waste and other industrial sources. The company separates and processes these materials into metals used to make powerful magnets enabling technology to become faster, smaller, stronger and more energy efficient. These metals are also critical components in high-tech defense equipment, medical and healthcare products, advanced manufacturing, smartphones, laptops, electric vehicles and communications systems.
Rare earth minerals are in high demand because of their use in many everyday products and advanced technologies. China currently processes about 90 percent of the world’s rare earth minerals. Phoenix Tailings is proving that mining waste across the country can provide a crucial domestic source of these highly valued materials, reducing the United States’ dependence on foreign supply chains and environmentally unfriendly foreign production.
When fully operational, the Rochester facility is expected to separate about 18,000 tons of rare earth material each year, enough to produce about 3,000 tons of rare earth metals at the company’s downstream metallization facilities.
Phoenix Tailings Co-Founder and Chief Executive Officer Nick Myers said, “America and its allies cannot build the next generation of advanced manufacturing on a rare earth supply chain they do not control. Phoenix Tailings is building an innovative, commercial-scale alternative designed to secure the Western supply chain for the rare earth metals that power modern industry — while setting a new standard for responsible production, with zero waste, zero direct process emissions and a safer process for the people who operate it. We are thankful to Governor Hochul and all of our economic development partners for their assistance in making this project happen.”
New York State, through Empire State Development, is offering Phoenix Tailings up to $3 million in performance-based tax credits through the Excelsior Jobs Tax Credit Program. The company has committed to creating at least 90 jobs. In addition, the project is expected to benefit from broader statutory, local and infrastructure benefits. Greater Rochester Enterprise is also assisting with the project.
The Rochester facility is expected to eventually support more than 200 direct jobs in New York. Phoenix Tailings plans to begin some operations at Eastman Business Park in 2027, with full production expected in 2028.
Phoenix Tailings says its separation and metal-making operations are expected to support more than 500 jobs across New York, Massachusetts, New Hampshire and a future site. All told, the company expects to invest $1.2 billion across its U.S. operations.
The U.S. Department of War’s Office of Strategic Capital has made a conditional commitment of $500 million in long-term loans to help Phoenix Tailings build its rare earth mineral separation system. The commitment was announced in June and is still subject to review before the financing is finalized.
The U.S. Department of Energy has also awarded the company a $66 million grant. The grant is part of a $147.8 million project to demonstrate how heavy rare earth metals can be produced in the United States from waste materials.
U.S. Senator Chuck Schumer said, “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. I’ve long championed Eastman Business Park as a hub for manufacturing and am glad that new companies are recognizing what I have long known: Upstate New York is a prime destination for new manufacturing investments. I am grateful for Governor Hochul’s partnership welcoming new investments to the state.”
U.S. Senator Kirstin Gillibrand said, “When New York State invests in trailblazing industrial projects such as this new Phoenix Tailings facility, it is imperative that the surrounding communities be able to reap the rewards. With millions in federal investment, this facility will be more than just a new building — it will create jobs for hard-working New Yorkers, contribute to a culture of environmental consciousness, and revolutionize our national security supply chains.”
Representative Joe Morelle said, “America's dependence on foreign countries for the critical minerals and rare earths that power our economy and our national defense is a vulnerability we cannot afford. Phoenix Tailings’ $375 million investment will put our region to work rebuilding America’s critical mineral supply chain, transforming waste into the materials that enable everything from wind turbines to advanced fighter jets. This is about making sure the next generation of American innovation is built right here in Rochester, by American workers. I’m proud to welcome Phoenix Tailings to Rochester, and I thank Governor Hochul and our local partners for helping make this investment possible.”
The reinvigorated Eastman Business Park, where Kodak began making photographic film and paper more than a century ago, is a priority for the Finger Lakes Regional Economic Development Council. Today, Eastman Business Park hosts more than 100 companies that collectively employ over 6,000 people.
Empire State Development President, CEO and Commissioner Hope Knight said, “Under Governor Hochul’s leadership, New York State continues to partner with innovative, dynamic companies that want to invest, grow and create jobs. Phoenix Tailings’ commitment means that new high-tech jobs and advanced technologies will be coming to Eastman Business Park, supporting regional economic growth in the Finger Lakes and demonstrating the success of our strategic efforts.”
