During an engaging interview at PDAC 2024 with Critical Minerals Institute (CMI) Co-Chairman Jack Lifton, Rahim Suleman, President, CEO, and Director of Neo Performance Materials Inc. (TSX: NEO), shed light on the company’s strategic endeavors and its unique positioning in the rare earth materials sector. Suleman emphasized Neo’s role as a pivotal player in the rare earth magnetics market, underlining the critical importance of these materials in driving the energy transition and their explosive demand growth. He highlighted Neo’s existing vertical integration in the rare earth magnet sector and its innovative dual supply chain strategy that provides a robust solution to the market’s over-reliance on China, which dominates the extraction, processing, and magnet production of rare earth materials. “We are the most vertically integrated rare earth magnetics company in the world,” Suleman remarked, illustrating Neo’s commitment to mitigating concentration risks and fostering resilience in the supply chain.

Suleman further detailed Neo’s significant investments in expanding its operational footprint, particularly mentioning the development of a sintered magnet facility in Estonia, which is poised to serve both the North American and European markets starting in 2025. This ambitious project, heralded as a landmark move to diversify the global rare earth magnet production landscape, underscores Neo’s proactive approach to addressing the critical shortage of rare earth permanent magnet manufacturing capacity outside China. With plans to extend its manufacturing capabilities to North America and ongoing support from the European Union, Neo is strategically positioning itself to meet the burgeoning demand for rare earth magnets essential for electric vehicles and other green technologies. “We’re in the process of investing in phase one… but we would immediately follow it with phase two and then immediately follow that and probably even concurrent to that do a large phase in North America as well,” Suleman shared, highlighting Neo’s comprehensive strategy to fulfill European and American EV Motor OEMs’ demand for domestic sourcing of rare earth magnets.

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About Neo Performance Materials Inc.

Neo manufactures the building blocks of many modern technologies that enhance efficiency and sustainability. Neo’s advanced industrial materials – magnetic powders and magnets, specialty chemicals, metals, and alloys – are critical to the performance of many everyday products and emerging technologies. Neo’s products help to deliver the technologies of tomorrow to consumers today. The business of Neo is organized along three segments: Magnequench, Chemicals & Oxides and Rare Metals.  Neo is headquartered in Toronto, Ontario, Canada; with corporate offices in Greenwood Village, Colorado, United States; Singapore; and Beijing, China. Neo has a global platform that includes ten manufacturing facilities located in Canada, China, Estonia, Germany, Thailand, the United Kingdom, and the United States, as well as one dedicated research and development centre in Singapore.

To learn more about Neo Performance Materials Inc., click here

Disclaimer: Neo Performance Materials Inc. is an advertorial member of InvestorNews Inc.

This interview, which was produced by InvestorNews Inc. (“InvestorNews”), does not contain, nor does it purport to contain, a summary of all material information concerning the Company, including important disclosure and risk factors associated with the Company, its business and an investment in its securities. InvestorNews offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This interview and any transcriptions or reproductions thereof (collectively, this “presentation”) does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer to subscribe for or purchase any securities in the Company. The information in this presentation is provided for informational purposes only and may be subject to updating, completion or revision, and except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any information herein. This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of the management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. This presentation should not be considered as the giving of investment advice by the Company or any of its directors, officers, agents, employees or advisors. Each person to whom this presentation is made available must make its own independent assessment of the Company after making such investigations and taking such advice as may be deemed necessary. Prospective investors are urged to review the Company’s profile on SedarPlus.ca and to carry out independent investigations in order to determine their interest in investing in the Company.

In this interview with Tracy Weslosky during PDAC 2024, Tom Drivas, CEO and Director of Appia Rare Earths & Uranium Corp. (CSE: API | OTCQX: APAAF) discussed the results from the maiden Mineral Resource Estimate for Appia’s PCH Ionic Adsorption Clay Project in Brazil. Announcing a significant 52.8 million tonnes of resource, Tom highlighted the presence of extremely high-grades of rare earths within this resource, showcasing some of the highest TREO (total rare earth oxide) grades globally.

Tom emphasized the project’s potential, stating, “We have only explored 1% of the total area… We have 40,000 hectares.” Tom also highlighted the project’s richness in magnet rare earths like neodymium and praseodymium, essential for producing permanent magnets in high demand. The addition of industry experts like Constantine Karayannopoulos, Jack Lifton and Don Hains, P. Geo to Appia’s Advisory Board underscores the project’s significance and potential.

Besides the project in Brazil, Appia is also advancing uranium exploration properties around the Athabasca Basin in Saskatchewan and has a significant uranium resource in Ontario at Elliot Lake. Notably, the company is also advancing its Alces Lake project in Saskatchewan, renowned for its high-grade critical rare earths in monazite.

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About Appia Rare Earths & Uranium Corp.

Appia is a publicly traded Canadian company in the rare earth element and uranium sectors. The Company is currently focusing on delineating high-grade critical rare earth elements and gallium on the Alces Lake property, as well as exploring for high-grade uranium in the prolific Athabasca Basin on its Otherside, Loranger, North Wollaston, and Eastside properties. The Company holds the surface rights to exploration for 94,982.39 hectares (234,706.59 acres) in Saskatchewan. The Company also has a 100% interest in 13,008 hectares (32,143 acres), with rare earth elements and uranium deposits over five mineralized zones in the Elliot Lake Camp, Ontario. Lastly, the Company holds the right to acquire up to a 70% interest in the PCH Project (See June 9^th, 2023 Press Release – Click HERE) which is 40,963.18 ha. in size and located within the Goiás State of Brazil. (See January 11^th, 2024 Press Release – Click HERE)

To learn more about Appia Rare Earths & Uranium Corp., click here

Disclaimer: Appia Rare Earths & Uranium Corp. is an advertorial member of InvestorNews Inc.

This interview, which was produced by InvestorNews Inc. (“InvestorNews”), does not contain, nor does it purport to contain, a summary of all material information concerning the Company, including important disclosure and risk factors associated with the Company, its business and an investment in its securities. InvestorNews offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This interview and any transcriptions or reproductions thereof (collectively, this “presentation”) does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer to subscribe for or purchase any securities in the Company. The information in this presentation is provided for informational purposes only and may be subject to updating, completion or revision, and except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any information herein. This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of the management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. This presentation should not be considered as the giving of investment advice by the Company or any of its directors, officers, agents, employees or advisors. Each person to whom this presentation is made available must make its own independent assessment of the Company after making such investigations and taking such advice as may be deemed necessary. Prospective investors are urged to review the Company’s profile on SedarPlus.ca and to carry out independent investigations in order to determine their interest in investing in the Company.

Welcome to the January 2024 Critical Minerals Institute (CMI) report, designed to keep you up to date on all the latest major news across the critical minerals markets. Here is the CMI List of Critical Minerals or visit the CMI Library.

Global macro view

January 2024 saw a slight rise in U.S. inflation reported from 3.1%pa in November to 3.4%pa in December 2023. This has led market commentators to suggest the proposed 2024 interest rate reductions may be pushed out to H2, 2024, or be smaller in nature.  

