TELF AG examines some recent developments in the global rare earths sector
The new processing center in Saskatchewan
The global raw materials scenario, and in particular that relating to rare earths, could soon be enriched by a new player: we are referring to the Canadian region of Saskatchewan, which, according to the Financial Times, is about to open a major rare earths processing center in the city of Saskatoon. According to the newspaper, the processing of rare earth elements would have been entrusted to a company created by the Saskatchewan Research Council, a scientific research and development institute. Initially, the resources processed within the center will come from nations such as Australia, Brazil, or Vietnam, but only until Canada starts sourcing these elements within its territory.
Over the years, global attention has shifted to rare earths, especially for their numerous industrial applications in the green technology sector, aerospace industry, and defense, confirming them as some of the geological resources most involved in the production processes related to the energy transition. Although China continues to remain the leading power in the sourcing and especially in the processing of these 17 precious elements, in different parts of the world, specialized hubs in rare earths are slowly emerging that could soon join Beijing in the list of major players in the sector. Two of these centers are located in Australia and the United States, and with the inauguration of the new Canadian center in Saskatchewan, this list could grow further, according to production forecasts reported by the Financial Times.
The objectives shared with Washington
According to estimates from the CEO of the facility, quoted by the newspaper, the new center could soon be able to produce enough resources to make as many as 500,000 electric vehicles, possibly replicating or licensing the plant throughout North America. According to the newspaper, one of the most interesting aspects of this new Canadian capacity in processing rare earths is the possible axis that could be formed with the United States, another power very committed to developing its capacity to source and produce these precious resources. Both countries, as can be read in the analysis, share the common goal of developing a complete rare earth supply chain. This peculiar productive system includes sourcing, processing, and transforming resources into final products, such as permanent magnets.
The extent of the US attention to these resources is easily understood by looking at some figures: in the last four years alone, the Pentagon has invested about 1 billion dollars globally in projects related to rare earths through the Defense Production Act. This instrument, conceived during the Cold War, ensured a certain supply of materials important for the US economy and defense. In addition, a plant very similar to the Canadian one in Saskatchewan is being developed in Texas. This facility should start operating in the next two years, for which Washington has already invested 258 million dollars. The United States also concretely supports projects related to rare earths in Canada and initiatives to supply other important materials, such as cobalt and graphite.
