Miner Backed by Canadian Province Aims to Compete with China in Rare Earths, According to Reuters

By Divya Rajagopal

TORONTO (Reuters) – The Canadian province of Saskatchewan is positioning itself to rival China in the processing and production of rare earth elements, aiming to become the first commercial alternative source in North America for these crucial metals, which are vital for manufacturing magnets used in electric vehicles and wind turbines.

The Saskatchewan Research Council’s Rare Earth Processing facility anticipates a surge in demand for these magnets in the coming years, largely driven by original equipment manufacturers, including automobile makers.

Saskatchewan is already renowned for its mining capabilities, being home to potash and uranium mines.

Currently, China dominates the global market, controlling 95% of rare earth metal production and supply. This near-monopoly enables the country to set prices and create uncertainty for consumers through export regulations.

Recently, China has imposed export restrictions on several critical metals, including germanium, gallium, and antimony, prompting Western governments to seek alternative sources.

The SRC Rare Earth processing facility has commenced production at a commercial scale and is on track to achieve a monthly production target of 40 tonnes of rare earth metals by the year’s end. By producing 400 tonnes annually of neodymium and praseodymium (NdPr), the facility can supply materials for approximately 500,000 electric vehicles, as stated by SRC. The facility has already established partnerships with potential clients in South Korea, Japan, and the United States.

“Our focus is to remain competitive within the Asian Metals Price Index,” said Muhammad Imran, vice president of the SRC Rare Earth Element. “We are continuously optimizing our facility operations using artificial intelligence applications to enhance efficiency,” he added.

The market price for rare earth metals, such as NdPr, fluctuates between $65,000 and $75,000 per tonne, a rate influenced by the Chinese government. Some miners have begun advocating for a premium price on metals sourced outside China, citing concerns over low environmental, social, and governance standards associated with Chinese production.

Nonetheless, Imran emphasized that the market will continue to be competitive. Manufacturers must be prepared to align with the Asian Metals Index reference point.

“This is what the market indicates as the pricing for rare earth metals; if someone can negotiate a better deal, that’s excellent, but regardless of premiums, the market will remain competitive,” he stated.