The next U.S. Fed rates announcement is due on January 31, 2024, and no changes in rates are expected. Year to date, as of January 21, 2024, the S&P 500 is up 2.04%. U.S. GDP looks set to slow in Q4, 2023 (announcement due 25 January 2024) with forecasts for 2% annualized growth, which would result in a 2023 GDP of ~2.7%. 2024 U.S. GDP is forecast to be ~2.2%. The U.S. consumer remains resilient with U.S. employment very strong.

China continues its property led slowdown with 2023 GDP recently reported at 5.2% annualized. China’s December new home prices fell at the fastest pace in almost 9 years. Despite this the Chinese Central Bank left rates unchanged, defying expectations for a 0.1% cut.

The Russia-Ukraine war continues as does the Hamas-Israel war which last month spread to include the U.S. and UK forces bombing Iran-backed Houthis over their attacks in the Red Sea. The Middle East is a hotbed ready to explode.   

Global plugin electric vehicle (“EV”) update

December 2023 saw the usual seasonal upswing in global plugin electric car sales reaching a record ~1.5 million. China led the way with a stellar result of 1.191 million units, up 46% YoY.

Global plugin electric car sales ended 2023 at 13.6 million units (~16% market share), for a growth rate of 31% YoY (a significant slowdown from the ~60% growth rate in 2022).

• Trend Investing forecast for 2024 is 17 million units (20% market share), for a growth rate of 25% YoY.
• BloombergNEF forecast for 2024 is 16.7 million units (~20% market share), for a growth rate of 21% YoY.

We are still at the very early stage of the EV boom.

In early January, news was released that a record 1.2 million EVs were sold in the U.S. in 2023, according to estimates from Kelley Blue Book. The report noted that U.S. market share reached 7.6% in 2023 and that 55% of EV sales were attributable to Tesla (NASDAQ: TSLA).

The UK announced that their Zero Emission Vehicle (ZEV) mandate to increase electric car sales has become law. Key rules include:

• “ZEV Mandate demands makers up share of electric car sales to 22% in 2024.
• Electric vehicles currently make up around just 18% of all registrations in the UK.
• Mandate thresholds rise annually to an 80% share in 2030 – and 100% by 2035.
• Failure to meet the ZEV mandate sales targets can result in huge fines for auto makers of £15,000 per model below the required threshold.”

EV battery news

The U.S. government continues to tighten the screws towards developing their own EV supply chain independent of Foreign Entities Of Concern (“FEOC”). On January 20 Bloomberg reported: “US to ban Pentagon battery purchases from China’s CATL, BYD”. The ban will commence from October 2027 and include 4 other Chinese battery makers (Envision Energy Ltd., EVE Energy Co., Gotion High Tech Co., and Hithium Energy Storage Technology Co).

Global critical minerals update

There is an enormous amount of doom and gloom surrounding the EV and battery metals sector as we commence 2024. A key theme in recent months has been very depressed prices for many of the critical minerals, especially those related to the EV segment. A combination of the slowing EV growth rate in 2023 from ~60% in 2022 to ~31% in 2023, combined with an excess of battery inventory from 2022 and new EV metals supply has left most EV metal markets in surplus with prices collapsing.

Lithium

China lithium carbonate spot prices were flat the past month, with the price now at CNY 95,500/t (USD 13,275/t). After an ~80% fall from the high, lithium prices appear to have finally stabilized. This is logical given that prices are now at or below the marginal cost of production, especially for the higher cost China lepidolite producers.

Industry participants have been calling for a price bottom in recent months, with China Futures Co. analyst, Zhang Weixin, forecasting lithium prices to bottom out between CNY 80- 90,000/t and average CNY 100,000/t in 2024.

The other key recent trend in the lithium sector has been several announcements from lithium producers either stopping production or reducing their expansion plans. Core Lithium (ASX: CXO) announced on January 5, 2024 it will temporarily suspend mining operations. Then on January 17, 2024, Albemarle Corporation (NYSE: ALB) announced “actions to preserve growth, reduce costs, and optimize cash flow”. This includes deferring plans to build a fourth lithium hydroxide processing train at their Kemerton LiOH facility.

The China lithium carbonate spot price has stabilized near the marginal cost of production

On the topic of when we might see some recovery in lithium prices. On January 19 Fastmarkets put out a report stating: “…We expect orders to start flowing upstream again either towards the end of the first quarter or early in the second quarter.” If this proves correct and EV demand remains solid, then we could expect some lithium price recovery late Q1, early Q2, 2024.

Fastmarkets reports China lithium inventory levels are now back to the pre-boom levels with ~3 months of supply (red line)

Magnet Rare Earths

Neodymium spot prices fell again the past month to CNY 505,500/t. Prices peaked in February 2022 at CNY 1,506,530 and have been trending lower ever since then.

As discussed in a recent InvestorNews article, the consensus of industry experts is for 2024 to be a consolidation year. The article states: “2024 should see a year of consolidation for the rare earths sector as some experts are telling me. Some forecasts are for NdPr supply deficit to begin as early as 2024; however, this will largely depend on China demand, the global economy, EV sales, and new NdPr supply hitting the market.”

One interesting news item that emerged in January was of Rainbow Rare Earths Limited (LSE: RBW) (“Rainbow”) and their Phalaborwa Project in South Africa. The key aspect being that the Project consists of gypsum waste piles that contain large quantities of the magnet rare earths. Rainbow CEO Bennett stated: “We’ve got no mining cost, no crushing, no milling, no flotation. I saw the advantages to lead to a low capital intensity and low operating cost environment project.” Rainbow targets first production for 2026.

Some analysts are forecasting deficits ahead for NdPr rare earths driven by strong EV and wind energy demand

Cobalt, Graphite, Nickel, Manganese and other critical minerals

Cobalt prices (currently at US$12.90/lb) were flat the past month and remain at very depressed levels. The cobalt market is suffering from excess cobalt supply from the DRC which combined with a global slowdown in demand has led to cobalt prices dropping by almost 2/3 since their April 2022 peak. With LFP batteries gaining in popularity (no cobalt required) and a weak global consumer electronics market, there appears to be no short term turnaround for cobalt. Leading cobalt producer Glencore PLC (LSE: GLEN | OTC: GLCNF) has been stockpiling their excess material. At current prices, there is limited incentive for western producers to expand or enter the market.

Cobalt has lost two-thirds of its value since a recent peak in 2022

Flake graphite prices remain very weak with prices near the marginal cost of production and down ~2% over the past month.

A January 2024 Bloomberg report noted that natural flake graphite shipments slumped 91% in December from November 2023. Of course, sales surged prior to the Chinese export license permits being implemented in December 2023. December exports were 3,973 tons compared to the past monthly average of ~17,000t, so still a very significant fall.

Despite the spate of recent bad news, graphite is one of the EV metals with the largest demand profiles ahead this decade. Several groups are forecasting deficits ahead this decade starting from 2024/25 for the various types of graphite including flake, spherical, and synthetic. You can read more on the graphite outlook here.

