- Defense Metals Corp. is partnering with the Saskatchewan Research Council to bolster the rare earth supply chain.
- This collaboration aims to advance domestic production for key industries
- This partnership also supports the broader Canadian Critical Minerals Strategy to reduce dependence on foreign sources of critical minerals
- Defense Metals Corp. stock opened Friday trading at $0.09
Defense Metals Corp. (TSXV:DEFN) signed a memorandum of understanding to help strengthen Canada’s rare earth element supply chain.
The Vancouver-based mineral exploration and development company is collaborating with the Saskatchewan Research Council (SRC) to utilize their combined experience in the supply and processing of rare earth materials, which are crucial for producing rare earth magnets.
This partnership has three main objectives:
- To explore potential collaborations by leveraging each participant’s capabilities and interests in the rare earth magnet value chain.
- To facilitate discussions on separating Defense Metals’ mixed rare earth carbonates into individual rare earth oxides using SRC’s technology and expertise in design, installation and operation.
- To negotiate a long-term agreement with SRC for the sale and purchase of Defense Metals’ mixed rare earth carbonate.
This collaboration aims to enhance domestic production of rare earth elements vital for green energy and defence sectors, aligning with North American strategic goals.
This partnership also supports the broader Canadian Critical Minerals Strategy, which focuses on developing a domestic industry, reducing dependence on foreign sources of critical minerals, and strengthening national security.
“This memorandum of understanding represents a significant step forward in our goal of becoming part of a secure and sustainable supply chain for rare earth elements in North America,” Defense Metals’ executive chairman, Guy de Selliers, said in a news release. “By working together with the SRC, we believe we can make substantial progress toward closing the rare earth supply chain loop and ensuring the availability of these critical materials for green energy and defence applications that are essential for national security.”
The SRC, Canada’s second-largest research and technology organization, has been providing services and products to 1,400 clients in 22 countries for more than 77 years. Since 2020, its Rare Earth Processing Facility in Saskatoon has received C$71 million in funding from the Government of Saskatchewan and C$30 million in combined funding from the Government of Canada.
C$16 million in funding from the federal government back in August 2024 is being used by the SRC to process a rare mineral – 2,000 tonnes of bastnaesite, used to create magnets for EV motors. The SRC is already processing the mineral monazite and aims to process bastnaesite in the next two years. “No other facility outside of China is capable of doing that,” Mike Crabtree, SRC president and CEO, told CTV News.
Defense Metals Corp. is focused on metals and elements commonly used in the EV market, military, national security and “green” energy technologies.
Defense Metals’ 100-per-cent-owned, 42.6-square-kilometre Wicheeda REE property is 80 kilometres northeast of Prince George, B.C.
Defense Metals Corp. stock (TSXV:DEFN) has a market cap of C$23 million and opened Friday trading at $0.09 per share. Though the stock is down more than 53 per cent since the year began, DEFN stock holds a five-year return of 30.77 per cent.
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(Top image via Defense Metals Corp. on Twitter / X.)
