USA Rare Earth Commends Presidential Determination for Mining and Batteries

USA Rare Earth LLC, operator and 80 percent owner of the Round Top heavy rare earth, lithium, and critical minerals project in Hudspeth County, Texas, along with its joint venture partner, Texas Mineral Resources, issued a statement endorsing Biden's presidential decision to designate domestic mining and critical materials for the production of high-capacity batteries as necessary for national defense under the Defense Production Act of 1950 (DPA).

"We commend this important step by President Biden in supporting domestic production of battery minerals. Establishing a vertically integrated domestic supply chain for these critical materials is necessary to advance U.S. manufacturing capabilities and improve national security. USA Rare Earth provides abundant domestic resources to support the President's lithium production and processing initiatives," said Thayer Smith, president of the company.

With the DPA Title III designation of strategic materials for batteries, American Rare Earths is developing the only domestic mining project that contains both lithium and rare earth elements in a single deposit of DPA-designated materials.

Mr. Smith continued, " USA Rare Earth is developing a fully domestic rare earth ore-to-magnet supply chain, and Round Top's lithium will support the manufacture of batteries for electric vehicles. These are two important components not only of the future of electric transportation but also of a major defense platform."

According to the Department of Defense, the Defense Production Act (DPA), enacted in 1950, provides the President with a broad set of authorities to ensure that essential domestic industrial resources are available in a timely manner to support the requirements of national defense and homeland security.

President Trump designated the entire rare earth supply chain as eligible for Title III of the DPA in July 2019. This designation remains in effect as President Biden added a new presidential determination for strategic and critical materials used in the production of high-capacity batteries for the automotive, electric vehicle, and stationary storage sectors, stating that, in order to advance national defense, the United States must ensure a reliable and sustainable supply of such strategic and critical materials.

The United States should ensure the availability of such materials through environmentally responsible domestic mining and processing; recycling and reuse; and recovery from non-conventional and secondary sources, such as mine waste, consistent with the promotion of national defense.

USA Rare Earth is creating a new entirely domestic rare earth mine-to-magnet supply chain to provide the rare earth magnets and materials needed to ensure compliance with the recent Presidential Executive Order and DPA Presidential Decision. Rare earth magnets are necessary for defense, medical devices, green energy, and electric vehicle production. Currently, U.S. companies receive most of their battery-grade lithium, rare-earth materials, and permanent magnets from China.

In February 2021, the U.S. Geological Survey identified Round Top as the largest deposit of gallium in the United States. Gallium is a key semiconductor chip material, and there are currently no producers of this important material in the U.S. In February 2022, the U.S. government issued final approval of the updated Critical Minerals List. The company will bring nearly half of the key minerals identified by the U.S. Geological Survey into domestic production, including gallium, which tops the new Critical List.

Leading mining engineering firm SGS Bateman has been engaged as the lead engineer to complete the pre-feasibility study, which SGS, working with an experienced technical team at Rare Earths USA, remains on track to complete in the third quarter of 2022.

USA Rare Earths, LLC owns an 80% operating joint venture interest in the Dome Heavy Rare Earths and Key Minerals Project located in Hudspeth County, West Texas.

The Round Top Deposit hosts 16 of the 17 rare earth elements, as well as lithium, gallium, and other high-value technology minerals. Round Top holds nearly half of the 50 minerals and metals on the U.S. government's Critical Minerals List, and more than 60 percent of the material from Round Top is expected to be used directly in green or renewable energy technologies.

In 2020, the company opened rare earth and key minerals processing facility in Wheat Ridge, Colorado, and in April 2020, the company acquired the NdFeB permanent magnet production system formerly owned and operated by Hitachi Metals America, Ltd. in North Carolina.

Texas Mineral Resources is focused on developing and commercializing its Round Top heavy rare earths, technical metals, and industrial minerals project in Hudspeth County, Texas, with its joint venture partner USA Rare Earth LLC. In addition, the company plans to develop alternative sources of strategic minerals, as well as develop domestic mining projects for other more traditional metals.

• < Prev
• Next >