Greenland is rich in rare-earth minerals, gold, iron-ore, uranium, and has hydro and wind power potential.

The island has a favourable legal framework and robust infrastructure, particularly in South Greenland.

New Performance Materials has obtained a license to explore for rare earth minerals in Greenland.

The company plans to develop the Sarfartoq project to diversify its rare earth ore sources and expand supply chains.

The Sarfartoq carbonatite complex contains rich deposits of neodymium and praseodymium.

The Kuannersuit area in southern Greenland has the world's second-largest rare earth deposit.

The deposit is rich in uranium, but mining is now prohibited due to a new Greenlandic law.

Tanbreez Mining has been granted permission to mine rare earth minerals in Greenland, with production set to start in 2024.

The Tanbreez mine is estimated to contain over 19 million tons of rare earth oxide, including 30% heavy elements.

Extracting rare earth minerals can be difficult and environmentally harmful due to the acid refining process.

The European Union and Greenland have signed a partnership to develop sustainable raw materials, including rare earth minerals.

The partnership aims to diversify Greenland's economy sustainably.

Jeff Bezos, Michael Bloomberg, and Bill Gates are investing in large-scale treasure hunting operations in Greenland to search for rare earth minerals.

Kobold Metals is searching for what could be the world's largest or second-largest nickel and cobalt deposit.

The company is backed by billionaires Bezos, Gates, and Bloomberg.

Greenland is a potential hot spot for coal, copper, gold, rare earth elements, and zinc.

The European Union is working to diversify its rare earth supply, aided by a large Swedish deposit expected to be market-ready in 10-15 years.

The cost of equipment to separate rare earth minerals has dropped from $1.7 billion to $40 million over 13 years.

Rare earth mineral separation factories currently only exist in Russia and China, but new ones are planned for the US and Europe.

The demand for rare earth minerals is driven by electric cars and renewable energy technologies.

The climate crisis is melting Greenland's ice, revealing valuable minerals that attract investors and mining companies.

The European Union and Greenland will develop sustainable raw material value chains with high environmental, social, and governance standards.

Greenland has 25 of the 34 critical raw materials identified by the European Commission.

The partnership will focus on five key areas, including economic integration, joint projects, and new business models.

The European Union will support Greenland in developing its infrastructure and mobilizing financing.

The partnership will enhance cooperation in research and innovation for sustainable raw materials.

Greenland is eligible for the EU's Horizon program and Copernicus satellite data.

The agreement was signed by European Commission Executive Vice-President Maros Sefcovic and Greenland's Minister Naaja Nathanielsen.

The European Union aims to source 10% of its critical raw materials from mining, 15% from recycling, and 40% from processing by 2030.

The EU aims to cap its reliance on a single country for key raw materials at 65%.

The US estimates a $200 million cost to build new factories for separating rare earth minerals, an investment made by the Biden administration.

MP Materials forecasts building a Texas facility to produce NdFeB magnets by the end of 2023.

The UK is building a £145 million rare earth mineral separation facility in East Yorkshire, set to be the 2nd largest outside China, and expected to start operating by the end of 2023.

Lynas Corp has been awarded a $US120 million contract to build a heavy rare earths facility in Texas.

The US Department of Energy has given West Virginia University researchers $8 million to extract rare earth elements from acid mine drainage and coal waste.

The US administration is investing $35 million in MP Materials to separate and process materials at its California facility.

Solvay plans to invest tens of millions of euros to upgrade its La Rochelle factory in France for wider rare earth separation.

The EU relies on China for 80% of its rare earth metal processing.

EU demand for rare earths is expected to increase fivefold by 2030.

Iluka in Australia is building a rare earths refinery, set to open in 2025, at a cost of $675-800 million, aided by government grants.

The global lithium supply must increase 42-fold by 2040 to meet demand, says the International Energy Agency.

Global demand for rare earths is driven by the goal of achieving net-zero carbon emissions by 2040.

The US and its allies aim to build a separate rare earth supply chain by 2027.

China produced 240,000 metric tonnes of rare earths last year, over five times the US output.

China processes around 90% of the world's rare earths.

The US and Europe's reliance on China for rare earth minerals makes them vulnerable to supply chain disruptions that could impact industries like renewable energy, electronics, and defense.

Greenland is rich in rare-earth minerals, gold, iron-ore, uranium, and has hydro and wind power potential.

Title:

Content: AEX Gold aims to invest in Greenland through its new gold mining project

Traditionally known for its fishing and hunting industries, Greenland is fast becoming the next significant area of exploration for mining businesses. The largest island in the world, Greenland remains one of the least populated areas worldwide with 56,000 citizens, and it has sought to attract local and foreign investment across a number of new projects.

The island’s current position remains complex. A sovereign government, it is positioned under the Danish kingdom who provide grants to support its local economy. To further its independence and bolster its economy to create increased tax revenue, Greenland has embraced the exploration of new mining projects as well as utilising all the renewable and local resources it has to offer.

Rich in rare-earth minerals, gold, iron-ore, uranium, in addition to hydro and wind power, Greenland’s favourable legal framework and robust infrastructure, particularly in South Greenland, have factored into AEX Gold’s vision to explore through its Greenlandic subsidiary, Nalunaq Gold Mine, situated in the Nanortalik Gold belt, Southern Greenland.

Acquiring an existing Exploitation Licence in 2015, the company is at the advanced exploration stage of its Nalunaq property, including the previously operating Nalunaq Gold Mine.   It also holds Exploration Licences at the early exploration stage Vagar and Tartoq properties.

Hosting a high-grade NI 43-101 compliant gold resource estimate of 263k oz (inferred) at 18.7 g/t and a number of regional exploration targets, AEX Gold has undertaken three years of exploration at Nalunaq, developing an updated geological model and an extension of the main vein strike length up to 1km.

“The government is very supportive, so it's about having a sound exploration strategy. We are very much focused on that, as we have an asset package that we think we can grow and create a lot of value,” explains Chief Executive Officer, Eldur Olafsson.

Originating from Iceland, Olafsson has gained extensive experience of the local geography. Focusing on mining projects in Greenland since 2012, he has analysed the country’s potential against the backdrop of environmental responsibilities and associated legalities with partner SRK Exploration Services. Through this process, the business has turned its attentions solely towards gold exploration.

“The known gold deposits in Greenland are in an area where the climate is mild and, given our experience, logistics are relatively easy. Gold opportunities are easier to finance than larger base metals projects and our perception was that we could fully fund projects like these through our support here in Iceland and in the UK market,” he explains.

“We started looking for opportunities in the South Greenland Gold Province and became aware of this historically producing mine. We were attracted by the extremely high-grade potential of the resource and the fact that the project had significant infrastructure in place.  We believed there were significant opportunities to materially improve the mining operation that had been run by previous operators.”

Extensive exploration

Throughout the exploration of high-grade resources, Olafsson is proud to remain hands on and is regularly seen on site. By undertaking various technical studies, AEX has gained the ability to comprehensively analyse similar types of assets with potential.  After acquiring the Nalunaq project in 2015 the company has continued to expand its portfolio. Whilst Nalunaq encompasses the required licence to explore and recommence production at the old gold mine, they own the larger Vagar exploration licence, situated a few kilometres to the west of the mine, where AEX believes the ground is prospective for the discovery of further Nalunaq-type deposits.  In addition, they also own the early stage Tartoq Project to the North West of Nalunaq. Each licence area is at a different stage of exploration which supports AEX’s aim of having a continuous pipeline of projects being brought into production.

