Canada (Saskatchewan) Opens Up Rare Earth Metal Producer

Highlights

• SRC launched the first rare earth processing facility in North America.
• The facility produces 10 tonnes of neodymium-praseodymium metals monthly.
• The project received a $71 million provincial and $30 million federal investment.
• It enables vertically integrated ‘minerals to metals’ capabilities in Saskatchewan.
• The facility aims to challenge China’s 85% global rare earth processing dominance.
• The goal is to scale production to 40 tonnes per month by the end of 2024.

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Late last year the Saskatchewan Research Council (opens in a new tab) (SRC) broke ground for a major North America rare earth production center.

The SRC made a major leap forward in rare earth production, announcing that its Rare Earth Processing Facility in Saskatoon has successfully begun producing rare earth metals at a commercial scale ahead of schedule just in late Sept. 2024.

This marks North America’s first and only facility to accomplish this feat, positioning Saskatchewan as a leader in the critical mineral supply chain. Of course, in the United States (California and Texas), MP Materials is also developing an integrated mine-to-magnet capability.

Using in-house, automated metal smelting technology, SRC currently produces 10 tonnes per month of neodymium-praseodymium (NdPr) metals, essential for electric vehicles, wind turbines, and advanced electronics. The facility aims to quadruple production to 40 tonnes per month by the end of 2024, which could significantly impact North America’s dependence on China for these crucial materials.  Rare Earth Exchanges reached out to media contact Allison Collins (opens in a new tab) to validate the production levels.

Premier Scott Moe hailed the achievement as a milestone for Canada’s rare earth industry, reinforcing Saskatchewan’s role as a hub for critical mineral development. The government’s $71 million investment and $30 million in federal funding have helped SRC develop vertically integrated “minerals to metals” capabilities.

A key aspect of the project is SRC’s tolling agreements with international clients, allowing the facility to process rare earth oxides into metals without significant upfront costs for raw materials. Minister Jeremy Harrison emphasized that SRC’s proprietary technology gives Canada a strategic edge, ensuring a stable supply of rare earths for North American industries.

While this achievement is significant, critical questions remain:

• How will SRC compete with China’s dominance in rare earth processing? China controls over 85% of the world’s rare earth processing capacity, benefiting from economies of scale and lower production costs. Can SRC scale up fast enough to offer a competitive alternative?
• What’s the plan for securing a domestic supply of raw rare earth feedstock? Currently, Canada lacks large-scale rare earth mining operations, and the U.S. is still struggling to establish a sustainable supply chain. Without a consistent upstream source, will SRC remain dependent on foreign material?
• What role will federal policies and incentives play? The U.S. and Canada have both recognized the need to reduce reliance on China for critical minerals, but concrete policies, such as long-term government procurement contracts or additional funding for mining ventures, could be necessary to ensure SRC’s long-term success.
• What are the environmental and social implications? Rare earth processing is notoriously energy-intensive and produces hazardous waste. While SRC touts its state-of-the-art technology, how does it compare in sustainability metrics against existing global producers?

SRC’s breakthrough is an important first step toward North American rare earth independence, but the road ahead is long and fraught with geopolitical and economic challenges. Can this facility become a viable cornerstone of a Western rare earth supply chain, or will China’s dominance remain unshaken?  See SRC’s website (opens in a new tab).