U.S. and Brazil-based company to focus on acquiring high-quality rare earth element deposits in both countries
In a bid to reduce dependence on foreign sources and secure alternative supplies, American companies have been actively seeking investments and technology in Africa and Latin America. However, significant investment and technology barriers remain.
The US defense sector and automakers are particularly reliant on these materials, with China currently holding a dominant position in the global rare earths market. This dominance is due to billions of dollars invested in mining and processing since 2000, often with minimal environmental or safety oversight.
Beijing's recent restriction of shipments of seven rare earths to the US and other countries in April has further highlighted the need for a more self-reliant approach. In response, the US government has proposed a pricing support mechanism for domestic rare earths ventures to increase production and mitigate China's influence.
One such venture is Rare Earths Americas (REA), a company formed to explore and develop high-grade rare earths assets in the US and Brazil. REA's portfolio includes the Foothills discovery in Georgia, US, which contains grades of up to 41.3 percent total rare earth oxides, and the Alpha and Constellation projects in Brazil, which hold more than 1 billion metric tons of high-grade ionic clay rare earths mineralization.
The Alpha and Constellation projects provide access to large-scale, high-grade heavy rare earths, making them potentially valuable assets in the evolving rare earths market. REA's CEO, Donald Swartz, stated that the rare earths market is undergoing a generational shift as the West races to secure its rare earths future.
Swartz intends to advance REA's rare earths projects to support the long-term supply of critical materials essential to domestic innovation. REA combines experienced operators and investors with "deep expertise across global mining, energy, and critical materials."
The US government's efforts to develop domestic mine supply and build out refinement, processing, and production capacity also include the Mountain Pass mine in California, the only large-scale rare earths mine in the US. However, MP Materials, the company operating Mountain Pass, relies heavily on foreign processing for the rare earths produced at the mine.
REA recently raised AU$25 million in a private funding round and is expected to start its initial projects in phases aligned with clinical study stages, although no exact date has been provided. The Foothills project in the US offers a streamlined permitting pathway, potentially speeding up the development process.
As the world races to secure its rare earths future, companies like REA are poised to play a significant role in ensuring the long-term supply of these critical materials. The strategic partnerships and investments being made in the US and Brazil could help to reduce dependence on China and secure a more self-reliant future for the rare earths market.
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