State Senator Jeremy Cooney said, “I’m pleased to see this investment in Monroe County, bringing high-quality jobs to the region, stimulating economic growth, and strengthening local supply chains. These kinds of projects are exactly what our community needs, and I’m proud to see Eastman Business Park continue to attract innovative companies and new opportunities. Thank you to Governor Hochul for continuing to support innovation and opportunity across Greater Rochester.”
Assemblymember Sarah Clark said, “Eastman Business Park has an incredible history of supporting innovation and good jobs in Rochester, and today's announcement from Phoenix Tailings shows how that legacy can continue to grow. Rochester has long been a leader in manufacturing, finding new uses for existing materials and building a stronger circular economy. This project for a rare earth mineral separation facility using industrial waste streams will build on Rochester's tradition of creating cutting edge jobs, attracting new investment, and demonstrating how innovation can continue to drive our city forward. I am grateful for everyone who has worked to make this project a reality and look forward to seeing the economic impact that it has on our community.”
Monroe County Executive Adam Bello said, “We are proud to welcome Phoenix Tailings to Monroe County and thrilled that they have chosen Eastman Business Park for this significant investment in our community. Their innovative technology is transforming industrial waste into critical materials that power everything from electric vehicles to advanced manufacturing, strengthening American supply chains and creating new opportunities for economic growth. With a $375 million investment and the promise of hundreds of new jobs, Phoenix Tailings is helping build the next generation of advanced manufacturing right here in Monroe County. Thank you to Governor Kathy Hochul for her leadership and unwavering support for our community, and for her continued commitment to bringing good-paying jobs and new opportunities to our region.”
Greece Town Supervisor Jeff McCann said, “Just as Kodak Park was an integral part of Greece's growth and development, so too is Eastman Business Park's success tied to Greece's future. The addition of Phoenix Tailings and its 90 new jobs will not only help Greece's economy, it will cement Eastman Business Park's role as a hub for advanced manufacturing in our region. We are grateful to Governor Hochul and Commissioner Knight for supporting the upstate economy by bringing this major project to our community.”
City of Rochester Mayor Malik D. Evans said, “I want to welcome Phoenix Tailings to the Rochester community and thank them for making this tremendous investment in our region, which will strengthen our position as an advanced manufacturing hub and create good-paying jobs for our residents. Thank you as well to Governor Kathy Hochul, Empire State Development and all of our partners who supported this project for working together to accelerate the growth of Rochester’s innovation economy."
Greater Rochester Chamber of Commerce President and Finger Lakes Regional Economic Development Council Co-Chair CEO Bob Duffy said, “Congratulations to Nick Myers and the whole Phoenix Tailings team on this tremendous announcement! With the opportunity to grow anywhere, this investment in Greater Rochester, and specifically in Eastman Business Park, is a strong signal that our community is open for business, capitalizing on our historic legacy to propel future growth and innovative redevelopment. Eastman Business Park is growing into a hub for job creation, sustainability, and once again, regional pride. Thank you to Governor Kathy Hochul, Nick Myers and all other partners whose leadership contributed to this decision. We are proud to help welcome Phoenix Tailings to our community.”
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.”
For additional information about Phoenix Tailings, visit phoenixtailings.com.
Accelerating Economic Development in the Finger Lakes
Today’s announcement complements “Finger Lakes Forward,” the region’s comprehensive strategy to generate robust economic growth and community development. The regionally designed plan focuses on investing in key industries including photonics, agriculture and food production, and advanced manufacturing. More information is available here.
About Empire State Development
Empire State Development is New York's chief economic development agency, and promotes business growth, job creation, and greater economic opportunity throughout the state. With offices in each of the state's 10 regions, ESD oversees the Regional Economic Development Councils, supports broadband equity through the ConnectALL office, and is growing the workforce of tomorrow through the Office of Strategic Workforce Development. The agency engages with emerging and next generation industries like clean energy and semiconductor manufacturing looking to grow in New York State, operates a network of assistance centers to help small businesses grow and succeed, and promotes the state's world class tourism destinations through I LOVE NY. For more information, please visit esd.ny.gov, and connect with ESD on LinkedIn, Facebook, and X.
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