Comentary by Adrià Calatayud
Plans by General Motors and General Electric to explore the creation of supply chains for rare-earth materials based in North America and Europe could give a boost to companies which own rare-earth projects there or are looking to build them. Listed companies like MP Materials, a U.S. company which owns and operates the Mountain Pass rare-earth mine and processing facility in California, and Toronto-based Neo Performance Materials, which has a rare-earth processing facility in Estonia, could be among the beneficiaries. Moreover, other listed companies such as Lynas Rare Earths, Rare Element Resources, Leading Edge Materials, Pensana, Canada Rare Earth or Texas Mineral Resources are exploring for rare earths, developing mines or planning to build processing plants in North America and Europe and could benefit in the future. China has long dominated global supplies of rare earths, but businesses and governments across the West have been trying to counter it. Last year, China accounted for around 58% of global rare-earth mine production, according to data from the U.S. Geological Survey. GM and GE Renewable Energy said they have signed a nonbinding agreement to develop a supply chain of rare earths and other materials needed for electric vehicles and renewable-power generation. If their plans go ahead, they would provide a major source of demand for those rare-earths projects.
Market Insights are commentary which is independent of the news coverage by reporters at the Wall Street Journal.
Write to Adrià Calatayud at adria.calatayud@dowjones.com