The Canadian government has announced a significant investment of $16 million to support rare earth mineral processing in Saskatchewan. The funding, primarily directed to the Saskatchewan Research Council (SRC), aims to establish domestic capacity for processing bastnaesite, a critical mineral used in electric vehicle motors.
The SRC, based in Saskatoon, plans to process 2,000 tonnes of bastnaesite over the next two years. This initiative could potentially supply enough rare earth metals to power more than 62,000 electric vehicles. Mike Crabtree, SRC’s president and CEO, emphasized the importance of these minerals in the energy transformation, stating, “Lithium is the gas tank of an electric vehicle. Rare earths make the engine.”
The investment includes $15.9 million through PrairiesCan for bastnaesite processing and an additional $209,330 from Natural Resources Canada to create a public database of mineral characteristics. This database will aid in identifying critical mineral deposits more efficiently, potentially reducing mining costs and environmental impact.
Jonathan Wilkinson, Canada’s Minister of Energy and Natural Resources, highlighted the strategic importance of developing domestic processing capabilities. “Critical minerals are the natural gas of the future,” he said, emphasizing the need to reduce dependency on China for these essential resources.
This funding builds upon previous government support totaling $13.5 million for the SRC’s rare earth processing facility. The initiative aligns with Canada’s broader strategy to secure its position in the critical minerals supply chain, crucial for the growing demand in green energy technologies.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