Nickel prices fell again last month to USD 15,799/t. The 1 year outlook for nickel remains poor due to oversupply concerns from Indonesia. As a result of low nickel prices we saw the collapse of Panoramic Resources (ASX: PAN) in December and then on January 22, 2024, it was reported that BHP Group (ASX: BHP | NYSE: BHP) plans “to put parts of Kambalda nickel concentrator in Australia on care and maintenance” from mid-2024. This was caused by Wyloo Metals, which supplies ore to the plant, announcing a pause in mining operations due to low nickel prices.

Manganese prices were flat the past month and are now at CNY 29.25/MTU.

Uranium prices have been the exception to the rule the past year as they continue to rise, now at US$106/lb.

Uranium 5 year price chart

Conclusion

The biggest trend that looks to be emerging in Q1, 2024 for the EV metals sector is a negative supply response from producers. Producers are cutting CapEx, scaling back expansion, and in some cases reducing or stopping production. Expect to see a lot more of this in H1, 2024.

They say “the cure for low prices is low prices”. Well that’s exactly where we are now in the cycle. The next 3-6 months is likely to see the washout phase, where many miners collapse, reduce production or put their mine into care and maintenance. There is no point running a mine and selling a limited resource and making no profit. I will end with three well known sayings:

• “Bear markets are the author of bull markets”
• “Bull markets are born on pessimism, grown on skepticism, mature on optimism, and die on euphoria.”
• “You have suffered through the pain, now hang around for the gain.”

Given the EV metals markets have been in a bear market for the past 15-18 months the end is near, and we should expect some recovery during H2, 2024, assuming EV sales can grow at a reasonable rate.

Welcome to the latest Technology Metals Report (TMR) where we highlight the Top 10 news stories that members of the Critical Minerals Institute (CMI) have forwarded to us over the last 2-weeks.

Key highlights in this Technology Metals Report include significant developments such as Rainbow Rare Earths Limited’s discovery in South Africa, China’s unveiling of the new heavy rare earth mineral Bayanoboite-Y, and the Australian Nuclear Science and Technology Organisation (ANSTO)’s $13.9 million funding for critical minerals research. The edition also spotlights the “CMI Masterclass: The Middle East’s Escalating Investment Interest in Africa’s Critical Minerals,” focusing on the strategic importance of Middle Eastern investments in Africa’s mineral sector. Moreover, the increasing global interest in Saudi Arabia’s mineral resources, highlighted at a recent mining conference in Riyadh, illustrates the geopolitical and economic shifts in the critical minerals landscape.

The 10 stories selected for this edition of the TMR, with source links to source stories for this fast-paced sector, are listed chronologically for your ease and review. These narratives highlight the dynamic shifts, strategic innovations, and geopolitical complexities shaping the critical minerals landscape, reflecting the increasing significance of these resources in technology, green energy solutions, and global market dynamics.

The Rare Earths Mine That Won’t Need a Single Shovel (January 17, 2024, Source) — George Bennett, a South African mining veteran, discovered a unique opportunity in two gypsum waste piles near the Mozambique border, which contain high concentrations of rare-earth minerals crucial for wind turbines and electric vehicles. This finding is notable due to the rarity of economically viable rare-earth concentrations, particularly above ground, and China’s dominance in the rare-earth market. Rainbow Rare Earths Limited (LSE: RBW), Bennett’s company, projects over $1 billion in net value from these piles, with no traditional mining costs. The project is set to start in 2026 and offers a competitive edge due to its low production costs and innovative processing methods. Despite market volatility, Rainbow’s unique approach positions it well in the growing demand for rare-earth oxides, essential for the energy transition. Referral, CMI Director, Russell Fryer

China discovers new heavy rare earth mineral (January 16, 2024, Source) — Chinese scientists have discovered a new heavy rare earth mineral named Bayanoboite-Y at the Bayan Obo Rare Earth Mine in Baotou, North China’s Inner Mongolia Autonomous Region. This mineral, unique in its chemical composition and crystal structure, contains significant heavy rare earth elements like yttrium, dysprosium, gadolinium, erbium, and lutetium. It marks the world’s first fluorocarbonate heavy rare earth new mineral discovery, signifying a major breakthrough in understanding the occurrence and evolution of heavy rare earth minerals. The Bayan Obo mine, crucial to China’s rare-earth reserves, has discovered 18 new minerals since 1959. China, leading globally in rare earth production, plans to expand its rare-earth industry, leveraging recent advancements in mining efficiency and recovery rates. Referral, CMI Director, Alastair Neill

China’s rare earth exports rise on demand from EV, high-tech sectors (January 12, 2024, Source) — In 2023, China’s rare earth exports rose by 7.3% to 52,307 metric tons, fueled by growing demand from the electric vehicle and high-tech sectors. As the world’s leading producer, China’s rare earths are essential in various applications, including new energy vehicles, wind power, and military equipment. Despite international tensions over critical mineral control and China’s export restrictions on certain key materials, demand continued to outstrip supply, affecting prices. However, fears of supply shortages, especially after a mining suspension in Myanmar, drove prices up. While China increased its mining quotas, its rare earth exports dropped by 18.24% in December 2023 compared to the previous month. Meanwhile, China’s rare earth imports surged by 45% in the last month, reflecting a 44.8% annual increase. Referral, CMI Director, Alastair Neill

Will the magnet rare earths prices rise in 2024? (January 12, 2024, Source) — The magnetic rare earths sector, impacted by falling prices in 2022 and 2023 due to reduced global EV demand, is examined with a focus on Lynas Rare Earths Ltd. (ASX: LYC) and MP Materials Corp. (NYSE: MP). The downturn is linked to a slow global economy and EV sales decline, but a recovery is anticipated. Lynas has launched production at Australia’s Kalgoorlie Rare Earths Processing Facility, signaling progress. MP Materials is expanding in the USA with a focus on NdPr oxide and NdFeB magnets production. The sector’s future, potentially seeing a NdPr supply deficit as early as 2024, hinges on global economic recovery and EV market resurgence. These developments are crucial for establishing a Western-dominated rare earths and magnets industry within this decade.

ANSTO welcomes $13.9M critical minerals funding (January 12, 2024, Source) — The Australian Nuclear Science and Technology Organisation (ANSTO) has been allocated $13.9 million under the Australian Critical Minerals Research and Development Hub, as part of a wider $22 million funding package. This investment, announced by Minister Madeleine King, will support ANSTO’s research into rare earth elements, focusing on the discovery, extraction, and processing from clay-hosted and ionic adsorption deposits. Led by CEO Shaun Jenkinson, the project aims to enhance Australia’s standing in the global rare earth market, develop specific mineral processing techniques, and improve environmental outcomes. Collaborating with Geoscience Australia and CSIRO, ANSTO’s two-year project aligns with the national strategy for critical minerals, emphasizing their importance in green technologies and the pursuit of net zero emissions. Referral, CMI Co-Chairman Jack Lifton

