The Canadian province of Saskatchewan is positioning itself as a competitor to China in the processing and production of rare earth elements, aiming to establish itself as North America’s first commercial alternative source for these crucial metals. Rare earths are essential for manufacturing magnets used in electric vehicles and wind turbines.
The Saskatchewan Research Council (SRC) Rare Earth Processing facility is banking on a significant rise in demand for these magnets in the coming years, particularly from original equipment manufacturers like automakers. Known for its mining capabilities, Saskatchewan also has rich deposits of copper, potash, and uranium.
Currently, China dominates the global rare earth market, controlling about 95% of production and supply. This near-monopoly enables China to dictate prices and introduce uncertainty for users through export controls. In the past year, China has imposed export restrictions on critical metals such as germanium, gallium, and antimony, prompting Western governments to seek alternative sources.
The SRC Rare Earth Processing facility has begun commercial-scale production and aims to reach a target of 40 tonnes of rare earth metals per month by the end of this year, with an annual production goal of 400 tonnes of neodymium-praseodymium (NdPr) metals—enough to produce 500,000 electric vehicles. The facility has already established partnerships with potential clients in South Korea, Japan, and the United States.
“Our focus is to remain competitive within the Asian Metals Price Index,” said Muhammad Imran, vice president of SRC Rare Earth Elements. “We are constantly looking to optimize our facility using artificial intelligence applications to enhance efficiency.”
Currently, the price of rare earth metals like NdPr ranges from USD 65,000 to USD 75,000 per tonne, largely dictated by the Chinese government. Some miners argue for a premium price for metals produced outside China, citing concerns over lower environmental, social, and governance standards in Chinese production. However, Imran emphasized that the market will remain competitive, and manufacturers must be prepared to meet the pricing benchmarks set by the Asian Metals Index.
“This is what the market is telling you the price for rare earths is. If someone can negotiate a better deal, that’s great, but whether premium or no premium, the market will be competitive,” he stated.