“We have a total of 690sqkm of licences in south Greenland and we're the only active listed gold company in Greenland. Previous operators undertook very little forward-looking exploration once the mine was in production.  It's a very under-explored region so we intend to recommence production within the next two years at Nalunaq in order to support our exploration in the larger licences in the next 5-10 years,” he says.

“Iceland is a short distance from Greenland, so logistically it’s good for us. Additionally, in Iceland you need to be really self-sufficient, and the same can be said for those in Greenland. We don't have as many people or the multitude of services that you would have in other countries which encourages you to think creatively,” he adds.

Consequently, the company has sought to maximise efficiency whilst keeping costs down, yet all the time adding increased value across its operations.

By acquiring a high-grade deposit, less material is needed to be broken down, lowering AEX Gold’s carbon footprint. Everything taken out of the mine from underground will be processed and shipped out to a different processing facility, or processed on site adhering to the current environmental guidelines. Historically, electricity has been generated through the use of traditional fossil fuels, something which is steadily changing throughout Greenland.

“We're using oil to put in generators or to power mobile mining equipment which is high cost both in monetary and environmental terms.   Greenland currently has five hydroelectric power plants and they are looking at building more in south Greenland,” says Olafsson.

Seeing huge opportunities, he explains that the use of hydropower and wind power would complement AEX Gold’s operations, not only in its existing exploration activities, but with the implementation of an electric mining fleet with electricity being obtained from local renewable resources.

Providing local opportunities

In the future, it will be essential for Greenland to gain further revenue to unlock opportunities and services for its citizens. This is something Olafsson believes that AEX Gold can help with due to its knowledge of Iceland as it has many similarities to Greenland and has been through a period of comparable change.

“Greenland is in a similar position to Iceland not so long ago. Iceland didn't have a high education rate and wasn’t wealthy compared to other European countries, with economic and cultural activities that were very insular. We are now at the highest level of all parameters in terms of education, wealth per family, etc. and this has stemmed from improving the breadth of schooling and creating opportunities for people to grow and develop outside of the traditional areas of agriculture and fisheries.

“Our aim is that the majority of employees will be Greenlandic, but it will take time. Greenland has a large number of people competing for jobs in the fisheries and tourist centres. It is important that Greenlanders are able to access programmes that will allow them to consider other career options. In Iceland we are importing a lot of people to work in different industries in our country because we don't have enough people. This might be the case for Greenlanders as well if the anticipated growth of the Mining Sector materialises but we want to ensure that, where possible, we use local people first before looking elsewhere.

“The Greenlandic Government provides good support for those who seek education.  There are an increasing number of Greenlandic students attending Danish Universities so that now, for example, we are seeing well qualified Greenlandic geologists available for employment.  There has been a Mining School at Sisimiut for the last 10 years which provides local qualified labour who can take advantage of opportunities in the Mining sector.  You need skilled labour and as we own a mine that was in production for 10 years previously, there is a fair bit of local knowledge that we have been able to use during our exploration work and which we are keen to utilise going forward,” he says.

“We are creating revenue for local communities, creating highly skilled jobs, and are providing benefits where local communities can live better lives and grow as individuals. We need to create opportunities for young people.”

Additionally, by working with local businesses as well as those who have been operating in Greenland for some time, AEX has made a conscious effort to hire companies which can support its growth. AEX have therefore acquired a longstanding relationship with Cartwright Drilling, due to the company’s extensive experience in Greenland and subsequent knowledge of the island’s government systems, processes and practices.

Planning to mine high-grade resources using significant infrastructure already in place, AEX Gold holds extensive licences managed by an experienced team. Previous operations produced between 50,000 to 100,000 ounces a year at 15.4 grams/ton produced and this has provided a benchmark for the company, who will utilise this cash flow to explore the wider region in the long-term.

“We have a five-year plan where we want to get into production at Nalunaq and use the cash generated to fund exploration in the wider district.   We envisage investing a significant amount in exploration assets to provide a portfolio of different deposits that we can bring into production. We are creating a company that has a long-term mission in Greenland to build up local know how to support our aim of ramping up to very profitable production across a number of projects,” notes Olafsson.

“It will create a dramatic effect on the local community and hopefully be a springboard for unlocking much larger potential in Greenland. There are plenty of deposits that have been found, but you have to be able to develop them. You can only do that that with support and cooperation from the local people who believe in your vision.”

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What does Greenland's Tanbreez mine contain?

The island has a favourable legal framework and robust infrastructure, particularly in South Greenland.

Why AEX consider Greenland a favorable mining location?

robust infrastructure
favorable legal framework

New Performance Materials has obtained a license to explore for rare earth minerals in Greenland.

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Content: A Canadian company has been granted a license to mine rare metals in Greenland.
© AP Photo / David Goldman Greenland ice melt August 3, 2017
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Toronto ’ s New Performance Materials, one of the few rare earth metal processors outside China, has obtained an exploration license in Greenland from Hudson Resources in Vancouver (Canada).
Washington - Sputnik.
“Through a special-purpose entity, NEO plans to explore and develop the Surfertog project to further diversify its global sources of rare earth ore and expand the supply chains that feed the company ’ s rare earth ore separation facility in Estonia, ” it said in a statement.
NEO CEO Constantine Karianopoulos told the New York Times that his goal was to reduce the company ’ s exposure to volatile global crude prices.
NEO buys semi-processed raw materials from Russia, the United States and Australia.
"Collects Rare Minerals"...
China enters the world of "space mining" with the launch of the first robot...
A picture.
The Surftog Carbonatite complex contains mineral deposits rich in neodymium and praseodymium, which are essential components of the rare earth permanent magnet used in electric vehicles, wind turbines, high-efficiency electric motors and pumps that help reduce greenhouse gas emissions.
NEO also plans to build a new permanent magnet manufacturing plant in Estonia to supply European manufacturers of electric and hybrid vehicles, wind turbines, and energy-efficient electric motors and pumps, the statement said.
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What Canadian rare earths processing company obtained an exploration permit in Greenland?

The company plans to develop the Sarfartoq project to diversify its rare earth ore sources and expand supply chains.

The Sarfartoq carbonatite complex contains rich deposits of neodymium and praseodymium.

The Kuannersuit area in southern Greenland has the world's second-largest rare earth deposit.

