RARE EARTH ELEMENTS: U.S. & CANADA IN DEFENSE AND INDUSTRIAL TECHNOLOGIES

 March 5, 2025

Rare Earth Elements (REEs), a group of 17 minerals, play a vital role in the creation of major defense technologies, wind turbines, electric vehicles, and electronics, owing to their profound applicability in magnets, alloys, and other components. While the standard definition of REEs refers to the 17 elements in the lanthanide series plus scandium and yttrium, both the U.S. and Canada use broader frameworks for critical minerals that include REEs. The U.S. Geological Survey (USGS) and Department of Energy (DOE) maintain a 2022 Critical Minerals List with 50 minerals deemed essential to economic or national security and vulnerable to supply chain disruption.

On June 10, 2024, Natural Resources Canada (NRCan) announced an updated Critical Minerals List, expanding it from the original 31 minerals established in March 2021 to a total of 34.

Though the U.S. holds considerable REE reserves, its self-sufficiency is compromised due to a lack of robust domestic refining and separation capacity.

The Mountain Pass mine in California, the U.S's only operating rare earth mine, contributes roughly 15% of the world's supply of rare earth oxides. Despite this, much of its yield is shipped to China for processing, as China oversees about 85% of global rare earths processing and production of over 90% of rare earth magnets.

Notably, additional ore deposits exist at the Round Top project in Texas and Halleck Creek, Wyoming, signaling that the U.S. potentially owns enough raw materials to cater for a substantial portion of its requirements.

However, the surfacing of new mines is a notably slow procedure. Irrespective of the country's known deposits, permissions alone can take between seven to ten years due to strict environmental evaluations and regulatory standards. Following this, an additional span of two to five years is required for the mine construction and operationalization. The U.S, therefore, faces the challenge of achieving full self-reliance in short notice.

On the other side of the border, Canada holds vast potential in supplementing the U.S. need for REEs. With Rich mineral diversity, including REEs and a collaborative U.S-Canada action plan on critical minerals, Canada emerges as a key strategic partner.

The Department of Defense (DoD) even considers Canada a 'domestic source', thereby making Canadian REE projects eligible for U.S funding.

Canada harbors some of the largest known REE reserves worldwide. Notably, the Saskatchewan Research Council's (SRC) processing facility began operations recently, marking the inception of North America's first commercial-scale REE refinery. By 2025, it's anticipated to produce enough to fulfill 4–5% of U.S. defense REE needs.

Ultimately, even though the U.S has ample rare earth resources, the immediate capacity to process them entirely for defense-specific production is absent. Achieving this will take an estimated 7–15 years.

Conversely, through its rich resources, new processing capacity, and strategic alignment, Canada is set to play a vital role in addressing North American REE requirements, potentially shouldering 10-20% of U.S defense needs within 3-5 years..


Mining News: www.minestockers.com

Blog: miningbusinessinsights.blogspot.com


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