Canada to begin processing rare mineral used to power electric vehicles

Canada begins processing rare mineral used for EVs WATCH: Saskatchewan is getting $16 million from the federal government to process a rare element used for electric vehicles.

Saskatchewan is getting $16 million from the federal government to process a rare mineral.

The Saskatchewan Research Council (SRC) is set to process 2,000 tonnes of bastnaesite — a mineral used to create magnets for the motors for electric vehicles.

Two bags of the bastnaesite, small red rocks, were on display at the SRC Saskatoon office where the government made the funding announcement.

"These rocks, these ores are going to be critical to the energy transformation and will make Canada an energy powerhouse," said Mike Crabtree, SRC president and CEO.

Crabtree held up a metal block to show what the minerals beside him will get turned into.

"This little ingot is sufficient to produce the magnets for five electric vehicles," Crabtree told the crowd.

Once all the SRC's bastnaesite is processed, it could power more than 62,000 vehicles.

"Lithium is the gas tank of an electric vehicle. Rare earths make the engine. No engine, no electric vehicle," Crabtree said.

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," Crabtree said.

Jonathan Wilkinson, Canada's minister of energy and natural resources, said it's important the processing gets done at home.

"Critical minerals are the natural gas of the future, in the sense that they are going to be integral to a whole range of products that we need. We cannot be fully dependent on China for that," Wilkinson said.