Rare Earths: Canada Expands Supply Chains  

by | 16. Apr 2024 - 10:39 | Economy

From 2025, raw materials from Vietnam are set to be processed in Canada. At the same time, cooperation with France is being expanded.

A processing plant for rare earths is currently being built in the Canadian province of Saskatchewan – it would be the first domestic plant and one of the few outside of the raw materials giant China. As early as next year, raw materials from Vietnam, which aims to become a major producer of rare earths, will be processed there. The operator of the plant, the government-funded research and technology organization Saskatchewan Research Council (SRC), signed an agreement to this effect with the Vietnamese Hung Thinh Group (HTG) on Monday. From June 2025 to 2030, up to 3,000 tons of rare earth carbonate will be supplied annually, enough to produce about 400 tons of rare earth metal annually. The critical raw materials are essential for numerous green and digital technologies. The construction of the plant has recently received millions in funding from various government agencies. It is expected to act as a catalyst for the resource sector across Canada and strengthen the midstream supply chain.

Canada and France as Trading Partners

At the same time, the Government of Saskatchewan announced that it had signed a Memorandum of Understanding with France to develop supply chains for strategic minerals. The focus is on sustainable, secure supply chains, research into critical minerals, and the common goal of reducing greenhouse gas emissions. While resource-rich Canada wants to establish itself as a leading producer of raw materials, France is home to one of the few rare earth plants in Europe, operated by the chemical group Solvay. As we reported, the processing plant is to be expanded to strengthen the European value chain for permanent magnets made from rare earths. Almost 100 percent of these components, important for electric motors and wind power, are currently imported into the EU from China.

Photo: iStock/Captured by Keeleigh

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