Canada has recently inaugurated a rare earth refining plant in Saskatchewan, a significant development in the global supply chain for these critical materials.
Began Commercial Production
With China dominating over 80% of the rare earth refining market, this new facility represents a pivotal shift towards greater independence for North America and its allies.
The plant began commercial production this summer, focusing on refining neodymium and praseodymium, two essential rare earth elements used in electric vehicles and wind turbines. Currently, the facility is set to produce ten tons per month, with plans to ramp up to 40 tons monthly by December, according to El Economista.
By 2025, the goal is to operate at full capacity, producing approximately 400 tons annually — enough to support half a million electric cars.
Only a Handfull Outside China
Globally, only a handful of rare earth refining projects exist outside of China, with facilities in Malaysia, Estonia, and Australia.
The United States is also investing in similar initiatives, including a $288 million funding boost to Lynas Rare Earths to expand processing operations stateside.
Additionally, MP Materials, which operates a refining plant in California, is expected to be fully operational next year, having received $45 million from the U.S. Department of Defense.
Rare earth elements are vital not just for electric vehicles, but also for various high-tech applications due to their magnetic properties and heat resistance.
The U.S. Defense Department highlights the national security risks posed by reliance on foreign sources for these materials, emphasizing the need for diversification in supply chains.
