Global governments are moving toward electric vehicles, and renewables. In fact, many want far more electric vehicles on the road. For example, in the U.S., California, Gov. Newsom signed an executive order that will ban the sale of gas-powered passenger cars in the state starting in 2035. Many also want far more reliance on solar and wind energy.
However, for those green plans to happen, many must also have reliable access to rare earth metals, such as neodymium and praseodymium. Unfortunately, many countries are running into a severe problem. All because nearly all rare earth comes from China, which has proven to be unstable.
Worse, China has announced tougher regulations over the rare earth industry, from mining to exports. “The new rules would give Beijing greater control over the supply of materials that have become vital for high-tech manufacturing around the world. China accounts for more than 60% of global rare-earth production, and its exports sank to a five-year low in 2020,” as reported by Nikkei Asia.
That’s part of the reason the U.S. – which relies on 80% of China for rare earth imports is spearheading an initiative to find alternative sources. In addition, according to Forbes, China is stockpiling rare earths and critical minerals for its own domestic use, as companies and governments face worldwide shortages due to new demand for electric vehicles, such as those from Tesla Inc. (NASDAQ:TSLA) and Nio Inc. (NYSE:NIO). No wonder many countries are seeking safer rare earth supply outside of China.
One of the Companies that Could Benefit is Defense Metals Corp. (TSXV:DEFN)(OTC:DFMTF)
The company just announced it’s pleased with recent Canadian-US government integration plans regarding electric vehicles and critical minerals such as Rare Earth Elements.
Craig Taylor, CEO of Defense Metals commented, “As we continue to advance the 1,708-hectare Wicheeda Rare Earth Elements deposit located near Prince George, British Columbia, we are actively engaging with government agencies and affiliated government groups. We expect 2021 to be a busy year for the Company.”
For further information on this North American industry development please read this article: https://www.mining.com/web/trudeau-eyes-leaps-forward-in-integration-with-us-on-evs-critical-minerals/
Other related developments from around the markets include:
Texas Mineral Resource Corp. (OTC:TMRC) an exploration company currently targeting the heavy rare earths, technology metals and a variety of industrial minerals primarily through its Round Top Mountain project in Texas, is pleased to announce the execution of a letter agreement to pursue, negotiate and subsequently enter into a joint venture agreement with Santa Fe Gold Corp. to jointly explore and develop a target silver property to be selected by TMRC among patented and unpatented mining claims held by Santa Fe Gold within the Black Hawk Mining District in Grant County, New Mexico. Completion of a joint venture agreement is subject to the successful outcome of a multi-phase exploration plan to be undertaken shortly by TMRC. The Black Hawk Mining District is located approximately thirteen miles west of Silver City, New Mexico. As documented in USGS, New Mexico state reports and Society of Mining Engineers reports, mineralization in this district, in general geological terms, consists of numerous, narrow carbonate veins containing high silver values in randomly distributed small lenses or “shoots”. It is one of a well-known geologic type of mineral deposit generally referred to as the “five-element veins.” Worldwide, approximately twenty of this type of deposit have been identified, including the historically important silver mining camps of Cobalt, Ontario, Joachimsthal, Czech Republic, Anneberg, Saxony and the Port Radium district in Northwest Territory, Canada. The signature characteristics of this type of deposit are high silver grades and its occurrence as native (metallic) silver. Another distinguishing feature of these historic mines is their modest size relative to their productivity.
MP Materials Corp. (NYSE:MP), the largest rare earth materials producer in the Western Hemisphere, announced its financial results for the third quarter and year-to-date ended September 30, 2020. “Our results show continued strong operational execution throughout 2020,” said James Litinsky, Chairman and Chief Executive Officer of MP Materials. “With our business combination complete, MP has a fully equitized balance sheet to support the execution of our long-term plans to become a key supply chain partner as global industry advances towards electrification,” added Litinsky. “Our next several quarters will be focused on our move downstream into production of higher-margin separated rare earths with a focus on NdPr. We expect to continue driving profitable growth as we produce our rare earth concentrate, which comprises 15% of global rare earth content today.”
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