Hunt for Critical Minerals Draws World Powers to Saudi Arabia (January 12, 2024, Source) — The global quest for critical minerals has brought world powers like the U.S., China, and Russia to Saudi Arabia, which is emerging as a key player in the mining sector. The kingdom, traditionally known for its oil wealth, is investing heavily in mining to diversify its economy and has positioned itself as a central hub in a “super region” rich in natural resources. This was highlighted at a recent mining conference in Riyadh, attended by international government and industry leaders. Saudi Arabia aims to leverage its strategic geographical position and vast untapped mineral wealth, recently re-estimated at $2.5 trillion, to attract global investments and partnerships. The conference saw significant participation, indicating a growing interest in Saudi Arabia’s mining potential and its efforts to establish stronger diplomatic and economic ties with various countries. Deals worth approximately $20 billion were expected, with the U.S. and Russia signing memorandums of understanding. This shift towards mining is part of Saudi Arabia’s broader Vision 2030 strategy to reduce oil dependency and cultivate new economic sectors. Referral, CMI Co-Chairman Jack Lifton

Why Core Lithium’s mine closure was just the tip of the iceberg (January 11, 2024, Source) — Core Lithium’s closure of its Grants mine reflects a broader crisis in the Australian mining sector, particularly impacting small-to-mid cap companies unnoticed for the last 12-24 months. Several mines, including First Quantum Minerals Ltd. (TSX: FM) and POSCO’s Ravensthorpe, Arcadian Lithium PLC’s (NYSE: ALTM | ASX: LTM) Mt Cattlin, and others, face similar risks due to declining battery metal prices and operational challenges. The cobalt market, for instance, saw dramatic price fluctuations, impacting projects like Jervois Global Limited’s (ASX: JRV | TSXV: JRV | OTCQB: JRVMF) Idaho Cobalt Project. Other companies, such as Hastings Technology Metals Ltd. (ASX: HAS) and Panoramic Resources Limited (ASX: PAN), have had to alter strategies due to various challenges. This trend contrasts with larger, stable companies like Pilbara Minerals and underscores the need for revised economic studies and strategies in a volatile market. Referral, CMI Director, Peter Clausi

Serra Verde Enters Commercial Production (January 11, 2024, Source) — Serra Verde has commenced commercial production of Mixed Rare Earth Concentrate from its Pela Ema deposit in Brazil. Targeting 5,000 tonnes annually, these rare earths are crucial for electric vehicle motors and wind turbines. The company has secured customer acceptance and offtake agreements, with plans to double production by 2030. Emphasizing sustainability, Serra Verde’s operations use eco-friendly methods and renewable energy. CEO Thras Moraitis highlights the company’s role in producing critical rare earths, supporting sustainable energy transitions. Ricardo Grossi, COO, emphasizes Brazil’s emerging role in rare earth production and the company’s commitment to sustainable practices and stakeholder benefits. Referral, CMI Director, Alastair Neill

Rare Earth Oxide separation work commences at the back-end pilot plant in Florida, U.S. (January 11, 2024, Source) — Rainbow Rare Earths Limited (LSE: RBW) has initiated the separation of rare earth oxides at their pilot plant in Florida, U.S., using a continuous ion exchange and chromatography process developed by K-Technologies. This innovative approach, replacing traditional solvent extraction, is set to produce critical rare earths like neodymium, praseodymium, dysprosium, and terbium, crucial for the green economy. The Johannesburg pilot plant has prepared and shipped mixed rare earth carbonate to Florida for separation, enhancing the process by producing a cerium-depleted version for more efficient separation. Despite some delays, the project continues to make significant advancements in optimizing the process for commercial scale. The Phalaborwa project, a key part of Rainbow’s strategy, aims to establish an independent, ethical supply chain for rare earth elements, essential in various advanced technologies and green energy solutions. Referral, CMI Director, Alastair Neill

CMI Masterclass: The Middle East’s Escalating Investment Interest in Africa’s Critical Minerals (January 10, 2024, Source) — The “CMI Masterclass: The Middle East’s Escalating Investment Interest in Africa’s Critical Minerals,” led by Tracy Weslosky of the Critical Minerals Institute, discussed the rising Middle Eastern investment in Africa’s mineral sector. Experts, including Melissa Sanderson, Jack Lifton, and Russell Fryer, explored its strategic significance for the global market and supply chain. The impact on American firms and competition with China in Africa were key topics. The session also examined the broader implications of such investments, as illustrated by Robert Friedland’s company’s Middle Eastern funding. The panel weighed the financial benefits against long-term strategic, economic, and geopolitical challenges, offering insight into the complex dynamics of global critical minerals investment.

Defense Metals Signs MOU with Ucore to Ship Rare Earth Carbonate to RapidSX™ Facility in Ontario (January 9, 2024, Source) — Defense Metals Corp. (TSXV: DEFN | OTCQB: DFMTF) and Ucore Rare Metals Inc. (TSXV: UCU | OTCQX: UURAF) have agreed on a Memorandum of Understanding (MOU) to forge a North American rare earth element (REE) supply chain. Under this MOU, Defense Metals will send a rare earth carbonate sample from its Wicheeda REE project in British Columbia to Ucore’s RapidSX™ facility in Ontario for processing. This initiative is a critical step in establishing a Western REE supply chain, responding to the growing demand for REE feedstock. The collaboration, featuring Defense Metals’ strategically located Wicheeda project and Ucore’s innovative RapidSX™ technology, aims to evaluate joint venture possibilities. This partnership aligns with Ucore’s broader strategy, including the development of a commercial REE processing plant in Louisiana, supported by the US Department of Defense and the Canadian Government.

Investor.News Critical Minerals Media Coverage:

• January 12, 2024 – Will the magnet rare earths prices rise in 2024? https://bit.ly/48Q1C6f
• January 9, 2024 – Defense Metals Signs MOU with Ucore to Ship Rare Earth Carbonate to RapidSX™ Facility in Ontario https://bit.ly/4aIQH05
• January 7, 2024 – Unveiling Hallgarten & Company’s Latest Insight: Model Resources Portfolio: Peak Climate Hysteria https://bit.ly/48raH5E

Investor.News Critical Minerals Videos:

• January 16, 2024 – Jeff Killeen on PDAC 2024: Shaping the Future of Critical Minerals and Mining https://bit.ly/3TYprop
• January 10, 2024 – CMI Masterclass: The Middle East’s Escalating Investment Interest in Africa’s Critical Minerals https://bit.ly/3HnUQZL

Critical Minerals IN8.Pro Member News Releases:

