The rare earth conversation often focuses on supply volume, but Ram\u00f3n Bar\u00faa Costa emphasizes a critical distinction: Not all rare earths are created equal.<\/p>\n\n\n\n
Costa, CEO of Aclara Resources, a Toronto-based rare earths developer, explains why it\u2019s so important for North American companies to understand the unique scarcity and sourcing challenges of heavy rare earth elements like dysprosium and terbium, especially as demand surges in EVs, wind power and defense; how to create a stable supply of heavy rare earths; and why it\u2019s critical to take an international approach.<\/p>\n\n\n\n
It’s a common mistake to speak broadly about rare earths without distinguishing between the individual elements. Each rare earth has different availability, applications and strategic importance\u2014and lumping them together obscures critical nuances.<\/p>\n\n\n\n
Today, demand is being driven primarily by rare earths used in permanent magnets, which are essential to the performance of electric vehicles. Without them, EV technology simply isn’t competitive. These magnets are also vital in wind turbines and defense systems, further amplifying their strategic value.<\/p>\n\n\n\n
Of the 17 rare earth elements, only four are used in permanent magnets: two light rare earths\u2014neodymium and praseodymium, and two heavy rare earths\u2014dysprosium and terbium. The heavy rare earths are especially scarce. In nature, light rare earths outnumber heavy ones by a ratio of about 150 to one.<\/p>\n\n\n\n
The U.S. Department of Energy has identified dysprosium as the single most critical of all rare earths, and for good reason. The best sources of heavy rare earths are ionic clays, where the neodymium\/praseodymium to dysprosium\/terbium ratio is closer to 10 to one\u2014a far more balanced mix. These clays also have simple metallurgy, making extraction easier and more cost-effective.<\/p>\n\n\n\n
Ionic clays are rare, particularly outside of China and Southeast Asia. We estimate they account for less than 1 percent of known rare earth deposits outside of China. This is why China holds such a dominant position in the supply of heavy rare earths\u2014they control most of the world\u2019s ionic clay resources.<\/p>\n\n\n\n
The world is not lacking in rare earth deposits, but many have complex metallurgy and low concentrations of the most in-demand elements. Most will never be viable producers.<\/p>\n\n\n\n
For North America to secure a stable supply of heavy rare earths, the focus must shift to identifying and developing ionic clay deposits\u2014the most promising and strategic source of these critical elements. Aclara is developing two of the only ionic clay deposits outside China, with a clean-tech, ESG-forward approach to extraction and plans for U.S.-based separation.<\/p>\n\n\n\n
Aclara stands out as one of the most promising alternatives to China\u2019s dominance in heavy rare earth elements because of a unique combination of geology, technology, strategy and sustainability.<\/p>\n\n\n\n
First, we\u2019re developing two exceptional ionic clay deposits in Brazil and Chile \u2014 among the very few of their kind outside of China. These formations closely resemble the ionic clays that have made China the leader in heavy rare earth production, with high concentrations of critical elements like dysprosium and terbium.<\/p>\n\n\n\n
Second, we\u2019ve developed proprietary, clean extraction technology designed specifically for these clays. Our approach is environmentally, socially and financially sustainable\u2014setting a new standard for rare earth development.<\/p>\n\n\n\n
Third, we\u2019re establishing rare earth separation capabilities in the U.S. This is a crucial piece of the puzzle. While the technology exists, there\u2019s been no feedstock to support heavy rare earth processing facilities in the U.S. Aclara changes that by providing both the raw material and the know-how to finally make these facilities viable.<\/p>\n\n\n\n
Fourth, our shareholder base gives us a solid foundation for long-term growth. Hochschild Mining, with deep expertise in sustainable mining, holds a 57 percent stake. CAP S.A., Chile\u2019s leading iron ore producer, holds another 10 percent. These are experienced industrial operators committed to high standards of governance and long-term value creation\u2014the ideal partners to build resilient and responsible critical minerals supply chains.<\/p>\n\n\n\n
Finally, sustainability is at the core of everything we do. Our operations emphasize water recirculation, carbon footprint reduction and full reforestation. But sustainability also means social responsibility. We work hand-in-hand with local communities to foster shared development.<\/p>\n\n\n\n
By integrating world-class resources, clean-tech extraction, U.S.-based processing and an ESG-first mindset, Aclara is well-positioned to help de-risk North America\u2019s rare earth supply chain and support the transition to cleaner, smarter technologies.<\/p>\n\n\n\n
