Saskatchewan Aims to Compete in Rare Earths Production

This Sept. 23 story has been refiled to say ‘Metals producer,’ not ‘Miner,’ in the headline

By Divya Rajagopal

TORONTO (Reuters) – The Canadian province of Saskatchewan has vowed to compete with China in the processing and production of rare earths and aims to be the first North American commercial alternative source for these metals, which are crucial for making magnets for electric vehicles (EVs) and wind turbines.

The Saskatchewan Research Council (SRC) Rare Earth Processing facility anticipates a surge in demand for these magnets in the coming years, primarily driven by original equipment manufacturers like automakers.

Known for its mining capabilities, Saskatchewan is home to various mines for copper, potash, and uranium.

China currently dominates the industry, controlling 95% of global production and supply of rare earth metals. This near-monopoly gives China significant power over pricing and introduces uncertainty for end users via export controls.

In the past year, China has implemented export restrictions on vital metals like germanium and gallium, prompting western governments to seek alternatives.

The SRC Rare Earth processing facility has started commercial-scale production and aims to achieve a monthly production target of 40 tonnes of rare earth metals by year-end. The facility plans to produce 400 tonnes of NdPr metals annually, sufficient for manufacturing 500,000 EVs, and has secured 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 SRC Rare Earth Element. “We continually seek to optimize our facility using AI applications to enhance efficiency,” he added.

Prices for rare earth metals such as neodymium praseodymium (NdPr) fluctuate between US$65,000 and US$75,000 per tonne, with rates influenced by the Chinese government.

Some miners have called for a premium price for metals sourced outside China, citing lower environmental and social governance standards in Chinese production.

Nonetheless, Imran asserts the market will stay competitive, and manufacturers must be equipped to meet the Asian Metals Index reference point.

“This is what the market indicates for rare earth prices; if someone can secure a better deal, that’s excellent, but whether it’s a premium or not, the market will remain competitive,” he stated.