The race for rare earths: Saskatchewan steps up to challenge China’s dominance
Saskatchewan, a powerhouse in agriculture, potash, and uranium production, is gearing up to carve a new niche for itself in the global resources competition between the US and China. Enter rare earths processing. This week, North America witnessed the inauguration of a state-of-the-art rare earth processing center in the vibrant city of Saskatoon. This initiative marks a pivotal moment in the ongoing battle to counter China’s stronghold on critical minerals required for green technology, defense, and aerospace industries.
Here are key points to understand the significance of this new venture:
- The Saskatchewan Research Council’s (SRC) Rare Earth Processing Facility, a $100 million investment, promises to process rare-earth minerals from various countries until large-scale Canadian mines come online.
- China currently monopolizes about 60% of global rare earth mining production and nearly 90% of processing and refining. This imbalance has spurred Western countries to establish local processing facilities to reduce dependence on China.
- The facility is equipped to produce enough metal inputs for half a million electric vehicles annually, positioning Canada and the US strategically in the rare earths supply chain.
Challenges and Opportunities:
- The ability to operate every aspect of the rare earths supply chain, from mining to processing and product manufacturing, poses a strategic challenge for North American countries.
- Previous events like Russia’s actions in Ukraine and China’s rare earth exports embargo to Japan have raised concerns about the vulnerability of the supply chain.
- The US Pentagon has been actively investing in rare earth projects to secure essential mineral supplies. With investments in facilities like the one in Saskatchewan and similar projects in Texas, the US is striving for autonomy in rare earth production.
Closing Thoughts:
As the global competition for critical resources intensifies, North America must invest in and support rare earth projects to counter China’s dominance effectively. Aligning incentives and providing robust governmental support are crucial steps in fostering a strong rare earth industry within the region. By adopting a strategic approach, North America can compete with China on a level playing field and ensure a stable supply of vital minerals for future technological advancements. The time to act is now.
