Defense Metals, a Canadian rare earth exploration company, recently entered into an exciting partnership with the Saskatchewan Research Council (SRC) to bolster the development of a domestic rare earths supply chain. This collaboration, unveiled on Thursday, aims to achieve several key objectives:
- Exploration of Joint Initiatives: The partnership will explore potential joint initiatives related to the processing and supply of rare earth materials.
- Utilization of SRC’s Technology: Discussions will involve leveraging the SRC’s rare earths separation technology for Defense Metals’ products.
- Negotiation for Supply Agreement: Both organizations plan to pursue negotiations for a long-term supply agreement.
The significance of this alliance lies in its strategic importance for enhancing North American supply chains of critical materials, as emphasized by Guy de Selliers, the executive chairman of Defense Metals. He highlighted the crucial role this partnership plays in securing the availability of rare earths for vital applications in green energy and defense, essential for national security.
The agreement aligns with broader national efforts towards reducing dependence on foreign sources for critical minerals. Notably, the Canadian government’s Critical Minerals Strategy focuses on fostering domestic mineral industries to fortify the country’s economic security and competitiveness within clean energy and defense sectors.
Contributing to national security objectives, the partnership ensures the availability of essential rare earths crucial for a multitude of modern technologies like electric vehicles and military systems. This MOU marks one of SRC’s recent strategic moves in the sector, following its successful commercial-scale rare earths production at a processing facility in Saskatoon, Saskatchewan.
Key updates on this front include:
- Commercial Production Milestone: The facility is currently producing rare earth metals at commercial levels, with exceptional purities exceeding 99.5 percent and a high conversion rate of over 98 percent.
- Expansion Plans: SRC plans to ramp up production to 40 metric tons per month by December 2021, aiming to achieve an annual capacity of 400 metric tons by early 2025.
In another significant development, SRC recently inked a similar agreement with Arafura Rare Earths to explore processing heavy rare earths like dysprosium and terbium from Arafura’s Nolans project in Australia.
As the demand for clean energy technologies surges amid the ongoing global energy transition, the rare earths industry’s prominence grows. However, challenges persist due to China’s dominance in the supply chain. This partnership underscores the importance of securing a domestic supply chain for critical materials essential for advancing sustainable technologies and national security.
In conclusion, the Defense Metals-SRC partnership signals a pivotal step towards strengthening North American rare earths supply chains and securing critical materials for the future. As countries strive for self-reliance in the critical minerals sector, collaborative efforts like these pave the way for sustainable development and technological advancement.
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