Title:

Content: Greenland ban on uranium mining prevents Chinese companies from expanding rare earths
November 13, 2021 17: 33
Eastern Network Television
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As part of its Arctic strategy, China has supported the mining of rare earths in Greenland by Australia ’ s Greenland Minerals, a Chinese-owned subsidiary of Shenghe Resources, through the Belt and Road Initiative.
However, Greenland ’ s parliament passed a new law banning uranium mining and halting the development of rare earth deposits at Kuannersuit, the southern tip of Greenland.
China's rare earth mining accounts for more than 70% of the global mining volume, and China's rare earth magnetic processing volume accounts for 90% of the global processing volume.
Sungho Resources, one of the world ’ s largest producers of rare earth materials, acquired a 12.5% stake in Greenland Minerals in 2016, making it the largest shareholder in the latter.
Guanast in southern Greenland is home to the world ’ s second-largest reserves of rare earths and uranium after China, accounting for 10% of the world ’ s rare earth production.
Since former US President Donald Trump proposed the idea of buying Greenland in 2019, the rich rare earth resources of Guanaster in southern Greenland have attracted attention.
Greenland ’ s local parliament was elected early on April 6. In the end, the pro-environmental left-wing Inuit Ataqatigiit party won the election, and its leader, Mute Egede, became the new prime minister.
He declared that he would do everything in his power to stop the Guanast Rare Earth Mine project.
In response, Greenland ’ s parliament has passed a new bill aimed at banning exploration of uranium deposits, as well as other radioactive deposits such as thorium, and halting the development of rare earth deposits at the southern tip of Greenland.

The deposit is rich in uranium, but mining is now prohibited due to a new Greenlandic law.

Tanbreez Mining has been granted permission to mine rare earth minerals in Greenland, with production set to start in 2024.

Title:

Content: Greenland to mine rare earths in 2024 | Economic Horizontal | DW | 30.07.2023
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Greenland to mine rare earths in 2024
According to the German "Economic Weekly" reported that a mining company has obtained permission from the Greenland government to mine rare earths on the island.
The company said production could begin next year.
Tanbreez Mining, a mining company, plans to mine rare earths in Greenland next year, according to the Economic Weekly.
“We can start production next year, ” said Greg Barnes, a geologist and owner of the company. Greenland ’ s deputy minister for minerals confirmed to the journal that a mining licence had been issued.
Barnes said the Tanbreez mine "contains more than half of the world's rare earth resources" and has 19 million tons of rare earth oxides.
Of these, 30% are highly favored heavy rare earth elements.
Rare earth contains a total of 17 kinds of metal elements, the properties of each metal are different.
Each metal has a unique industrial value.
Some of them are irreplaceable.
They are used, for example, in the manufacture of electric vehicles or wind turbines.
Last year, about two-thirds of Germany ’ s rare earths came from China. Mining such as rare earths is difficult and often harmful to the environment, as rare earths are often associated with iron ore, and the chemical process of refining often requires the use of acidic substances.
What is Rare Earth?
Barnes, owner of Tanbreez Mining, told Economic Weekly that to start mining for rare earths in Greenland, a factory would be needed to separate rare earths from heterosexual rocks.
Currently there are only such factories in Russia and China.
But one such plant will be built in the United States in the coming months.
There are also plans to build a factory in Europe.
Thanks to technological advances, the equipment that separates rare earths currently costs only $40 million.
According to Barnes, China paid 1.7 billion U.S. dollars for the equipment 13 years ago.
In January, Swedish state-owned mining company LKAB announced the discovery of Europe ’ s largest rare earth deposit to date.
But the company said it would take 10-15 years for the rare earth mine, located in Kiruna in northern Sweden, to be available to the market.
EU Plans to Diversify Rare Earth Supply Chain
(Agence France-Presse, Economic Weekly)
© 2023 Deutsche Welle Copyright Notice: All content in this article is protected by copyright law and may not be used without special permission from Deutsche Welle.
Any misconduct will lead to recovery and criminal prosecution.
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What company has obtained permission to extract Greenland's rare earths?

The Tanbreez mine is estimated to contain over 19 million tons of rare earth oxide, including 30% heavy elements.

What does Greenland's Tanbreez mine contain?

30% of oxides are highly sought after heavy rare earth metals

Extracting rare earth minerals can be difficult and environmentally harmful due to the acid refining process.

The European Union and Greenland have signed a partnership to develop sustainable raw materials, including rare earth minerals.

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Content: Friday 01 December 2023
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EU and Greenland sign strategic partnership on raw material value chains
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The European Union has signed a memorandum of understanding with the Government of Greenland in Brussels to establish a strategic partnership to develop sustainable raw material value chains.
Greenland ’ s vast natural wealth is a key asset for reaping the benefits of global value chains, as it seeks to diversify its economy in a sustainable way, while 25 of the 34 critical raw materials identified by the Commission as strategically important for European industry and green transformation can be found in Greenland.
The Executive Vice President of the European Green Deal, Enterprise Relations and Foresight of the European Commission, Maros Sivčović, signed the Memorandum of Understanding with the Government of Greenland represented by the Minister of Business, Trade, Mineral Resources, Justice and Gender Equality, Naga Nathanelsen.
The signing of the MoU will contribute to the development of sustainable projects along the raw materials value chains and the deployment of the necessary infrastructure for their development.
The MoU provides for close cooperation between Greenland and the EU in five important areas; among which is the development of economic and industrial integration of the value chains of vital raw materials and other raw materials.
This includes networking, joint project development, creating and promoting new business models, attracting investments, supporting access to finance, facilitating business linkages, developing and integrating support for economic diversification and ensuring the smooth functioning and resilience of value chains.
Foster collaboration to leverage high environmental, social and international governance (ESG) standards, to ensure that Greenland ’ s mineral sector serves as a lever for sustainable and inclusive economic growth while creating local and local value.
This includes the sustainable exploitation of mineral resources in close dialogue with the Greenland community of individuals, organisations, institutions and other stakeholders, taking fully into account the unique nature of Greenland ’ s pristine lands and applying high environmental, social and governance standards set out in legislation, conventions, guidelines and best practices.
Deploy the infrastructure needed to develop raw material value chains.
This includes taking into account the specificities of Greenland's transport and energy infrastructure needs, taking into account Arctic or sub-Arctic conditions, and supporting the mobilization of funding for such infrastructure.
Capacity building and skills development along raw material value chains.
This includes developing skills at all levels in the raw materials industry and wider society.
Greenland is eligible to participate in the EU Framework Programme for Research and Innovation and provides Earth observation data thanks to the European Copernicus Satellite Programme which offers promising opportunities related to mineral exploration, sediment mapping and mining monitoring including waste management and environmental impact monitoring.
according to the statement.

The partnership aims to diversify Greenland's economy sustainably.

Jeff Bezos, Michael Bloomberg, and Bill Gates are investing in large-scale treasure hunting operations in Greenland to search for rare earth minerals.

