Ottawa Allocates $16 Million to Saskatchewan Facility for Rare Earth Mineral Processing for Electric Vehicle Manufacturing

August 15, 2024 TruthUSA

The federal government has announced a $16 million investment in a Saskatchewan critical mineral facility to enhance its processing capabilities for elements used in the production of electric vehicles and wind turbines.

Minister of Energy and Natural Resources Jonathan Wilkinson stated on Aug. 14 that the funding for Canada’s first rare earth processing facility, located in Saskatoon, will enable Canada to process critical minerals that are essential for clean energy. Run by the Saskatchewan Research Council (SRC), the facility will utilize the federal funding to expand its bastnaesite processing capacity.

Wilkinson highlighted China’s strategic efforts to dominate the sector and emphasized Canada’s goal to reduce its dependency on China for rare earth minerals.

Saskatchewan Minister of Trade Jeremy Harrison described the SRC project as of “international significance” in light of China’s industry dominance.

“They have leveraged their position strategically beyond market reasons for strategic purposes,” he stated during a press conference. “This presents a significant challenge considering the importance of rare earths in our modern economy.

“We need a secure source and supply chain for critical minerals,” he added. “That’s exactly what this project aims to achieve.”

A significant portion of the funding—$15.96 million—will be utilized by the Saskatchewan Research Council to procure bastnaesite from Canadian sources and establish new domestic processing capacity for bastnaesite at SRC’s Rare Earth Processing Facility, as per Wilkinson.

The SRC will process bastnaesite ore obtained from the Canadian operations of Vital Metals Ltd. This ore will be converted into a mixed rare earth product, which will then undergo further refining using SRC’s solvent extraction and metal smelting technology to yield rare earth metals, according to an Aug. 14 government press release.

An additional $209,330 will be allocated for the development of a publicly accessible database detailing mineral characteristics, aiming to enhance the understanding of critical mineral deposits in Canada and reduce mining waste. The ultimate goal, Wilkinson explained, is to leverage this data for improved identification of deposits through sensor-based sorting, thereby cutting costs associated with transforming critical mineral deposits into mines, as well as reducing energy consumption and waste generated by mining activities.

Canada boasts some of the largest reserves and resources of rare earths globally, estimated at over 14 million tonnes in 2021, according to the SRC. The federal government has identified 34 critical minerals, with 27 of them present in Saskatchewan.

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