MARKET

Unlocking Clean-Tech REE Solutions is critical to securing North America’s Strategic Future

North America Focused

Developing domestic REE projects to help bring supply chains back to North America

Eco-Tech

Clean-tech driven with a focus on carbon footprint and water consumption

ESG

Bringing jobs back to North America in the mining friendly regions of Saskatchewan, Quebec and Texas

Innovative REE Sources

Creating value from under explored jurisdictions and mining waste (tailings)

Rare Earths are critical to…

Magnets and Motors

Used to produce high-strength permanent magnets, now ubiquitous in mobile phones and laptops as well as energy-efficient electric motors and generators in EVs, wind turbines, appliances and hundreds of other applications.

Ceramics, Pigments and Glazes

Used to produced functional and decorative ceramics, structural ceramics, cutting tools, dental crowns, electrical capacitors, tiles and more.

Battery Alloys

Rare earth elements are used to produce anode materials for nickel-metal hydride batteries used in hybrid electric vehicles and consumer electronics like cordless power tools and shavers.

Defense Technology

Used for energy efficient lamps, display screens and avionics, ceramics for jet engine coatings.

Glass Polishing, Phosphors

Used to polish optical glass, hard disk drives, LCD display screens and gemstones. Also used for UV-filtering glass coatings and high-quality optical glass for camera lenses, microscopes and telescopes and for phosphors in display screens and avionics.

Industry, Metallurgy and Alloys

Used in some types of steel and ductile iron making as well as in a variety of different alloys. Used in catalytic converters in gasoline and diesel-powered vehicles, fuel cracking and other oil refinery processes and in the aerospace, agriculture, high-tech and chemical industries.

Despite their growing importance, the North American supply chain is tenuous. In the next decade, REE demand will increase significantly, and a stable supply chain will be essential.

China Rare Earth Exports

Supply Reliability Issues

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  • China, the world’s largest REE Supplier, is becoming a net importer, according to Roskill and other industry watchers. 1
  • China’s government has imposed production quotas and environmental controls, and curtailed illegal production, which will negatively impact world supply of RE. 2
  • In January 2022, the US Senate in a bi-partisan move introduced legislation forcing defense contractors to stop buying rare earths from China by 2026.
  • This is in addition to the previous administration’s Executive Order 13953, declaring reliance on Chinese critical mineral export a national emergency and authorizing the Defense Production Act to streamline the construction of domestic mines while prioritizing the expansion and protection of minerals in secured supply chains.

Pricing Trends

Signaling Future Growth

Demand is Growing

REE prices reached a bottom in 2016 from the 2011 highs, and stayed at stable prices until 2019, but high demand elements like Neodymium (Nd) and Praseodymium (Pr) have since reached new highs.

China’s industry ministry met automakers and battery companies last month to discuss surging prices of rare earths.

The Chinese price of praseodymium-neodymium alloy used to make super strong magnets used in EV motors doubled last year and has already shot up more than 10% so far in 2022 to $184,072 per tonne.

-Feb 7, 2022 (https://www.reuters.com/article/rareearths-prices-idUSKBN2KC0Z1)

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3-year historical average pricing ~US $55/kg for Neodymium and Praseodymium, below current prices.

Global Megatrends Accelerating Demand

to Drive the Green Revolution

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Key global megatrends are driving strong and diversified demand for rare earths in permanent magnets

  • LOW CARBON TRANSITION: environmental protection and climate change driven by COP26.
  • SUSTAINABLE RESOURCE SECURITY: Many countries are working to secure supplies of critical metals, including NdPr, independent from Chinese supply.
  • NO CURRENT SUBSTITUTES: NdPr is required for the permanent magnets in electric vehicles and wind turbines, regardless of the metal requirements from the evolution of battery technology.

Demand accelerated by evolving global emissions legislation

  • Value of global magnet rare earth oxide (REO) consumption forecast to increase from US $2.98bn to US $15.65bn by 20301
  • Each new EV requires between 1-2kg of NdPr2: The environmental targets from the 2021 COP26 summit will require a significant expansion in EV production, replacing petrol and diesel vehicles.
  • Wind turbines consume ~600-830kg of REO per Megawatt3 – wind power will be a key contributor to meeting COP26 and Paris Climate Goals.

Sources: 1. Adamus Intelligence.   2. Edison.   3. Curtin University.

Transport Sector

Electrification Boom

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All from Sprott REE Conference, Nov 23, 2021

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GM to go all-electric by 2035, phase out gas and diesel engines

Twelve U.S. states urge Biden to back phasing out gas-powered vehicle sales by 2035.

All from Sprott REE Conference, Nov 23, 2021

OVERVIEW

The green technologies of the future—electric vehicles, wind turbines, drones, and more—depend on powerful rare earth magnets to turn energy into motion.

Without a consistent and trusted supply, the entire supply chain for critical magnetic materials has shifted to Asia, primarily China.

Today, China dominates the rare earth industry, producing over 80% of global supply.

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