US Teams Up with Canada to Reduce Rare Earth Reliance on China

To reduce global rare earth reliance on China, Canada and the US recently signed a Memorandum of Understanding (MOU) to strengthen cooperation in mining and production of rare earths. The memorandum was signed on December 19 to ensure the supply of crucial minerals to key industries such as aviation, defense, and clean energy.

According to the Globe and Mail, since August this year, officials from the two nations formulated an action plan for strategic investment in special mineral projects and North American processing facilities, and increased research and development efforts for rare earth ore extraction.

Pierre Gratton, president of the Mining Association of Canada, said that China is near-monopoly on so-called critical energy minerals such as uranium, lithium, cesium, and cobalt. Such types of specialty materials are widely used in the manufacture of lasers, computer chips, electric cars, solar panels, Smartphones, and military equipment include smart missiles and fighter jets.

He pointed out that the US wants to ensure a reliable supply of minerals in defense and manufacturing, and Canada is a good choice as is has a strong mining industry and have integrated into the US market.

At the White House meeting in June this year, US President Trump and Canadian Prime Minister Trudeau agreed to seek collaboration on critical minerals. The United States is also seeking to establish alliances with Australia, Japan, and the European Union. Trudeau said Canada is ready and willing to supply the United States with strategically important minerals used in consumer and industrial products as Washington steps up efforts to cut its reliance on China.

Gratton revealed that the Canadian mining industry is setting up a task force to work with Ottawa and Washington. The initial goal is to establish mineral projects, study how to overcome cost challenges, and strengthen competitiveness. Long-term goals include allowing the U.S. manufacturing and defense industries to secure supply on a contract basis.

Rare earths, a group of 17 elements that appear in low concentrations in the ground. China supplied 80 percent of the rare earth imported by the United States from 2014 to 2017. In 2018, the US compiled a list of 35 minerals deemed to be critical to their economy and defense. China is the largest supplier of 13 of these minerals and a major producer of 20 of them.

• < Prev
• Next >