• January 19, 2024 – Power Nickel Commences 2024 Drill Program https://bit.ly/3vF8yot
• January 19, 2024 – Zentek Announces Eric Wallman Appointed as Chairman of the Board https://bit.ly/3u2y0nx
• January 17, 2024 – Defense Metals Announces McLeod Lake Indian Band Co-Design Agreement and Partnership Investment https://bit.ly/48UduUX
• January 16, 2024 – Fathom Announces Commencement of Exploration at Albert Lake Project and Selection for Participation at AME Roundup Core Shack https://bit.ly/3tJGujq
• January 16, 2024 – Appia Reports 92,758 ppm (9.3%) TREO, 13,798 ppm MREO (1.38%) and 2,241 (.24%) ppm HREO over 2m Within the Total Weighted Average of 38,655 ppm (3.87%) TREO, 6,869 ppm (.69%) MREO, and 1,380 ppm (.14%) HREO Across 24m (EOH) Following the Reanalysis of Over-Limit Assay Results from PCH-RC-063 at the PCH Ionic Adsorption Clay Project in Goias, Brazil https://bit.ly/48MrNuQ
• January 16, 2024 – F3 Announces Intention to Spin-Out F4 Uranium Corp. https://bit.ly/3Hm37NV
• January 15, 2024 – Panther Metals PLC – Fulcrum Metals: Update on Saskatchewan Uranium Projects https://bit.ly/423pmlh
• January 15, 2024 – Appia Announces Significant Geochemical Critical REE Assay Results at Alces Lake Project, Saskatchewan, Canada https://bit.ly/3HlFLbc
• January 12, 2024 – F3 Grants Options https://bit.ly/3vCzYvi
• January 12, 2024 – Ucore Invited to Present at National Defense Industry Association Event https://bit.ly/3TZ7giq
• January 11, 2024 – Panther Metals PLC: Graphite Discovery Grows Significantly at Obonga https://bit.ly/3SeTjvc
• January 11, 2024 – Ucore Makes Announcement Regarding Convertible Debentures https://bit.ly/4aQ3de5
• January 11, 2024 – Appia Receives Approval for 12 Additional Claim Blocks at Its PCH Rare Earths Ionic Adsorption Clay Project, Goias, Brazil https://bit.ly/3O0yzFc
• January 11, 2024 – Nano One Announces Carlo Valente as CFO https://bit.ly/3RSkpaf
• January 9, 2024 – Auxico Announces Results of a 2023 Sampling Campaign on the Minastyc Property https://bit.ly/47w158C
• January 9, 2024 – Critical Metals PLC Notice of AGM / Board Changes and Extension of Warrant Term https://bit.ly/3TSV2rB
• January 9, 2024 – Imperial Welcomes Guy Bourassa as CEO New Appointment Adds Depth to the Management Team https://bit.ly/48r6C1l
• January 9, 2024 – Power Nickel Raises $2,180,000, Outlines 2024 Plans https://bit.ly/41Pr4qe
• January 9, 2024 – Defense Metals to Ship Wicheeda Mixed Rare Earth Carbonate Sample to Ucore Rare Metals Inc. https://bit.ly/3RNhWhn
• January 8, 2024 – Sage Potash Secures Permit Approvals for Exploration Program at Sage Plain Potash Project https://bit.ly/3H9x9En
• January 8, 2024 – F3 Mobilizes to Drill A1 and B1 at PLN https://bit.ly/3TPP0Yw
• January 8, 2024 – Critical Metals PLC Placing https://bit.ly/3NPxiRm

Today we take a look at the magnetic rare earths sector and two leading rare earth companies and what we can expect in 2024 and beyond.

The magnet rare earths prices have fallen in 2022 and 2023

The magnet rare earths sector was hit hard in 2023 with China’s Neodymium (Nd), Praseodymium (Pr), and Dysprosium (Dy) prices falling as the global economy and EV demand slowed.

Neodymium prices came crashing down in 2022 and 2023 as demand slowed after the 2021 growth rate boom in EV sales – Now at CNY 530,000/t

Source: Trading Economics

Global plugin electric car sales grew by 108% in 2021 causing a huge spike in EV metal prices. Then in 2022, the growth rate slowed to 56% at a time when supply of most EV metals surged. Finally in 2023, the growth rate slowed further to an estimated 28%, resulting in further price decline for the magnet metals such as neodymium.

Demand for the magnet rare earths in electric motors is driven by multiple sources with electric vehicle sales being a key driver. (90% of EV motors use rare earth magnets)

Source: MP Materials company presentation

Will the magnet rare earths prices rise in 2024?

The answer to this question will largely depend on recovery in China and the global economy driving increased demand for EVs, wind turbines, and other magnets used in various industrial applications. Given the most recent trend globally has been towards future interest rate decreases (notably in the USA and China), it bodes well for a recovering consumer and hence demand. This may take a good part of 2024 to flow through with excess inventories across many sectors still needing to be worked off. If we get a strong pickup in EV demand (>40% YoY increase) in 2024, then the magnet rare earths sector woes could soon disappear.

China’s December 2023 EV sales give some hope as they jumped to a record 945,000 units, achieving a superb 47% YoY growth rate.

Lynas Rare Earths Ltd. (ASX: LYC) (“Lynas”) update

The big recent Lynas news (announced December 7, 2023) is that the first feed of material from the Mt Weld Mine has been introduced into the new Kalgoorlie Rare Earths Processing Facility in Western Australia, leading to first production and ramp-up of the Facility. A great achievement for Lynas, especially given that the Kalgoorlie Rare Earths Processing Facility is Australia’s first value-added rare earths processing facility. Lynas stated:

The Lynas Malaysia plant is currently shutdown as works to increase downstream processing capacity are completed. Production will recommence in January 2024. Mixed Rare Earth Carbonate (MREC) from the Kalgoorlie Rare Earth Processing Facility will be progressively introduced to the Lynas Malaysia plant commencing late in the March quarter and increasing as the controlled ramp up of the Kalgoorlie facility is progressed.…“

Once their expansions are completed, Lynas intend to increase their production capacity to 10,500tpa NdPr (Neodymium-Praseodymium). Lynas produced 6,142t of NdPr in FY 2023.

2024 will see the Mt Weld Mine expansion and further work on Lynas’ US Rare Earths Processing Facility Project targeted to be operational by July 2025 – June 2026.

Lynas is expanding its rare earths mining and processing capabilities through to 2025/26

Source: Lynas company presentation

MP Materials Corp. (NYSE: MP) (“MP Materials”) update

MP Materials owns and operates the Mountain Pass Rare Earth Mine and Processing Facility in California, USA. In the past MP Materials had to ship their concentrate to China for processing; however, they have a target to bring this back to the USA.

Their target is to grow their mine output by 50% over the next four years and to build separation capacity in the USA with annual production of 6,000 tpa NdPr oxide. The third stage of their plan is to build a greenfield production facility in Texas targeting ~1,000tpa of finished NdFeB (Neodymium Iron Boron) magnets. They already have General Motors (NYSE: GM) as a foundational customer.

MP Materials is working towards Stage II and Stage III of their plan to bring rare earths processing and magnets production to the USA

Source: MP Materials company presentation

Closing remarks

2024 should see a year of consolidation for the rare earths sector as some experts are telling me. Some forecasts are for NdPr supply deficit to begin as early as 2024; however, this will largely depend on China demand, the global economy, EV sales, and new NdPr supply hitting the market.

The two Western magnet rare earths leaders Lynas and MP Materials (and some other key players) are progressing their plans to further build a western supply chain and should be largely complete within the next 2-4 years if it goes to plan. This all supports the building of an end-to-end Western rare earths and magnets sector this decade. Stay tuned.

Tier one mining projects that can be advanced rapidly towards production in a friendly location are typically well rewarded by the stock market. We saw this recently in the lithium space with the success of Sigma Lithium Corporation (NASDAQ: SGML | TSXV: SGML) in Brazil. Today’s company is in a similar location in Brazil and has a potential tier-one rare earths project. The market has recognized this with the stock price up over 21x in the past 15 months.