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Economics.
A race between financiers around the world to search for this substance in Greenland.
Interesting details!
10-08-2022 | 00: 49
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CNN reports that some of the world ’ s wealthiest people are funding large treasure hunts using helicopters and signal transmitters on Greenland ’ s west coast.
The climate crisis is causing Greenland ’ s ice to melt at unprecedented rates, ironically creating an opportunity for investors and mining companies looking for a treasure trove of important minerals capable of powering clean energy transitions.
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Search for minerals in Greenland
Many billionaires, including Jeff Bezos, Michael Bloomberg and Bill Gates, are betting that what lies beneath the surface of the hills and valleys of Disco Island and Greenland ’ s Noswak Peninsula are important enough minerals to power millions of electric vehicles.
Speaking to CNN, Kobold Metals CEO Kurt House said: “We are looking for a deposition that will be the largest or second largest nickel and cobalt deposition in the world. ”
The disappearance of Arctic ice – both on land and in the ocean – highlights a unique dichotomy: Greenland is the zero point for the effects of climate change, but it could also be the zero point for the search for the minerals needed to provide solutions to this crisis.
For their part, representatives of Kobold Metals, a California-based mineral exploration company, said the billionaires ’ club is supporting the company financially.
Bezos, Gates and Bloomberg did not respond to requests from CNN for comment on the news, and Kobold Metals is partnering with Bluejay Mining to find precious and rare metals in Greenland, which are essential for building the electric vehicles and huge batteries needed to store renewable energy.
The Geological Survey of Denmark and Greenland said Greenland could be a hot spot for coal, copper, gold, rare earth elements and zinc.
The Greenland government has conducted several assessments on ice-free land and is aware of the country ’ s “ability to diversify the national economy through mineral extraction, ” the agency said.
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Kobold Metals is searching for what could be the world's largest or second-largest nickel and cobalt deposit.

The company is backed by billionaires Bezos, Gates, and Bloomberg.

Greenland is a potential hot spot for coal, copper, gold, rare earth elements, and zinc.

What does Greenland's Tanbreez mine contain?

The European Union is working to diversify its rare earth supply, aided by a large Swedish deposit expected to be market-ready in 10-15 years.

The cost of equipment to separate rare earth minerals has dropped from $1.7 billion to $40 million over 13 years.

How much will it cost to build a facility to separate and extract rare earth minerals?

Rare earth mineral separation factories currently only exist in Russia and China, but new ones are planned for the US and Europe.

The demand for rare earth minerals is driven by electric cars and renewable energy technologies.

The climate crisis is melting Greenland's ice, revealing valuable minerals that attract investors and mining companies.

The European Union and Greenland will develop sustainable raw material value chains with high environmental, social, and governance standards.

Greenland has 25 of the 34 critical raw materials identified by the European Commission.

The partnership will focus on five key areas, including economic integration, joint projects, and new business models.

The European Union will support Greenland in developing its infrastructure and mobilizing financing.

The European Union will support Greenland in developing its infrastructure and mobilizing financing.

The European Union will support Greenland in developing its infrastructure and mobilizing financing.

The partnership will enhance cooperation in research and innovation for sustainable raw materials.

Greenland is eligible for the EU's Horizon program and Copernicus satellite data.

The agreement was signed by European Commission Executive Vice-President Maros Sefcovic and Greenland's Minister Naaja Nathanielsen.

The European Union aims to source 10% of its critical raw materials from mining, 15% from recycling, and 40% from processing by 2030.

Title:

Content: EU unveils plans to lead in green industrial revolution

By Philip Blenkinsop

BRUSSELS, March 16 (Reuters) - The European Commission presented one of the centrepieces of its strategy on Thursday to ensure its industry can compete with the United States and China in making clean tech products and accessing raw materials required for the green transition.

The EU executive's Net-Zero Industry Act and Critical Raw Materials Act, part of its Green Deal Industrial Plan, are designed to ensure the bloc is not just a frontrunner in cutting carbon emissions, but also ahead on the technology required to do so. There are signs it is lagging.

Global investment in the green transition is set to triple by 2030 from $1 trillion last year, President Ursula von der Leyen told the European Parliament on Wednesday, declaring "the race is on".

The EU executive set targets for the region to mine 10% of the critical raw materials such as lithium, cobalt and rare earths it consumes, with recycling adding a further 15%, and increase processing to 40% of its needs by 2030.

The supply of minerals vital for the green transition is a challenge, with China processing almost 90% of rare earths and 60% of lithium, a key element for batteries.

The Commission said no more than 65% of any key raw material should come from a single third country.

Russia's invasion of Ukraine has reinforced a lesson learned during the COVID-19 pandemic, namely that the EU cannot rely on a single supplier for essential materials.

The EU executive would recognise firm plans to mine or process raw materials as "strategic projects", which could benefit from streamlined permits and access to financing.

In trade, the EU would seek to expand its network of raw materials partnerships and free trade agreements, such as with Australia, Canada and Chile, and forge a global raw materials alliance.

The EU is also due to set a target of producing at least 40% of the clean tech products it needs by 2030, partly by streamlining the granting of permits for green projects and by fostering investment.

The Commission will propose simpler state aid schemes, allowing subsidies to promote green technology, with the possibility of offering tax breaks using existing EU funds. ($1 = 0.9488 euros) (Reporting by Philip Blenkinsop; Editing by Christina Fincher)

EU unveils plans to lead in green industrial revolution

The EU aims to cap its reliance on a single country for key raw materials at 65%.

The US estimates a $200 million cost to build new factories for separating rare earth minerals, an investment made by the Biden administration.

Title:

Content: RPT - ANALYSIS - US Faces Uphill Battle Against China's Rare-Earth Dominance

WASHINGTON (UrduPoint News / Sputnik - 23rd December, 2022) The US will be hard-pressed to break its rare earth dependence on China in the near future, a reliance the Biden administration has deemed a national security threat, due to steep regulatory hurdles along with a lack of capabilities and technologies, the types of which Beijing has been developing for more than three decades, experts told Sputnik.

China has a virtual monopoly on nearly all of the 17 rare earth elements (REEs) on the periodic table - critical minerals used in a wide-range of advanced applications, some of which are indispensable for developing green technology like electric vehicle motors. The US Geological Survey (USGS) listed sixteen of the REEs among 50 critical minerals - critical being defined as essential to US economic and national security and highly vulnerable to supply disruption.

The Biden administration has allocated or invested billions on developing critical mineral capabilities with demand for some metals expected to rise as much as 400% in the next two decades amid the green transition.

A US State Department official in early December said the US is looking at funding about a dozen mineral projects overseas to mine resources used in low-carbon technologies. The official said the United States will need an "exponential" amount of rare earths. The funding may come through a mineral security partnership program with about ten allies, including Australia, Canada, Japan, and the EU.

In terms of domestic production, the United States currently has one active rare-earth mine, owned and operated by MP Materials. However - the company must send 100% of the rare earth oxide (REO) mined to China for processing to deliver finished products.

Marina Zhang, an associate professor of research at the Australia-China Relations Institute, University of Technology Sydney, believes the Asian giant's edge will not be easy to overcome. Beijing, she added, has developed massive capacity and technical capabilities that have allowed China to control 90% of rare earth metallic production and 85% of refined production.

"China has clear structural advantages over its competitors, if any, for the next 10-15 years," Zhang told Sputnik. "Such advantages include lower mine and factory permit and licensing costs and timelines, and relatively lower labor and environmental costs, as well as advantages in talent and patent accumulations."

The US is particularly concerned with reliance on imports of Neodymium-Iron-Boron (NdFeB) permanent magnets used in critical products like electric vehicle (EV) motors and guided missile actuators. In September, the Commerce Department ruled that dependence on China for this product constituted a national security threat, but stopped short of imposing tariffs.

The Biden administration has invested at least $200 million to boost domestic production to close this permanent magnet gap. MP Materials, which secured $35 million of the funding, forecasted that it could produce the magnet - from cradle to grave - at a newly-built facility in Texas by the end of 2023.

