Rare earth elements (REEs) are a group of 17 metals that are vital for many modern technologies, including cell phones, computers, rechargeable batteries, catalysts, magnets, and defense applications. While abundant in the earth’s crust, REEs are not often found concentrated enough to be economically extracted. Currently, the global REE supply chain is dominated by China, which produces over 70% of the world’s REEs. However, there is growing concern in the U.S. and other countries about relying so heavily on China for these critical minerals.
This has led to increased interest in exploring and developing REE resources within the U.S. While the U.S. was once a major producer of REEs, its mines were unable to compete with China’s lower costs starting in the 1980s. Now, there is a renewed push to rebuild a domestic REE supply chain. The U.S. has a few potential rare earth deposits that could be developed, but most are still in the early exploration or feasibility stages. This article will provide an overview of which companies own the most promising rare earth mining projects in the U.S.
Major U.S. Rare Earth Projects
Here are some of the main rare earth mining projects currently being explored in the United States:
Mountain Pass Mine, California
The Mountain Pass Mine, located in San Bernardino County, California, was once the largest rare earth mine outside of China. It was operated by the company Molycorp and supplied most of the world’s rare earths from the 1960s to the 1980s. However, it went dormant in 2002 due to environmental issues and competition from China.
In 2017, the mine was purchased out of bankruptcy by a group of buyers including Shenghe Resources Holding Company, a Chinese rare earth processor. Shenghe holds a 9.9% stake in MP Mine Operations LLC, which owns the mine. The remaining stake is held by other minority investors. The mine resumed operations in 2018 under the ownership of MP Mine Operations LLC and primarily supplies rare earth concentrates to China.
Bear Lodge Project, Wyoming
The Bear Lodge rare earth project in northeast Wyoming is owned by Rare Element Resources Ltd., a Canadian mining development company. They own 100% of the mining claims and surface rights to the Bear Lodge Property. Rare Element Resources is currently working to finalize a feasibility study and secure permits to develop an open-pit mine at the site. Bear Lodge is projected to have one of the highest ratios of heavy rare earth elements, which are more valuable, in the U.S.
Round Top Mountain, Texas
Round Top Mountain in western Texas contains a large deposit of rare earth minerals. It is owned by Texas Mineral Resources Corporation, a mining company focused on developing the Round Top rare earth-uranium-beryllium project. In 2022, USA Rare Earth LLC acquired the mining rights for the development and mining of critical minerals at Round Top Mountain in a joint venture with Texas Mineral Resources Corporation. USA Rare Earth LLC is an investment consortium funded by U.S. private investors and aims to establish a full domestic rare earth metal supply chain.
Nechalacho Rare Earth Mine, Canada
While not in the U.S., the Nechalacho rare earth mine in Canada’s Northwest Territories is owned by Energy Fuels Inc., a leading U.S.-based uranium mining company. In 2021, Energy Fuels Inc. acquired a 100% interest in the mine from Cheetah Resources. The Nechalacho mine commenced production in 2021, becoming the first rare earth mining operation in North America. Energy Fuels extracts rare earth concentrates at Nechalacho and ships them to the U.S. for further processing. This aids the U.S. in developing a domestic rare earth supply chain.
Other U.S. Rare Earth Projects
In addition to the major projects mentioned above, there are a number of early-stage rare earth mining projects being explored across the United States:
– Bokan Mountain, Alaska: Ucore Rare Metals owns the Bokan mine property on Prince of Wales Island. It contains substantial deposits of heavy rare earth elements. A feasibility study has been completed but further environmental analyses are required.
– Elk Creek, Nebraska: NioCorp Developments Ltd. owns the Elk Creek niobium-scandium-titanium project in southeast Nebraska. It is expected to also produce rare earth elements as byproducts. NioCorp is currently seeking project financing.
– Diamond Creek, Idaho: U.S. Rare Earths holds claims in central Idaho that contain rare earth mineralization near Diamond Creek. This is an early-stage exploration project.
– La Paz, Arizona: Defense Metals owns the La Paz rare earth project north of Phoenix, Arizona. It has potential for large rare earth deposits. Exploration and resource definition drilling is underway.