Meteoric Resources (ASX: MEI) stock price chart showing a rise from A$0.012 to A$0.262 in 15 months

Source: Yahoo Finance

Meteoric Resources NL

Meteoric Resources NL (ASX: MEI) state that they have “the world’s highest grade ionic adsorption clay REE deposit”. Their potential tier-one Caldeira Project is located in the Minas Gerais State of Brazil.

The Caldeira Project drilling has achieved strong rare earth element (“REE”) grades over wide continuous intercepts from surface. The Project remains open at depth with very significant potential exploration upside.

Meteoric Resources state:

“At Caldeira, REE mineralisation commences from surface. The average drill depth used in the MRE is 6.9m and 85% of all holes finish in TREO grades above 1,000 ppm – the Caldeira deposit remains completely open at depth.“

Another positive is that the Capo Do Mel Prospect has a very high-grade portion which would be amenable for a high-grade starter pit.

The Caldeira Project in Minas Gerais, Brazil – Capo Do Mel Prospect showing strong drill results from near surface + location map

Source: Meteoric Resources company presentation

The Caldeira Project has a Maiden JORC Mineral Resource Estimate (“MRE”) of 409Mt @ 2,626 ppm TREO Inferred at a 1000ppm cut off; or at a 2000ppm TREO cut-off, the MRE is 271Mt @ 3,146ppm TREO. That makes it a large size and good grade ionic clay rare earths resource.

The TREO identified across the Caldeira Project represents an enriched basket of both light and heavy rare earth elements. Importantly it contains several valuable magnet rare earths including Neodymium (“Nd”), Praseodymium (“Pr”), and Dysprosium (“Dy”).

The Caldeira Project Maiden Inferred Resource estimate showing the magnet rare earths including Nd, Pr, and Dy

Source: Meteoric Resources investor presentation

Project metallurgical test work, permitting, access, and infrastructure

Metallurgical test work has produced a 25.5% magnet rare earth element concentrate. Furthermore, test work to date has achieved excellent recoveries including: Nd and Pr above 70%, Tb 60-70%, and Dy 50-60%.

To help fast-track development (including permitting) Meteoric Resources has entered into a non-binding Cooperation Agreement with the State Economic Department (Invest Minas) and the State Government of Minas Gerais.

The focus for an initial rare earth element mining operations and processing facility is on the southern licenses of Figueira, Capaodo Mel, and Soberbo.

The proposed Project plant site location has all-weather road access and access to power and water abstraction points.

Catalysts and next steps for Meteoric Resources

Near-term catalysts include further drilling results and an updated resource estimate with infill drilling to improve the Resource from Inferred to M&I. Economic studies including a Scoping Study (H1, 2024) and then a Feasibility Study (mid-2025) to follow. Concurrent work on an environmental impact study and permitting will also be occurring in 2024 and 2025 (details here on page 15). There will also be engineering and other work to develop a ~5Mtpa processing facility.

Closing remarks

Meteoric Resources is still in the relatively early stages but already has a potential tier-one global rare earths ionic clay resource suitable to a simple open pit operation. Being in Minas Gerais Brazil the Project has every chance to move forward at rapid speed. The processing side for the Project appears to be a simple flow sheet with no need for drilling/blasting, no waste dumps, and no tailings required.

Meteoric Resources trades on a market cap of A$521 million with the stock having had a ‘meteoric’ rise the past 15 months (up over 21x). One to watch closely in 2024.

Welcome to the December 2023 Critical Minerals Institute (“CMI”) report, designed to keep you up to date on all the latest major news across the critical minerals markets. Here is the CMI List of Critical Minerals or click here to visit the CMI Library.

Global macro view

December 2023 saw a further fall in U.S. inflation from 3.2%pa in October to 3.1%pa in November. As expected the U.S. Fed left interest rates unchanged at their December meeting. Even more significant was the Fed indicated that there are potentially ‘3 interest rate cuts coming’ in 2024. This was an early Christmas present for U.S. equity markets which continued their recent rally. Year to date, as of December 26, 2023, the S&P 500 is up 25.75% and the NASDAQ is up an amazing 43.25%. Of course, this follows heavy falls in 2022.

In late December China signaled a possible early 2024 interest rate cut when they reduced bank deposit rates. As a result China 30 year government bond yields hit their lowest level since 2005. All of this recent support for China’s economy and property market looks likely to set up a potential China recovery story in 2024. If China starts to recover in 2024 it would be a positive for commodity markets including the critical minerals.

The Russia-Ukraine war drags on through the European winter. There are some very early signs that both sides may be willing to end the war in 2024. We will see. Meanwhile, the Hamas-Israel war has been contained for now. We can only hope for peace in 2024.

Global plugin electric vehicle (“EV”) update

Global plugin electric car sales were 1,279,000 in October 2023 (the second-best month ever), up 37% YoY. November global sales reached 1.4 million. December should be even better. CPCA expects China’s NEV (New Energy Vehicle) retail sales in December 2023 to reach a record 940,000 units (41.4% market share), up 46.6% YoY. That should mean December global EV sales will be around 1.5 million.

This means that 2023 global plugin electric car sales should end up close to 13.6 million (~17% market share), for a growth rate of ~29% YoY (a significant slowdown from the 56% growth rate in 2022).

In other EV related news, in December Germany announced an abrupt ending to their EV subsidy. The subsidy was originally intended to apply until the end of 2024.

We also heard news that the U.S. is considering raising tariffs on Chinese EVs and Chinese solar products. The White House plans to complete a tariff review in early 2024. Chinese EVs entering the USA already have a 25% tariff. This follows the EU’s probe into China subsidies for EVs. All of this has come about due to the fact that about 60% of all global plugin EV sales are in China and the fact that China completely dominates the EV market and EV supply chain. This is now leading to a flood of compelling Chinese electric cars being exported to global markets where Western manufacturers (excluding Tesla Inc. (NASDAQ: TSLA)) are struggling to compete with China.

Finally, in December it was announced that Canada will require all new cars and trucks to be zero-emissions vehicles by 2035. The Canadian government stated: “The Standard will ensure that Canada can achieve a national target of 100 percent zero-emission vehicle sales by 2035. Interim targets of at least 20 percent of all sales by 2026, and at least 60 percent by 2030.”

Global critical minerals update

In December we got a key U.S. political announcement that will impact EV sales and critical minerals demand in 2024 and beyond.

U.S. Foreign Entity of Concern (“FEOC”) proposal

The U.S. DoE releases proposed interpretive guidance on Foreign Entity of Concern (“FEOC”) rules. FEOC’s include China, Russia, North Korea, and Iran. Key proposals include:

• Beginning 2024, companies that have >25% ownership or control by a FEOC will not be eligible for tax credits available under the Inflation Reduction Act (IRA).
• Beginning in 2024, an eligible clean vehicle (for IRA credits) may not contain any battery components that are manufactured or assembled by a FEOC.
• Beginning in 2025, an eligible clean vehicle may not contain any critical minerals that were extracted, processed, or recycled by a FEOC.