Zhang, however, said even if MP Materials delivers NdFeB magnets, the US still lacks access and know-how to incorporate two key rare earth elements - terbium (Tb) and dysprosium (Dy) - which are necessary to ensure high heat resistance.

"Standard NdFeB magnets, without Tb or Dy, cannot be used in high-temperature applications such as EV drive motors, wind turbine motors, elevator motors, industrial robotics and advanced weapons systems," Zhang said. "No other country can make a high-temperature NdFeB magnet without Chinese inputs of separated Tb and Dy.

China is, so far, the only source for a guaranteed, uninterruptable supply of high-energy NdFeB magnets."

Zhang also pointed out that if the Americans close the capability gap, they at some point will again face a dearth of raw rare earths.

"Another hurdle: US regulatory and permitting process for opening a new mine typically exceeds a decade or more, which will limit MP Materials, for example, to explore new mine sites," Zhang said.

The MP Materials mine in California sits on top of a mere 2.1 million tons of rare earth reserves while China has at least 44 million tons. The company, in its most recent quarterly filing with the Securities and Exchange Commission (SEC), conceded there is a risk environmental regulations will impede development of resources.

Zhang also underscored that, as the US takes steps to enhance capabilities, China will not stand idly by.

"China will not stay still for its competitors to catch up," Zhang said. "Instead, it continues to use industrial policy to support both state-owned and private enterprises to strengthen its entire RE value chain, including preserving its RE reserves and developing technological capabilities in applications for high-end RE products, such as high-energy NdFeB magnets."

In addition to minerals, the US has fueled a trade war with China on the microchip front by blacklisting over 30 entities last week in a bid to deny them advanced equipment needed to make high-end semiconductors.

Professor Sunitha Raju of the Indian Institute of Foreign Trade in New Delhi told Sputnik that China could respond by indigenizing the entire microchip value chain and boosting its already-dominant position in the lower node chip domain. Moreover, a number of US tech giants might resist because they rely on China for a substantial portion of revenue, Raju added.

Raju also said China could "weaponize" its dominance in rare earth materials that are used for chip manufacturing. At that point, she warned, the US-Chinese trade confrontation could take an "ugly turn."

In addition to the economic and supply chain impact, Washington is also worried about more sinister threats posed by Chinese critical minerals - especially those that can be found on thousands of US weapons systems.

Earlier this year, the Pentagon halted delivery of F-35 jets upon discovery that a subcontractor used a Chinese-origin rare earth magnet on an engine part.

In October, the Defense Department issued a waiver allowing Lockheed Martin to resume deliveries of the jets while setting about looking for alternative sources. The Pentagon confirmed that the component was not transmitting sensitive information back to China and did not affect the safety or airworthiness of the fighter jets.

The crisis prompted lawmakers to introduce a bill in early December that calls for investing $1 billion to ensure the Pentagon secures "critical mineral independence" from China by 2027.

A member of the US Defense Policy board, Brookings Institution Senior Fellow Michael O'Hanlon, indicated that although a full blown trade war with China is not necessary, caution should be taken with respect to security-related materials.

"It's not crucial that we decouple from China on basic commodities. I just wouldn't want exclusive sourcing from China," O'Hanlon told Sputnik. "On components, however, we don't want Chinese input in case it's doctored."

China has repeatedly pushed back against US anti-trade policies and rhetoric, accusing Washington of economic coercion, unfair market segregation, and hindering cooperation.

MP Materials forecasts building a Texas facility to produce NdFeB magnets by the end of 2023.

The UK is building a £145 million rare earth mineral separation facility in East Yorkshire, set to be the 2nd largest outside China, and expected to start operating by the end of 2023.

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New layout of key minerals in the United Kingdom to build the second largest rare earth refinery in China and abroad
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The United Kingdom today stressed the importance of ensuring the supply chain of rare earth minerals, and is committed to diversifying its supply to avoid the influence of market leaders such as China.
Britain has launched a new key mining strategy to build rare earth refining facilities in the north of England.
Rare earth elements, including neodymium, propane, terbium and propane, are used to make magnets to power electric car engines, electric windows, and to operate offshore wind turbines and other high-tech devices, Reuters reported.
China currently accounts for 98% of global supply.
Europe and the United States have stepped up their efforts to reduce dependence on China and create a safe and independent supply chain for these critical minerals, lest the outbreak lead to business shutdowns and supply disruptions.
The UK says the Pensana facility will be the second largest magnet raw material refinery outside China and is expected to be operational by the end of 2023.
In a statement, Kwasi Kwarteng, the UK ’ s Secretary of State for Business, Energy and Industrial Strategy, said: “As geopolitical threats increase, the UK needs to act quickly to ensure the supply of rare earth minerals for our future industries. ”
“Most of these minerals originate in a few countries, making the UK vulnerable to market volatility.
We need to develop and strengthen our own supply chain to protect our future national security. ”
The £145 million facility in Saltend, East Yorkshire, is backed by the government ’ s Automotive Transformation Fund and is set to create 126 jobs.
Other key minerals include graphite, lithium and silicon, and China is also the largest supplier of these minerals.
In the new strategy, the UK said it would further develop and build the skills base of local labour, while supporting domestic production and working with “like-minded allies ” to diversify its supply chain.
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Lynas Corp has been awarded a $US120 million contract to build a heavy rare earths facility in Texas.

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Content: Once-in-a-generation opportunity for Australian resources is opening up

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Opinion

Once-in-a-generation opportunity for Australian resources is opening up

The recent surge in interest in critical minerals underscores how a combination of geopolitics and decarbonisation has opened a generational opportunity for Australia.

The nature of this opportunity was given a sharp focus last week when Anthony Albanese and US President Joe Biden met on the sidelines of the G-7 summit in Hiroshima and agreed a “compact” that could enable Australian companies to benefit from Biden’s signature policy, the $US370 billion ($565 billion) mislabelled Inflation Reduction Act.

That landmark legislation, enacted last year, contains massive incentives – direct subsidies and tax incentives – designed to accelerate the reduction of carbon emissions within the US and boost the supply of critical inputs to clean energy technologies, particularly electric vehicles and renewables, from both domestic suppliers and trusted allies.

Under the compact agreed at Hiroshima, both countries have agreed to establish a forum to coordinate their respective clean energy supply chain strategies, increase industrial collaboration and identify financial and non-financial obstacles to expanding the development of their critical minerals and clean energy industries.

Moreover, Biden pledged to ask the US congress to treat Australia’s critical minerals (and defence industries) as “domestic sources” for the purposes of the Inflation Reduction Act.

Whether or not Australian companies can get direct access to the massive pots of funding available through that legislation for their operations here, this would certainly open the possibility of a big increase in incentive-subsidised equity investment and debt funding by US companies and agencies in our economy.

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And just as significantly, it would help overcome the major disadvantage Australia has in processing minerals here -- our high costs and stringent environmental standards.

The Americans are prepared to trade higher-cost inputs for critical minerals to get supply that meets or improves their own labour and environmental standards.

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It also helps that Australia is a politically stable jurisdiction with a strong rule of law and a long alliance with the US.

