Hyperdrive
Automakers Look to Hedge Against China Rare Earth Dominance
- Developer Arafura holds supply talks with European carmakers
- New sustainability and traceability rules add to pressures
This article is for subscribers only.
European automakers are in discussions with Australian rare earths explorer Arafura Resources Ltd. about sourcing elements that help power electric cars from outside China, which dominates global supply.
The miner is developing the A$1 billion ($728 million) Nolans project in Australia’s Northern Territory that will cover as much as 10% of global demand for the type of rare earths used in permanent magnets for electric motors. Crucially, Arafura plans to process ores close to its site, ensuring direct oversight of the treatment of toxic waste products at the project it bought in 2001.