The Supply Crisis for Rare Earth Elements Intensifies

NetworkNewsWire Editorial Coverage

NEW YORK, June 7, 2023 /PRNewswire/ -- The transition from fossil fuels to electrification has created a huge increase in demand for rare earth oxides and demand is expected to get much larger. Rare earth oxides are irreplaceable elements integral to permanent magnets, critical components in electric vehicles and sustainable power generation equipment, especially windmills. About 90% of all permanent magnets are currently produced in China, which is now considering banning or restricting exports of technology to process and refine rare-earth elements. Beijing is also pondering provisions prohibiting or limiting exports of alloy technology used in making high performance magnets made from rare earths minerals. As the transition to a cleaner world grows, China is restricting exports of permanent magnets and related tech in favor of feeding domestic demand, thus strangling the global transition. Governments in North America and across the world have voiced extreme urgency in reshaping supply chains to reduce dependence upon China and achieve clean energy mandates. Only a few companies can be called leaders in a nascent yet potentially explosive market. Ucore Rare Metals Inc. (TSX.V: UCU) (OTCQX: UURAF) (Profile) stands out with its transformative technology, RapidSX(TM), for separating and purifying critical metals. Also in the hunt for market share in this burgeoning new market is MP Materials Corp. (NYSE: MP), Neo Performance Materials Inc. (TSX: NEO), Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) and Li-Cycle Holdings Corp. (NYSE: LICY), all of which have established footholds and expanding operations in a concerted effort to shift away from reliance upon China and achieve energy independence.