Canada's First Rare Earth Producer Has Begun Deliveries

Nechalacho, located in Northwestern Canada, began production last June, making it the first rare earth producer in Canada and the second largest in North America after California's Mountain Pass mine.

According to Vital Metals, Nechalacho has 94.7Mt of world class resources with a 1.46% REO (rare earth oxides) content and the northern T-zone of the mine has 101,000 Mt of high grade resources with a 9.01% LREO (light rare earth oxides) content (2.2%NdPr).

Vital Metals said it aims to produce at least 5,000 tonnes of REO through the Nechalacho project by 2025 and has signed a phase I agreement with Norwegian rare earth separation company REEtec to supply 1,000 tonnes of REO (without cerium) per year for an initial five-year period.

Canada's Ministry of Natural Resources issued a report last year calling on the government to reduce its dependence on foreign markets for rare earths and position itself for the global market.

Canada produces 60 minerals, including key minerals, and is the only country in the Western Hemisphere with copper, cobalt, rare earth elements, graphite, lithium, manganese and nickel -- all raw materials needed to make batteries for electric cars, the report notes.

China now has up to 80 per cent of the world's rare earth processing capacity, the report said, citing figures. By 2030, China is likely to have about 67% of the world's lithium-ion battery capacity.

In addition to Canada, both the U.S. and Europe have proposed establishing local supply chains. Schaeffler, Germany's fifth-largest parts supplier, last month announced a five-year deal with REEtec to supply rare earths, the first time a European car supplier has sourced them from Europe itself. Schaeffler is a leading manufacturer of bearings for Volkswagen, GENERAL Motors, Toyota and other automotive companies.