The US is seeking similar relationships with other countries (some, like Indonesia, without the labour, environmental or legal standards of our economy) in an urgent effort to diversify its reliance, and that of the western world, on China for the strategic resources required to meet its carbon reduction ambitions.

China’s iron grip

China dominates the lithium, cobalt, graphite and rare earths industries that are fundamental to not just cleaner technologies, but 21st-century military and commercial applications, and is scrambling to secure that dominance through investments and access arrangements with the developing economies where much of the world’s undeveloped resources lie.

It doesn’t only have its foot on resources of many of the critical minerals, China dominates the entire value chain in many of them. It procures more than half of the metals needed for batteries like lithium, cobalt and manganese, and has near-total dominance of rare earths processing.

Australia, for instance, has more than half the world’s lithium resources, but more than 90 per cent of it is processed in China, which has been willing in the past to weaponise that dominance in a territorial dispute with Japan.

The European Union’s dependence on Russia for its core gas requirements before the Putin regime invaded Ukraine was a wake-up call for the US and others. It highlighted the vulnerabilities created by over-dependence on a third party for strategic resources, particularly a geopolitical rival.

An Australian company has already benefitted from the heightened tensions between the US and China as the US seeks to distance itself, albeit not decouple, from China, with Lynas Corp receiving a $US120 million contract from the US Department of Defence (DoD) ast year to build a heavy rare earths separation facility in Texas.

The Biden Administration has foreshadowed allowing the DoD to fund processing plants outside the US as part of the strategy envisaged in the compact with Australia to not just boost US domestic supply and processing of strategic minerals and metals, but to also supplement that with “friendshoring” of that supply and processing.

The Albanese government, which is close to issuing a paper outlining its own strategies for critical minerals, has made it clear that it sees the deeper relationship with the US as an opportunity to increase the domestic processing of Australian resources to extract more value and generate more employment.

Whether that would be the best use of corporate and national capital – it would probably require substantial financial incentives – is at least debatable. Australia is a world leader in mining and mining technologies, but has generally been uncompetitive in processing.

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Moreover, the highest returns on financial capital in the resources sector come from shipping the raw materials, not the processing, because of the capital intensity of moving up the value chain.

The exceptions have tended to be where a company’s social licence to exploit the resource hinged on value-adding or where, as with the rare earths refineries being developed in Western Australia, there are obstacles, geopolitical or environmental, to offshore processing.

It’s not just the US that offers an opportunity for Australian miners. Europe, like the US, has belatedly woken to its vulnerability because of its reliance on China for the key materials needed to meet its own environmental goals.

While it was initially alarmed by the Inflation Reduction Act – it was concerned the US would attract investment from its own companies and labelled the Act a form of protectionism – it has since been developing its own Critical Raw Materials Act to make it easier to gain permits and funding for new mining and processing projects, and has been engaged in amicable discussions with the US about a compact of its own.

Ticking the boxes

The shortages of key minerals and processing capacity outside China mean that none of the US, Europe or their key allies have the capacity to go it alone. They need a close alliance of aligned nations, preferably (but not necessarily exclusively) countries with similar environmental aspirations and labour standards to their own.

Australia ticks those boxes along with our vast resources, demonstrated expertise in exploiting them and trusted status as a reliable supplier with close and long-term relationships, not just with the US but with other key US allies such as Japan and South Korea.

Given the global shortfalls in supply, and even resources, of some key materials needed to meet the projected demand – the International Energy Agency has said the global supply of lithium will have to increase 42 times its current level by 2040 amid a broader quadrupling of the minerals needed for clean energy technologies – our resource sector will be critical to the aspirations of those advanced economies committed to decarbonisation.

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The closer relationships with nations that are distancing and attempting to de-risk themselves from their reliance on China will inevitably create some awkward moments.

Australian governments will have to decide how to treat not just new investment proposals, but existing Chinese investments in strategic minerals as China is making it clear, via its scramble to put it foot on resources in Africa and South America, that it won’t relinquish its dominance willingly.

The Americans and Europeans will be acutely aware that it will take years to wean themselves off their dependence on China for critical resources and that they are very vulnerable in the meantime.

The breakdown in trust and increase in friction between much of the West and China is creating some messy, delicate and potentially destructive pressure in what were, until relatively recently, reasonably strong and productive relationships. The “compact” between Australia and the US won’t ease those tensions.

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The US Department of Energy has given West Virginia University researchers $8 million to extract rare earth elements from acid mine drainage and coal waste.

Title:

Content: MORGANTOWN —West Virginia University researchers will continue to develop and advance their pioneering method to extract and separate rare earth elements and critical minerals from acid mine drainage and coal waste, courtesy of $8 million in new funding from the U.S. Department of Energy.

The grant, part of President Joe Biden’s Investing in America agenda, will lead to the design, construction and operation of a pre-commercial demonstration facility for separating and refining rare earth elements and critical minerals, according to Paul Ziemkiewicz, project lead and director of the West Virginia Water Research Institute at WVU.

Rare earth element technologies, which power everything from smartphones to the nation’s missile guidance system, could serve as a game changer for the environment and the domestic economy.

“Their work will not only help address acid mine drainage across West Virginia, but the eventual construction and operation of the pre-commercial demonstration facility will create employment in regions of West Virginia impacted by the United States’ transition away from fossil fuels,” said Vice President for Research Fred King. “We are grateful for the U.S. Department of Energy and our state and federal government leaders for helping WVU advance this novel approach to extracting rare earth elements and critical minerals from acid mine drainage that Paul and his team have developed.”

Ziemkiewicz’s team has selected several candidate sites in West Virginia for this facility and has initiated engagement with a broad range of stakeholders including state and local legislative bodies, environmental and community-based economic development groups, AMD-treatment operators, trade unions, technology providers and more.

“Using AMD as a feedstock has several community and environmental advantages,” said Ziemkiewicz, who has testified before the U.S. Senate on his research. “These are already permitted sites, which facilitates the move to production, and exploration is easy: just sample the site’s AMD discharges. Also, we’re not opening a new mine or disturbing a lot of ground, and we don’t produce radioactive byproducts like most conventional rare earth mines. Also, acid mine drainage provides the rare earths in a form that is easily recovered so no rock grinding nor intensive processing is needed. As a result, our carbon footprint is much less than a conventional mining and milling operation. Finally, our main byproduct is clean water since our process separately recovers the rare earths and all the other metals from AMD.”

The funding was announced as part of the Bipartisan Infrastructure Law to bring critical mineral supply chains to the U.S. and reduce reliance on competitors like China. The U.S. imports more than 80% of its rare earth elements and critical minerals.

Ziemkiewicz projects that the facility will produce between 5.4% and 7.3% of the global requirements for Terbium and Dysprosium, two of the most sought after and critical REEs. He and his colleagues have studied and refined the process since 2016 in collaboration with the Department of Energy.

“These previous efforts culminated in a technology package suitable for demonstration-scale deployment as well as an innovation ecosystem and research infrastructure, which will be leveraged for this project,” Ziemkiewicz said.

He added that over 60% of the rare earths in AMD are neodymium, praseodymium and the heavy REEs that are most utilized in green energy and defense technologies. That number far surpasses the 12% HREE produced at typical REE mines.