These rules are quite strict and it is looking like the majority of EVs sold in the USA will not qualify in 2024 and hence not receive the subsidy of up to US$7,000 per vehicle. For example, the Tesla Model 3 and Model Y base range EVs use Chinese made LFP batteries, making them both ineligible to meet the FEOC rules. Things will only get harder in 2025. Of course, this is designed to motivate auto and battery OEMs to hurry up and build a new western battery supply chain, independent of FEOC.

The FEOC proposal follows last month’s news of new guidelines for the EU Critical Raw Materials Act (“CRMA”) as discussed here. A key ruling was that “not more than 65% of the Union’s consumption of each strategic raw material comes from a single third county.”

U.S. proposal to create a ‘Resilient Resource Reserve’ for key critical minerals

As reported in December, the U.S. select committee has recommended the creation of a critical mineral reserve to protect domestic industry. The Fastmarkets report stated:

“The adoption of such a reserve is intended to “insulate American producers from price volatility and (the People’s Republic of China’s) weaponization of its dominance in critical mineral supply chain. Such a reserve would be used to sustain the price of a critical mineral when prices fall below a certain threshold and would be replenished through contribution from companies when prices are “significantly” higher”…The fund would target critical metals where there is high price volatility, low US domestic production and import dependence on China. Cobalt, manganese, light and heavy rare earths, vanadium, gallium, graphite, germanium and boron are critical minerals that fall under that category, according to the report…”

Note: Bold emphasis by the author.

Lithium

China lithium carbonate spot prices fell again in December 2023, with the price now at CNY 96,500/t (USD 13,505/t) and down 82% over the past year. Prices are now below the marginal cost of production, meaning a bottom should be found very soon (assuming EV sales hold up in 2024).

Industry participants are increasingly calling a likely bottom. For example, China Futures Co. analyst, Zhang Weixin, forecasts China’s lithium carbonate spot to bottom out between CNY 80- 90,000/t  (US$11,200-US$12,600/t). Goldman Sachs is a little more bearish with a 1 year price target for China’s spot lithium carbonate of US$11,000/t.

The negative price action has not deterred SQM and Gina Reinhart’s Hancock Prospecting (private) who recently increased their bid to A$3.70 per share to takeover Australia’s Azure Minerals Limited (ASX: AZS).

In December we saw shareholders approve the Allkem Limited (ASX: AKE | TSX: AKE) – Livent Corporation (NYSE: LTHM) ‘merger of equals’ which is now expected to close by January 4, 2024. The new company is to be known as Arcadian Lithium PLC (NYSE: ALTM | ASX: LTM).

Finally, in December we got news that free markets supporter Javei Milei was elected as the new Argentina President. This is good news for those companies with mining projects in Argentina, of which there are many lithium projects under development.

The lithium carbonate spot price collapsed in 2023 and is now below the marginal cost of production and expected to form a bottom very soon

Magnet Rare Earths

Neodymium prices fell in December to CNY 560,000/t almost 1/3 the price of the February 2022 peak. The one year outlook remains quite weak; however, this will largely depend on how China’s economy performs in 2024. A strong pickup in EV sales in 2024 could quickly change the market dynamics.

The big news in December in the rare earths market this month was China’s announcement to ban the export of rare earth processing technology. As discussed in an InvestorNews article, Western companies have been efficiently separating rare earths for some time, so this ban has minimal implications. CMI Co-Chair and rare earths expert, Jack Lifton, states: “Solvent extraction separation is a long-established practice everywhere. The issue is the production of rare earth metals and alloys and from them of rare earth permanent magnets. This is where China’s massive lead in manufacturing technology may be insurmountable. Time will tell.”

Of course, the trend for Western auto OEMs is concerning, especially following China’s recent introduction of export license permits on graphite products (including synthetic graphite, flake graphite, and spherical graphite).

Cobalt, Graphite, Nickel, Manganese, and other critical minerals

Cobalt prices (currently at US$12.91/lb) were lower the past month and continue to be very depressed. China’s slowdown and the slowdown in global electronics sales have suppressed cobalt demand at the same time as new supply from the DRC and Indonesia has risen.

One glimmer of hope for the Western cobalt producers is that the U.S. government announced in December the creation of a critical mineral ‘Resilient Resource Reserve’ (as discussed above).

Flake graphite prices also remain very weak with prices near the marginal cost of production. Following the introduction of Chinese export license permits in December 2023 there has been some increased signs of buying activity and a slight graphite price improvement. However, the main concern for flake and spherical graphite is that lower energy input costs in China have lowered the cost of producing synthetic graphite, thereby dampening demand for flake and spherical graphite. Despite this, there are several analysts now forecasting graphite deficits to begin as soon as 2024/25 as you can read in a recent InvestorNews article here.

Nickel prices fell slightly in December to US$16,279/t. The 1 year outlook for nickel remains poor due to oversupply concerns from Indonesia. A recovering global economy and Chinese property sector will be needed to help balance the nickel market, which is currently in oversupply.

Manganese prices also fell slightly in December and are now at CNY29.20/MTU.

2023 has been a tough year for many critical mineral prices (except for gallium, germanium, tellurium, indium, tin, and uranium – a critical mineral in Canada) as a slowing China and global economy weighed down demand at a time where supply increased. Uranium was the standout performer in 2023 with a gain of over 75%. You can read an article here from back in April 2023 where we highlighted the coming rise of uranium.

The key to watch in 2024 will be if we see lower interest rates in China trigger a China property and economy recovery. A stronger U.S. and Europe in 2024 would also help boost the global economy and demand for critical minerals. Lower interest rates in 2024 could potentially make it a great year for the auto sector and EV metals.

Wishing you all a safe and prosperous 2024 from the Critical Mineral Institute (“CMI”).

Reviving the Domestic American Rare Earth Permanent Magnet Industry

Bad news for those who think that the shortage of rare earth processing in America can be resolved by the injection of “free” money (A/K/A subsidies [also known as taxpayer’s money]) into the “free” market as, drum roll, please, “tax credits,” grants, and loans. The Chinese have decided not to give up their decades-long, learned by trial and error as much as by science and engineering, dominance in rare earth processing. China has announced a (further) tightening of its strict laws against the export of rare earth themed industrial technology. In particular, this means that technologies for producing rare earth metals, alloys and MAGNETS may not be shared with ANY foreign (to China) entity as a matter of national security!

Indeed, most of the mining, refining, processing, and fabricating technology for rare earths and their commercial products originated in Europe and the United States between the end of World War II and the early 1980s, but, at that time a combination of newly exploited deposits in China and the need to lower costs for the rapid expansion of the rare earth permanent magnet industry drove rare earth processing and manufacturing engineering to China and Japan.

By the end of the twentieth century, the rare earth permanent magnet manufacturing industry had essentially vanished from the West. By two decades later, it has become even more narrowly confined to China.

Scientists in the West (more and more of whom are of Asian origin) certainly understand the science behind rare earth permanent magnets. Still, the manufacturing engineers who produce products based on this “science” are a vanishing breed. Since they have had little or no employment in the specialty of the mass production of rare earth permanent magnets since the late twentieth century, their numbers have diminished to below replacement level; in other words, the specialty is dead.

