Saskatchewan wants to compete with China in the production of rare earth metals for electric vehicles.
• Saskatchewan aims to become a major player in the supply of rare earth materials.
At the time of writing, experts state that China controls 95% of global production and supply of rare earth metals. This near-monopoly allows China to dictate prices and create uncertainty for users by controlling exports.
Saskatchewan aims to have a say in this industry and even compete with China.
Rare Earths
But what exactly are rare earths? Simply put, the term “rare earths” refers to a group of 17 chemical elements on the periodic table that are essential for many modern products such as cell phones and batteries found in electric vehicles.
Despite the term used, these elements are not actually rare. The challenge is that they are difficult to extract and separate due to their dispersion in the earth’s crust. In other words, they are not concentrated in the soil, making extraction costly.
Saskatchewan intends to compete with China to become the primary North American commercial source for these metals, used in manufacturing magnets for electric vehicles.
With its upcoming rare earth processing center, the Saskatchewan Research Council (SRC) is banking on an increase in demand for these magnets in the next two years, driven by equipment manufacturers like automakers.
The province, known for its mining capabilities as it houses copper, potash, and uranium mines, has started commercial production at the rare earth processing plant. The plant aims to reach a production target of 40 tons of rare earth metals per month by the year-end. It will also produce 400 tons of NdPr metals (neodymium and praseodymium, key ingredients for making powerful magnets including those in electric vehicles) annually, enough for producing 500,000 electric vehicles, according to the SRC. The plant has already secured agreements with potential customers in South Korea, Japan, and the United States.
The price of rare earth metals like neodymium and praseodymium fluctuates between $65,000 and $75,000 per ton, a price set by the Chinese government.
“Our goal is to remain competitive in the Asian metal prices index. We are constantly looking to optimize our facilities with the use of artificial intelligence applications to maintain the efficiency of our processes,” explains Muhammad Imran, Vice President of SRC.
Automotive News also reports that some miners have requested a higher price for metals produced outside of China, arguing that Chinese metals are produced with lower environmental and social standards.
This development is worth monitoring, as if Saskatchewan achieves its goals, it will become a significant player in the future of electrification.
