TORONTO, Nov 8 (Reuters) – A handful of Canadian, German and Australian critical mineral explorers plan to command premium prices for key metals used in electric vehicles, promising quality and consistency in exchange for shifting reliance away from China, the dominant producer and price-setter.China controls 95% of the production and supply of rare earth metals, integral to manufacturing magnets for electric vehicles (EVs) and wind farms, and this monopoly has allowed China to dictate prices and stir turmoil among end users through export controls.Now, mining companies such as TSX-listed Aclara Resources (ARA.TO) and Australia’s Ionic Rare Earths (IXR.AX) are discussing plans that may loosen China’s grip on the critical minerals market, moving towards market-determined prices, company officials told Reuters.Canadian miner Neo Performance Materials (NEO.TO) and Germany’s Vacuumschmelze are also discussing similar plans, people familiar with the matter said. The two companies did not offer comment when reached by Reuters.”The controls on strategic minerals (by China) continues to escalate, it comes as no surprise if rare earths are next,” said Ramon Barua, CEO of Aclara Resources, which is developing a heavy rare earth project in Chile.Aclara is looking to mine heavy rare earth metal, such as dysprosium, and is in talks with original equipment manufacturers (OEMs) for a premium pricing as part of a long-term offtake deal.The previously unreported plans come as the miners seek to benefit from the Group of Seven (G7) countries’ move to incentivize miners and automakers to produce and procure critical metals domestically or from friendly nations.In exchange, these miners expect end users to pay a premium.They argue that geopolitical tensions between the West and China risk the reliable supply of rare earth minerals. If China persists with export restrictions, as it has with commodities like as germanium and graphite, supply could be further compromised.Rare earths, a group of 17 elements used in various products including EVs, wind turbines, and consumer electronics due to their magnetic and electronic properties, garnered renewed attention after Beijing last month announced export permit requirements for some graphite products from December to protect national security, citing national security concerns.For instance, the current price of neodymium, used to make the most powerful magnet in the world, varies between $73 to $520 per kg and companies say ex-China prices could be 30% more than the current quoted price.Aclara’s Barua said that Western supply of rare earth elements will not develop if it depends on Chinese prices.”The West will be able to supply environmentally responsible and traceable rare earths, but the cost structure is different to the Chinese and hence it comes at a premium,” he said, adding that the additional cost to OEMs by sourcing rare earths from Western companies would be negligible.IRA LEVERAGEThe miners believe…
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