Ziemkiewicz’s work is already making an impact as his team has worked with the West Virginia Department of Environmental Protection to construct an AMD/REE pilot plant near Mount Storm. That facility can treat up to 500 gallons per minute of AMD from an adjacent coal property while producing nearly two tons per year of REEs and CMs in the form of mixed oxides. The Mount Storm site is online producing compliant discharge water and, as of Sept. 2022, the system began production of hydraulic preconcentrate.

“Unlike most academic research, our team has focused on developing large-scale, continuous operations that with this new funding can move the technology rapidly toward the market,” Ziemkiewicz said. “This has meant developing private and public sector partnerships with Rockwell Automation, L3Eng, SNF Chemicals, Solmax, Endress and Hauser as well as the West Virginia DEP. Without their technologies and real-world expertise, we’d still be working at the laboratory scale.”

The newly announced project includes ongoing team members Aaron Noble of Virginia Tech and Tom Larochelle of L3Eng. Battelle Memorial Institute will provide technology integration, market and facility construction skills.

“This award is a testament to the innovative research Paul and his team have broken ground on in recent years,” King said. “It’s also representative of the University’s collaborative approach to academic investigation and our commitment to WVU’s land-grant mission.”

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The US administration is investing $35 million in MP Materials to separate and process materials at its California facility.

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Content: President Joe Biden will meet Tuesday with California Gov. Gavin Newsom, administration officials and industry representatives to announce new investments in the domestic production of minerals and materials crucial to creating a wide array of technological devices, including computers, smartphones, batteries, household appliances and vehicles.

The investments, which are the latest step the administration is taking in unsnarling persistent supply chain challenges that have plagued Biden since he took office, come a year after he signed an executive action ordering a comprehensive review of supply chain vulnerabilities.

The President is expected to announce $35 million in funding awards to the Nevada-based mining company MP Materials from the Department of Defense's Industrial Base Analysis and Sustainment program to separate and process materials at a Mountain Pass, California, facility. Per an administration fact sheet shared with CNN, the investment will allow MP Materials to establish a full end-to-end domestic permanent magnet supply chain, creating more than 350 jobs by 2024 and upping the nation's competitive capacity with China, which is currently responsible for 87% of the global permanent magnet market.

In addition, Berkshire Hathaway Energy Renewables and Redwood Materials are expected to announce new investments in facilities to extract and extend, respectively, the life of lithium materials, which are crucial in the production of battery technology.

Energy Secretary Jennifer Granholm will also participate in Tuesday's announcement, where she's expected to tout $140 million in funding from the bipartisan infrastructure law to recover rare minerals from coal ash and other mine waste, a sustainability effort the administration projects will reduce the need for new mining while protecting manufacturing jobs in the coal sector.

The infrastructure law also directs $3 billion in funding for refining lithium, cobalt, nickel and graphite, and battery recycling facilities, per a White House fact sheet.

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Solvay plans to invest tens of millions of euros to upgrade its La Rochelle factory in France for wider rare earth separation.

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Content: WhatsNew2Day
Latest News And Breaking Headlines

Solvay plans rare earths push as EU seeks to break reliance on China

Belgian chemical group Solvay plans to create the second European site producing rare earths essential to the energy transition as the continent rushes to break China’s dominance over the hard-to-mine elements.

The company said Friday that its factory at La Rochelle in France would be upgraded to separate a wider range of the 17 rare earths with neodymium and praseodymium, which are crucial in the production of magnets for electric vehicles and wind turbines.

The decision to invest tens of millions of euros in the facility comes two days after EU leaders called for new legislation to tackle China’s grip on the supply chain for critical raw materials. The Asian country controls 80 percent of the global processing capacity of rare earth metals.

Disruption of gas supplies in the wake of Russia’s invasion of Ukraine has sharpened the minds of EU officials about the risks of relying on one country for materials needed for the transition to a low-carbon economy.

“Lithium and rare earths will soon become more important than oil and gas,” said EU Commissioner Thierry Breton this week. “Our demand for rare earths alone will have increased fivefold by 2030.”

The 78-year-old factory in La Rochelle, which supplies rare earths for the production of automotive catalysts and semiconductors, will help strengthen Europe’s autonomy over the rare earths supply chain.

Together with Neo Performance Materials, which has a separation site in Estonia, it will produce the rare earths needed for electric cars and wind turbines. The UK has a rare earth separation project under construction through London-listed Pensana.

“Rare earths are essential to ensure the green energy transition,” said Ilham Kadri, CEO of Solvay, who recently assisted a long-running dispute with an activist investor. “Our investments in the magnets value chain will help Europe power its new economy.”

However, the rare earth supply chain involves many steps, including converting separated rare earth oxides into metals and producing magnets that analysts say are needed to reduce Beijing’s control over the flow of critical materials and components.

“It’s a good step forward,” said David Merriman, director of rare earths research at Wood Mackenzie. “For automakers, there are a few stages that need to be completed in order to connect directly with their supply chain.”

According to a report by the European Raw Materials Alliance, Europe imports about 16,000 tons of rare earth permanent magnets from China every year.

Under the proposed EU Critical Raw Materials Act, licensing will be streamlined, funding will be allocated to strategic projects and strategic stockpiles of materials will be established.

The EU has been much slower to build resilience in its raw materials supply chain than countries like Japan, which financed Western’s largest rare earth producer Lynas after China unofficially banned exports of rare earths to the country a decade ago due to a geopolitical dispute.

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The EU relies on China for 80% of its rare earth metal processing.

EU demand for rare earths is expected to increase fivefold by 2030.

Iluka in Australia is building a rare earths refinery, set to open in 2025, at a cost of $675-800 million, aided by government grants.

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Content: Truth, Inspiration, Hope.

Govts Utilizing Mine Waste to Beat China on Green Energy Goals

100,000 tons of rare earths each year end up in waste from producing phosphoric acid alone
Victor resides in the Netherlands and writes about freedom and governmental and social changes to the democratic form of nations.
Published: April 10, 2023

Several mine waste refining projects have started worldwide in a longshot effort to meet the demand for the green energy revolution and beat market leader China along the way.

Sweden, South Africa, and Australia are among the countries that hope to wean off their dependency on China for their supply of rare earths, a market that is 90 percent dominated by Beijing

These mine waste by-products, in many cases, can be processed into substances vital for powering electric vehicles (EV) and wind turbines; however, the yield from these processes would hardly make a dent in satisfying the surging demand of a world that has set its sights on net-zero carbon emissions by 2040.

Sweden

One of those companies that took the challenge is Swedish state-owned iron ore miner LKAB, which has set out to extract phosphorus for fertilizer, fluorine, and gypsum in addition to rare earths from mining debris or by-products.

Material from an initial stage of iron ore processing, currently deposited in a tailings dam, Europe’s largest known deposit of rare earth oxides, will be retained and go through further treatment stages.

“We want to make sure we extract as much value as possible, and when we come to the critical minerals, we have those in our ores already,” said David Hognelid, LKAB’s chief strategy officer for unique products.

LKAB will be sending its material for separation to Norway’s REEtec, in which it is the biggest shareholder.

Commodity trader Mercuria also bought a stake in REEtec for a new division that targets metals needed for the energy transition.

