New Funding Initiatives Propel U.S. Towards Greater Self-Sufficiency in Critical Minerals - Seite 2

This progress comes months after Ares closed a $10.5-million financing, using the funds to complete the full payment to the plant manufacturer to begin fabrication. The company's ongoing diamond drilling program has assisted Ares' technical staff to define the extents of fluorspar mineralization and has aided in delineating the placement and design of ramps to facilitate mining operations scheduled for later in 2024.

Another critical required for the ongoing energy transition are rare earth magnets, which are expected to see global demand grow five-fold by 2040. Currently the most promising domestic project is being developed by MP Materials Corp. (NYSE:MP), which is already producing magnet precursor materials in a North American pilot facility. Recently, MP received a $58.5 million award to advance its construction of the USA's first fully-integrated rare earth magnet manufacturing facility in Fort Worth, Texas. As part of a Section 48C Advanced Energy Project tax credit allocation administered by the Department of Energy, MP Materials is set to apply the funds to the manufacturing facility which began construction in April 2022, and expects to commence commercial production of precursor materials this summer, and finished magnets by late 2025.

MP has already secured a buyer, as it sets off to supply these products to General Motors, to support its North American EV production. MP will obtain the raw materials for the factory from its rare earth mine and separation facility in Mountain Pass, California—the only large-scale and operational site of its kind in the U.S.

"[In 2023] we exceeded 40,000 tons of REO production for the third consecutive year, achieved first production and sales of NdPr, and added substantial depth to our team and capability set," said James Litinsky, Chairman and CEO of MP Materials. "Our magnetics division completed construction in Fort Worth and began trial production of rare earth metal."

Wanting to make its mark as a global leader in critical mineral production with a focus on uranium, rare earth elements and heavy mineral sands, Energy Fuels Inc. (NYSE-A: UUUU) (TSX: EFR) recently announced the acquisition of Base Resources Limited for $240 million to create an enhanced critical minerals company. Key to the deal is Base Resources' world-class, advanced-stage, low-cost and large-scale Toliara heavy mineral sands project.