Canada and the U.S are ramping up plans to counter China Monopoly on rare earth minerals. Officials from the two countries are in the process of drafting plans to explore ways of reducing dependence on rare earth minerals that come from Chinese mines. China is by far the biggest supplier of rare earth minerals, most of which are finding great use in powering smartphones, military hardware, and crucial tech equipment.
Canada-U.S Rare Earth Minerals Push
By coming together, the U.S and Canada plan to enhance investments in rare earth mines in North America as well as processing facilities in the continent. The collaborations will not only enhance investments into the mining industries of the two countries but will also go a long way in creating new job opportunities.
Canadian and U.S officials have met since July as they seek to find the way forward to secure supply for 35 rare earth minerals, crucial to the economic and national security. Some of the minerals in question include uranium, lithium, cesium, and cobalt.
Reducing dependence on Chinese rare earth supplies comes at a time when the U.S and Canada are entangled in a fierce political standoff with Beijing. The shutting down of Huawei operations in North America compounded by a ferocious trade war has all but seen ties between the economic powerhouses deteriorate in the recent past.
China has fought back in the best way it knows. It now appears that the U.S and Canada are concerned that the political standoff could spill over and affect their ability to access rare earth minerals from China.
In what is seen as an effort to cut China supplies completely, the U.S and Canada have already opened discussions with other nations. The two are already in discussions with Australia, Japan and the European Union as part of an effort of forming an alliance that will ensure a constant supply of the crucial rare earth minerals.
Amidst the ongoing standoff, Canadian rare earth metals have come out as winners given the expected investments into the industry.
Top Canadian Rare earth Minerals Stocks
Neo Performance Materials Inc. (TSX:NEO) materials is one of the biggest mining companies focused on rare earth and rare metal functional materials in Canada. The company is engaged in the production of magnetic powders used in the formation of permanent magnets that continues to elicit a strong interest in the auto industry. Its chemical and oxide division is engaged in the production of light and heavy rare earth functional materials used in consumer electronics and electric vehicles.
Avalon Advanced Materials Inc. (TSX:AVL) is one of the companies well-positioned as the U.S, and Canada increase focus on local rare earth mines. The Toronto based miner has made a name for itself on the mining of rare earth elements tantalum, niobium, and zirconium. It also boasts of three advanced stage projects showing great prospects on lithium tin and indium
Medallion Resources Ltd. (TSXV:MDL) is another company well-positioned to benefit as focus shifts to local rare earth miners. Backed by a low-cost rare earth production strategy. The company is currently exploring ways to process monazite into a rare-earth product for use vehicle electrification as well as wind power generation and robotics.