“REEtec fits the narrative of building processing capacity for rare earths in the part of the supply chain where we think there’s a bottleneck,” said Guillaume de Dardel, head of energy transition metals at Mercuria.

“The company’s technology has a lower environmental footprint than the legacy solvent extraction process essentially used for rare earths separation in China.”

South Africa and Australia

In South Africa, Rainbow Minerals also plans to process waste stacks from years of phosphate mining.

Rainbow Minerals will employ a novel method based on ion chromatography, a technique widely used in pharmaceutical and other industries created by the American business K-Technologies.

The largest such project, however, is currently underway in Australia, where the manufacturer of mineral sands, Iluka, is preparing to process 1 million tons of stockpiled by-products that have been accumulating at its Eneabba site since the 1990s.

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It is constructing a rare earths refinery slated to open in 2025 that, together with the required infrastructure, is anticipated to cost between $675 million and $800 million, aided by government grants.

Low-hanging fruits

There are 16.2 million tons of unexploited rare earths in 325 mineral sands deposits worldwide, Australia’s RMIT University estimates. Meanwhile, the Idaho National Laboratory said 100,000 tons of rare earths each year end up in waste from producing phosphoric acid alone.

The projects mentioned above target output of over 10,000 tons of key elements neodymium and praseodymium (NdPr) oxide by 2027 by processing material from mineral sands, fertilizer, and iron ore operations, Reuters estimated based on figures from consultants Adamas Intelligence.

“These projects are the low-hanging fruit in the supply chain at the moment,” said Ryan Castilloux, managing director at Adamas.

But these low-hanging fruits only make up 8 percent of the expected demand for the two vital ores, essential for making permanent magnets to power EV and wind turbine motors.

“There’s more demand growth coming in the near to medium term than production, so there’s an opportunity for these readily accessible sources of supply,” Castilloux figured.

But however profitable the short-term prospects for Adamas and others may be, they will only be for a relatively short period. They can only serve to cut the expected deficit in the materials by half at most, Adamas and the Reuters analysis showed.

Reuters contributed to this article.

The global lithium supply must increase 42-fold by 2040 to meet demand, says the International Energy Agency.

Global demand for rare earths is driven by the goal of achieving net-zero carbon emissions by 2040.

The US and its allies aim to build a separate rare earth supply chain by 2027.

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Melbourne/Rio De Janeiro — Mining giant Brazil has big ambitions to build a rare earths industry as Western economies push to secure the metals needed for magnets used in green energy and defence and break China’s dominance of the supply chain.

Working to its advantage are low labour costs, clean energy, established regulations and proximity to end markets, including Latin America’s first magnet plant which would provide a ready buyer for the metals.

But low rare earths prices, technical challenges and nervous lenders pose challenges to the Latin American nation’s hopes to propel itself into the world’s top five rare earths producers.

The pace at which Brazil’s rare earths projects come together will be a test for how successful the West may be at building a new advanced industry almost from scratch to break China’s grip.

Brazil holds the world’s third-largest rare earth reserves. The country’s first rare earths mine, Serra Verde, started commercial production this year.

Output is set to grow, analysts, mining CEOs and investors say, supported by Western government incentives that are also accelerating a global rare earths refining and processing industry.

“Brazil as a source of potential rare earths is a very exciting proposition because there have been some very meaningful discoveries made in the past couple of years,” said Daniel Morgan of Barrenjoey investment bank in Sydney.

“I do think outside of China, Brazil’s projects are the most economic greenfield projects available.”

The US and its allies, almost entirely dependent on China for rare earths metals and magnets, set out to build a separate supply chain by 2027 after deliveries were disrupted during the Covid-19 pandemic early this decade.

Long haul

China produced 240,000 metric tonnes of rare earths last year, more than five times the next biggest producer, the US, according to US geological survey data. It processes about 90% of the global supply of rare earths into permanent magnets used in everything from wind turbines to electric vehicles and missiles.

For countries like Australia, Vietnam and Brazil looking to catch up, progress is slow. Serra Verde has taken 15 years to get into production. It is expected to produce 5,000 tonnes this year and could double output by 2030, its CEO said.

“Serra Verde and Brazil have significant competitive advantages that could underpin the development of a globally significant rare earths industry over the long term,” Serra Verde CEO Thras Moraitis told Reuters.

Those include attractive geology, access to hydropower, established regulations and a skilled workforce, he said.

“It is still a nascent sector which will require continued support to establish itself in a highly competitive market. Key processing technologies are controlled by a small number of players,” he said.

Brazil could have two or three more rare earths mines by 2030, potentially exceeding Australia’s annual output, said Reg Spencer, an analyst at broker Canaccord.

Basement prices

One major obstacle is a 70% slump in rare earths prices over the past two years that has made it difficult for companies to raise funds for mines and processing.

“Getting money at the moment is tough,” said CEO Nick Holthouse of Australian-listed developer Meteoric Resources.

Meteoric is targeting an investment decision in late 2025 for its Caldeira project in Brazil’s Minas Gerais state, which will produce light and heavy rare earths.

In March, the US Export-Import Bank (EXIM) expressed interest in providing Meteoric up to $250m for the project. The company also has a preliminary deal to supply rare earth oxides to a separation plant in Estonia run by Toronto-listed Neo Performance Materials.

Brazilian Rare Earths, too, is in the early stages of developing a large rare earths deposit in the country’s northeast, backed by Australia’s richest person, Gina Rinehart.

Its CEO, Bernardo Da Veiga, highlighted Brazil’s low operating costs as an advantage over rivals like Australia, where he said a truck driver at an iron ore mine would earn up to A$200,000 ($133,200) a year plus food and accommodation.

“That same truck driver in Brazil, doing the same job, earns like $15,000 a year and he rides his bike to work and brings his lunch. There’s just no comparison.”

Complexities

While labour is cheap, developers face technical hurdles. Unlike in China, many Western companies are still perfecting the complex processes for producing rare earth metals, a costly challenge that has stalled projects for years.

To spur developments, the Brazilian government launched a 1-billion reais ($194.53m) fund in February to finance strategic minerals projects, including rare earths.

It also wants to build an industry for transforming these minerals into alloys for batteries, wind turbines and electric motors, the ministry of mines and energy said in a statement.

The challenge is to stimulate production and build partnerships to promote element separation technologies and supply chain development, the ministry said. It is also looking into rare earths recycling.

Among companies talking to the government about recycling technology is Australia’s Ionic Rare Earths, which has a pilot recycling plant in Belfast and a tie up with Brazilian developer Viridis Mining and Minerals, its CEO Tim Harrison said.

Brazil is also building a magnet factory due to start operating later this year as a proof of concept, Flavio Roscoe, president of Minas Gerais’ state Federation of Industries said.

“Our objective is to be a developer, a multiplier of this technology,” Roscoe said.

“Brazil has the opportunity to be the world’s option to China.”

Reuters

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China produced 240,000 metric tonnes of rare earths last year, over five times the US output.

China processes around 90% of the world's rare earths.

The US and Europe's reliance on China for rare earth minerals makes them vulnerable to supply chain disruptions that could impact industries like renewable energy, electronics, and defense.