Meeting the sheer volume of rare earths required to support the global transition to electric vehicles, renewable energy and advanced defense technologies is going to be incredibly difficult. Demand is growing at such a rapid pace that new mines alone won\u2019t be able to keep up. Soon, rare earths will be a constrained resource\u2014and only those with forward-thinking, integrated strategies will secure reliable supply.<\/p>\n\n\n\n
At Aclara, we believe credibility as a supplier comes from making the path to permanent magnets easier for OEMs and end users. That\u2019s why vertical integration is at the heart of our strategy. It\u2019s no longer enough to simply be a miner. Customers don\u2019t want to piece together the supply chain themselves\u2014they need a one-stop solution, from mine to magnet.<\/p>\n\n\n\n
Our strategic partnership with Vacuumschmelze is key to this approach. We\u2019re already developing alloy products to meet their specifications, ensuring alignment with the exact needs of downstream industries.<\/p>\n\n\n\n
Geography also plays a critical role in de-risking supply chains. Our integrated model spans Chile, Brazil and the U.S.\u2014three stable, aligned jurisdictions\u2014working together to support a secure, transparent pipeline of critical materials.<\/p>\n\n\n\n
On the ethical front, we firmly believe that how we extract these materials matters just as much as what we extract. Aclara\u2019s extraction method is fundamentally different from traditional mining. We don\u2019t use explosives, nor do we crush or mill\u2014which are the two most carbon-intensive stages of conventional mining.<\/p>\n\n\n\n
We fully recirculate water and use a common agricultural fertilizer as our main reagent, which is also recycled. We are committed to reforestation using native species and are deeply engaged with our local communities to ensure Aclara drives shared, sustainable development.<\/p>\n\n\n\n
We aren\u2019t just supplying critical materials\u2014we\u2019re building a new model for how the rare earth industry can operate: cleaner, fairer and fully aligned with the ethical and environmental expectations of the modern world.<\/p>\n\n\n\n
One of the reasons refining and magnet manufacturing remain bottlenecks in the rare earth supply chain is the widespread perception that financial margins are too thin across the value chain. This belief has been largely shaped by Chinese pricing strategies, which don’t always reflect the true strategic value of rare earth materials.<\/p>\n\n\n\n
We take a different view. The value of permanent magnets shouldn\u2019t be assessed purely on cost\u2014but on the transformative performance they enable in advanced technologies.<\/p>\n\n\n\n
Take electric vehicles, for example: Each EV contains roughly $200 worth of permanent magnets, including about $15 worth of dysprosium. That relatively small investment drives a level of efficiency and performance that simply can\u2019t be matched by alternative technologies.<\/p>\n\n\n\n
Without permanent magnets, EVs are significantly less competitive. So, in the context of a $40,000 vehicle, that $200 component is not just worthwhile\u2014it\u2019s essential.<\/p>\n\n\n\n
This illustrates a broader point: The rare earth industry, valued at around $5 billion, is foundational to global sectors worth trillions\u2014including EVs, wind energy and defense. These numbers should prompt serious reflection and, more importantly, action.<\/p>\n\n\n\n
To close the gaps in the Western-aligned rare earth value chain, collaboration is key. Governments, private companies and local communities must work together to de-bottleneck these critical segments. Aclara is committed to being part of that solution\u2014not just through upstream extraction, but by building strategic partnerships and supporting regional refining and magnet manufacturing.<\/p>\n\n\n\n
Our goal is to help create a fully integrated, resilient supply chain that aligns with Western values and meets the rapidly growing demand for high-performance, ethically sourced rare earth materials.<\/p>\n","protected":false},"excerpt":{"rendered":"
In the face of tariffs drama and increasingly difficult global relationships, being able to access rare earth elements matters now more than ever. Insights from the CEO of a Canadian company developing two of the only ionic clay deposits outside China.<\/p>\n","protected":false},"author":3053,"featured_media":369257,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_oasis_is_in_workflow":0,"_oasis_original":0,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","footnotes":"","_links_to":"","_links_to_target":""},"categories":[57708,75],"tags":[],"class_list":["post-369256","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-canada","category-manufacturing"],"acf":[],"yoast_head":"\n