The Canadian province of Saskatchewan is positioning itself as a competitive player in the rare earths market, aiming to become North America’s first commercial alternative to China for the processing and production of these critical metals, which are essential for manufacturing magnets used in electric vehicles and wind turbines.
The Saskatchewan Research Council’s Rare Earth Processing facility is anticipating a surge in demand for these magnets, driven by original equipment manufacturers, particularly in the automotive sector. Currently, China dominates the global rare earth supply, controlling 95% of production, which allows it to dictate prices and impose export controls, creating uncertainty for consumers.
In response to China’s recent export restrictions on metals like germanium, gallium, and antimony, Western governments are actively seeking alternatives. The SRC facility has commenced commercial production and aims to reach a target of 40 tonnes of rare earth metals per month by the end of this year, sufficient to power approximately half a million electric vehicles. The facility has already established connections with potential clients in South Korea, Japan, and the United States.
Muhammad Imran, vice president of the SRC Rare Earth Element, emphasized the goal of remaining competitive within the Asian Metals Price Index. The facility is leveraging artificial intelligence to optimize its operations for efficiency. Currently, the price of rare earth metals like neodymium praseodymium (NDPR) ranges from $65,000 to $75,000 per tonne, largely influenced by Chinese pricing.
While some miners are advocating for a premium for metals sourced outside China, citing lower environmental and social governance (ESG) standards in Chinese production, Imran believes that the market will remain competitive, and manufacturers must align with the Asian Metals Index pricing.