Canada Rare Earth has announced significant steps to expand its operations in the rare earth sector by signing two key agreements in Southeast Asia. The Canadian company has entered into a memorandum of understanding (MOU) with a Laos-based private firm to acquire a 70% stake in a fully permitted rare earth refinery in Northern Laos. Additionally, the company has secured another MOU to co-develop an advanced exploration-stage rare earth mine in the same region, focusing on ion adsorption clay rare earths.

The refinery acquisition is particularly noteworthy as it marks a significant leap in Canada Rare Earth's refining capabilities. Built 12 years ago, the refinery has yet to be operational due to policy changes in Laos that had previously hindered the processing of rare earths. However, with the Lao government now reversing its stance and supporting the processing of locally sourced rare earth concentrates, the refinery’s restart is set to move forward. The plant, with an annual production capacity of 3,000 tonnes of rare earth oxides, including both light and heavy rare earth elements, is expected to be refurbished and ready for commissioning by the fourth quarter of 2025.

This move comes as the Lao government looks to increase in-country processing of rare earths, which could provide significant economic benefits given the country's growing rare earth mining industry. New sources of rare earth concentrates from ion adsorption clay deposits in Northern Laos are now available, providing a steady supply for the refinery and minimizing the risk of concentrate shortages.

Canada Rare Earth CEO Peter Shearing emphasized the importance of selecting the right partners for this venture. The company is in talks with various potential investors and offtake partners to ensure favorable financing terms and secure long-term supply agreements for key rare earth elements like neodymium, praseodymium, dysprosium, and terbium. Shearing stated that the partnership decisions will be crucial for the refinery's success, both commercially and strategically.

In addition to the refinery acquisition, Canada Rare Earth has also secured rights to enter into a 70/30 joint venture for the development of a rare earth mining project in Laos. This project is in an advanced exploration stage and focuses on ion adsorption clay, a significant source of rare earth minerals.

This expansion follows Canada Rare Earth’s establishment of operations in the Democratic Republic of Congo through its subsidiary, Simba Essential Minerals, in 2024. These moves position Canada Rare Earth as a growing player in the global rare earth market, particularly as demand for these critical minerals continues to rise in industries such as electronics, renewable energy, and defense.

With these new ventures, Canada Rare Earth is poised to play a pivotal role in the global rare earth supply chain while supporting the economic development of Laos through job creation and infrastructure investment.