Miner backed by Canada province vows to compete with China in rare earths
The Canadian province of Saskatchewan aims to challenge China s dominance in the rare earth metals market, which are crucial for manufacturing electric vehicle and wind turbine magnets. The Saskatchewan Research Council Rare Earth Processing facility is scaling up production to meet the anticipated surge in demand from original equipment manufacturers, particularly automakers. China currently controls 95% of the global production and supply of rare earth metals, allowing it to set prices and create uncertainty through export controls. In response, western governments are seeking alternative sources. The SRC facility has begun commercial-scale production and expects to reach a monthly output of 40 tonnes of rare earth metals by year s end, sufficient to power half a million electric vehicles. The facility has established partnerships with potential clients in South Korea, Japan, and the United States. Muhammad Imran, the vice president of the SRC Rare Earth Element, emphasizes the need to remain competitive within the Asian Metals Price Index. The facility is also exploring the use of artificial intelligence to optimize its processes. The price of rare earth metals, such as neodymium praseodymium (NDPR), fluctuates between US$65,000 and US$75,000 per tonne, a price set by the Chinese government. However, some miners argue for a premium price for metals produced outside China due to lower environmental, social, and governance (ESG) standards. Despite this, Imran asserts that the market will remain competitive, and manufacturers must be prepared to meet the reference point of the Asian Metals Index. He acknowledges that while striking a better deal is advantageous, the market will ultimately be competitive, with premium or no premium prices. This development in Saskatchewan s rare earth metals industry could potentially reduce China s monopoly and provide a more stable supply for the growing demand in the electric vehicle and wind turbine sectors.
Source: marketscreener.comPublished on 2024-09-23
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