Of course, none of this is of interest either to our technologically illiterate governing class (the self-serving aristocrats previously known as politicians), or to their subservient academic mob of backbiting “advisors.” The Field of Dreams, also known as the U.S. Congress, goes by the mantra, “We will fund it, and it will happen. So, let it be enacted, so let Wall Street prosper.”

But, no amount of money, high fashion, good dining, or good looks (Have you ever seen the staffers in the House and Senate office buildings or the young Wall Streeters?) can substitute for legacy engineering, where the older experienced generation of manufacturing engineers has nurtured a younger generation to carry on and avoid the inevitable mistakes and costly dead ends so common to the well educated but inexperienced. Of course, engineering is of no interest to the table-top and bench-scale “scientists” who plague our society and influence our governors with their innovation and disruptive technology!

The tiny remaining rump of Western rare earth permanent magnet makers are mostly smoke and mirror specialists; they buy magnet alloy “blanks” from Chinese manufacturers and finish them into end-user forms in their non-Chinese home countries. Thus, this makes such products count as “domestic.”

I don’t see how such magnets can pass the “non-Chinese produced mandate of the IRA, so users of them will not qualify for the Bidenomic “tax credits.” And, I suspect, that if the U.S. tax rebate (subsidy) on domestic magnet production now before Congress is enacted, then China will simply terminate the sale of such blanks to foreigners, or for export, cutting off the scam of importing such blanks into the U.S. and calling the magnets then produced domestic.

What’s going to happen if and when the Chinese government declares such exports to simply be “technology” forbidden for export as an impediment to (Chinese) national security?

I think we’re about to find out.

Strategic Importance of US-Canadian Government-Industry Collaborations in Critical Minerals Discussed

In a recent interview with InvestorNews’ host Tracy Weslosky, Pat Ryan, Chairman and CEO of Ucore Rare Metals Inc. (TSXV: UCU | OTCQX: UURAF), detailed a significant development in the rare earths sector. The Canadian government has awarded Ucore a $4.28 million funding agreement, a move that underscores Canada’s commitment to advancing critical mineral processing and green energy transition.

Strategic Government Investment in Rare Earth Processing

The funding, directed towards Ucore’s RapidSX™ technology commercial demo plant in Kingston, aims to enhance the processing of light rare earths. This support is not just about financial backing but also a recognition of Ucore’s technological advancements. The Canadian government’s decision to invest is informed by their observation of the rare earth sector, seeking opportune moments to propel forward.

Dual Government Support: A Sign of Confidence

Jack Lifton’s comments on this development highlight the importance of dual government support from both Canada and the United States. Previously, the U.S. Department of Defense funded Ucore for a $4 million program focusing on heavy rare earth processing. This collaboration represents a concerted effort by North American authorities to diversify and secure critical mineral supply chains, crucial for defense and industrial markets.

Milestones and Technical Achievements with RapidSX Technology

Ucore’s project focuses on purifying critical elements like praseodymium (Pr) and neodymium (Nd), essential for electrification technologies. Achieving the required purity levels for these elements is a key milestone, offering OEMs qualified products for various applications, from wind energy to automotive and defense sectors.

Impacting the North American Supply Chain

Pat Ryan emphasized the broader implications of this announcement for the North American supply chain. The funding aids in bridging the gap between rare earth resources and the production of metals and magnets. Ucore’s technology is pivotal in westernizing rare earth processing, an essential step in reducing reliance on foreign sources, particularly China.

Accelerating Long-term Objectives

This financial backing from the Canadian and U.S. governments enables Ucore to intensify its operations. It allows for extensive testing and development, essential for scaling up to a full-size commercial plant. This support not only keeps Ucore on track but also accelerates its long-term objectives by allowing more comprehensive testing and refinement of their processes.

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About Ucore Rare Metals Inc.

Ucore is focused on rare- and critical-metal resources, extraction, beneficiation, and separation technologies with the potential for production, growth, and scalability. Ucore’s vision and plan is to become a leading advanced technology company, providing best-in-class metal separation products and services to the mining and mineral extraction industry.

Through strategic partnerships, this plan includes disrupting the People’s Republic of China’s control of the North American REE supply chain through the near-term development of a heavy and light rare-earth processing facility in the U.S. State of Louisiana, subsequent Strategic Metal Complexes in Canada and Alaska and the longer-term development of Ucore’s 100% controlled Bokan-Dotson Ridge Rare Heavy REE Project on Prince of Wales Island in Southeast Alaska, USA.

Disclaimer: Ucore Rare Metals Inc. is an advertorial member of InvestorNews Inc.

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Lynas Rare Earths Ltd. (ASX: LYC), the Australian mining giant, recently breathed a sigh of relief. Malaysia’s government granted the firm a pivotal extension on their operating license, allowing them to continue importing and processing raw materials laden with naturally occurring radioactive elements until March 2026.

Previously, Malaysia had stringent reservations due to radiation concerns stemming from the cracking and leaching procedures in processing these materials. The facility in Pahang, Malaysia, has been mired in controversies surrounding radioactive waste, specifically thorium, since 2012. Malaysia had gone to the extent of instructing Lynas to shift certain radioactive waste-producing operations out of the country, even enforcing a ban on imports of raw materials with these elements.

The game-changer was Lynas’s innovative proposal: a technology that could extract thorium not just from the raw materials but also from the accumulated waste. If Lynas can effectively commercialize this method, the waste can be rapidly disposed of, while the extracted thorium might find buyers in nuclear plants worldwide.

But why is this decision so monumental for Lynas?

For starters, had Lynas not been granted this extension, the company would be staring at a gaping hole in their supply chain. Their Kalgoorlie plant in Australia would not start processing any carbonate product until the next year, and ramping up to their nameplate capacity would take potentially another nine months. This scenario would have crippled their Malaysian production for nearly three-quarters of the year, slashing their annual output by half.

Historically, Lynas imported its monazite concentrate from Mount Weld in Australia. This concentrate would then journey to Malaysia, undergoing a sulfation bake. In simpler terms, it would be combined with sulfuric acid, processed in a kiln, and subsequently undergo a water leach and purification process. But one of the waste streams from this method, which contained higher radiation levels, proved problematic.

Lynas’s ambitious plans include expanding its Magnetic Materials (Neodymium and Praseodymium) production in Malaysia, a crucial component in various modern applications ranging from magnets in wind turbines to motors in electric vehicles. With expansion plans in the pipeline and a new facility in Texas, the extended operating license in Malaysia ensures that Lynas has a consistent supply to meet global demands.

The strategic decision by the Malaysian government underscores the importance of Lynas in the global rare earth industry. With news of other major players facing operational hiccups, the industry needed a win. And this decision, undoubtedly, is a significant one. It not only secures Lynas’s position but also sends a positive signal for the rare earth industry at large.

In essence, this development underscores a harmonizing synergy of economic ambitions and environmental prudence. While the decision spells robust business prospects for Lynas, it’s also a nod to Malaysia’s commitment to environmental sustainability. The future, it seems, is both green and bright for Lynas and rare earths.