American Rare Earths May Discover Largest Deposit in North America

Recent exploration results from American Rare Earths (ARE) indicate that the reserves in Arizona and Wyoming may be the two largest rare earths mines in the United States, making ARE's holdings the largest in North America. According to SEC filings, the current U.S. leader in rare earth production is MP Materials, which owns the only operating rare earth mine in Mountain Pass, California, responsible for producing 15% of the mineral content consumed on the global market, according to SEC filings.

According to White House estimates, demand for rare earth minerals will increase by as much as 600 percent over the next few decades as the transition to a clean energy economy takes hold. American Rare Earths expects the global rare earth market to reach $20 billion in the next few years.

While most attention is usually focused on lithium, which powers batteries, super-powerful rare-earth magnets are what convert motion into electricity, and the White House says 87 percent of that market is controlled by China.

While Russia is a major exporter of minerals, including some rare earth minerals, it is not a major supplier of these specific elements. Even so, Russia's war with Ukraine has intensified the urgency for businesses to shift production.

Mining raw materials is the beginning of a long process, and the U.S. does not currently have the capacity to turn its own supply of rare earths into a useful product. Currently, rare earths mined in California are shipped to China for refining and manufacturing.

There is growing political support for keeping the supply chain in the U.S. In January, Senators Tom Cotton and Mark Kelly introduced legislation that would create an inventory through the Department of Defense and require defense contractors to stop buying rare earths from China by 2026.

And earlier in April, Senators Marco Rubio and Cindy Hyde-Smith introduced a bill that would provide funding through the Department of Energy to support the domestic manufacture of finished rare earths.

"Relying on other countries to obtain these critical products poses a serious national and economic security issue." Rubio said in a statement, "We need to take immediate action to localize these operations."

President Biden has also issued several executive orders over the past year directing investment and cooperation to promote offshore business in this industry and describing U.S. dependence on other countries as a threat to national and economic security.

Given the current exploration results, American Rare Earths may also find the largest deposit in North America ARE currently describes itself as a pure exploration business, which means a company focused on one product or service. The company is actively researching new, more environmentally friendly ways to process rare earth raw materials.

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