– Lemhi Pass, Idaho: Quantum Rare Earths owns the Lemhi Pass project on the Idaho-Montana border. Historically it was a large-scale rare earth mining district. Enhancements of mineral resources are underway.
– Pea Ridge, Missouri: The Pea Ridge iron mine in Washington County, Missouri previously produced rare earths as a byproduct and new exploration licenses have been acquired.
Challenges Facing U.S. Rare Earth Production
While interest and investment are growing, there are still numerous hurdles facing the development of domestic rare earth mining in the U.S:
– Opening new mines can face extensive permitting requirements and a drawn-out approval process. Environmental concerns and litigation risk can stall projects.
– There is a lack of developed rare earth processing infrastructure in the U.S. Currently there is only one pilot plant operating in Texas.
– Continued high production costs compared to China makes it difficult for U.S. projects to be economically feasible.
– There is a shortage of skilled rare earth professionals and mining engineers in the U.S. due to the industry’s decline.
– Building out the full supply chain domestically, from mining to separation to metal and alloy production, requires major capital investment.
The U.S. government has identified rare earths and critical minerals as essential to economic and national security. To aid the development of domestic production, legislative initiatives like the Rare Earth Element Advanced Coal Technologies Act, the Reclaiming American Rare Earths (RARE) Act, and funding for rare earth research and development have been proposed. However, it will likely take many years before U.S. mines make a significant contribution to global rare earth supply. Continued strategic partnerships between private mining companies, researchers, and the government will help rebuild the nation’s rare earth industry.
Global Rare Earth Reserves
While the U.S. seeks to boost domestic rare earth production, it has limited resources compared to other countries. Here is an overview of current global rare earth reserves according to the latest USGS data:
China
China has the world’s largest reserves of rare earth minerals at approximately 44 million metric tons. The Bayan Obo deposit in Inner Mongolia contains the most valuable heavy rare earth reserves. China remained the dominant global producer in 2020, putting out 140,000 metric tons of rare earths.
Vietnam
Vietnam has emerged as a major new source of rare earths, with reserves of over 22 million tons. The majority is found along its northwestern border with China. Vietnam currently has no domestic production but has signed deals with Japan to jointly develop rare earth operations to supply Japanese manufacturers.
Brazil
Brazil has the third largest reserves with estimates ranging from 21 to 48 million tons of rare earth elements. The main deposits are associated with laterite clay deposits. Brazil was a significant producer in the 1980s and 1990s but production stalled due to lower Chinese prices. There is renewed interest in restarting production.
Russia
Russia holds just over 12 million tons of rare earth reserves. These are found primarily around the Kola Peninsula near Finland and in Western Siberia. Russia was the world’s second largest producer but now mines only 2000 tons per year, all from the Lovozero loparite deposit.
India
India has approximately 6.9 million tons of reserves, mostly located along its southern coastlines. The country has historically been a big exporter of monazite mineral sands containing rare earths. India relies largely on obsolete separation technology and outdated facilities. Upgrading its capabilities is a priority.
Australia
Australia holds around 3.2 million tons of economic REE reserves. Major deposits include Mount Weld, Nolans Bore, and Dubbo Zirconia. The Mountain Pass mine in the U.S. sources much of its ore from Australia’s Mount Weld deposit. Australia was the second largest producer after China in 2020.
United States
The United States has approximately 1.5 million tons of rare earth reserves. While small compared to leading sources, interest is growing in U.S. domestic resources to improve supply chain security. The Mountain Pass mine in California holds the most promising U.S. reserves.
Conclusion
Rebuilding an integrated domestic supply chain for rare earth elements is crucial for the United States to reduce dependence on imports for these critical minerals. While new mines are starting up, the U.S. still has a long way to go to catch up with China in rare earth production and processing capabilities.
Leading the charge in U.S. rare earth mining projects are MP Materials with the reopened Mountain Pass mine in California, Texas Mineral Resources Corp and USA Rare Earth LLC with Round Top Mountain in Texas, and Rare Element Resources developing the Bear Lodge project in Wyoming. However, all these projects face challenges like permitting delays, financing needs, and stiff competition from China’s low costs. Strategic government support and private sector investment will be key to making domestic rare earth production economically viable and securing America’s mineral independence.
