Phoenix Tailings Secures $54.2 Million Incentive Package

The rare earth separation project at Eastman Business Park in Rochester receives state, local, and infrastructure support.

Updated on Nov. 5, 2026 in Manufacturing

Photograph of a large unlabeled industrial facility shell under construction beside a tower crane on flat terrain under overcast sky, suggesting new processing capacity in Rochester. — Phoenix Tailings secured $54.2 million in state, local, and infrastructure incentives for its Freedom Project rare earth separation facility at Eastman Business Park in Rochester. AI Illustration. Upload story photo >

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Phoenix Tailings was awarded $54.2 million in state, local, and infrastructure incentives for its Freedom Project, a planned rare earth separation facility at Eastman Business Park. The package builds on a previously announced conditional loan from the U.S. Department of War.

Why it matters

The financial support reduces project costs, allowing Phoenix Tailings to direct more capital toward processing equipment, production capacity, and hiring local workers. The project would add domestic rare earth processing capacity in the Rochester area.

The package totals $54.2 million against a $375 million facility valuation, including up to $3 million in performance-based Excelsior Jobs Program credits and roughly $15.9 million in New York investment tax credits. Phoenix Tailings projects $35.3 million in tax savings on eligible equipment and construction materials, while the anticipated power infrastructure funding remains unquantified.

The players

Phoenix Tailings

Phoenix Tailings is a company developing rare earth separation capacity in the United States, with the Freedom Project as its planned Rochester-area facility.

Monroe County

Monroe County is the New York county that includes Rochester and administers local economic development and workforce programs.

RED-Rochester

RED-Rochester is the economic development organization serving the Rochester region and a local partner in the incentive package.

The details

The incentives combine state tax credits, local tax benefits, and anticipated infrastructure funding for the 500,000-square-foot facility. Monroe County programs are expected to support equipment purchases and workforce training, with partners including RED-Rochester.

Phoenix Tailings plans to begin some operations at Eastman Business Park in 2027.
Full production at the facility is expected in 2028.

Industry Context

The Freedom Project extends the U.S. Department of War's conditional loan for domestic rare earth processing by layering state and local incentives onto the same project. Its state and local financing is built on top of that federal commitment rather than replacing it.

The project is expected to bring hiring and workforce training to the Rochester area as operations begin in 2027. Residents may see new manufacturing jobs tied to rare earth processing once production ramps up in 2028.

The takeaway

Local incentives can close funding gaps for strategic domestic manufacturing projects, and the Phoenix Tailings package shows how state, county, and federal support can stack on a single facility. Watch for disbursement details on the Monroe County programs as the 2027 start approaches.