American Rare Earths at new high on US ‘critical minerals’ supply ‘emergency’

American Rare Earths Ltd (ASX:ARR) has surged to a new two-year high on a new US Presidential Executive Order declaring a national emergency that the US needs to increase its related mining and processing capacity. With the US having no domestic production for 14 of the ‘critical minerals’, the Executive Order stated the “importance of cooperation on supply chain issues with international partners and allies”. ARR is very well-placed to benefit from the decree with its strategic rare earth assets in Arizona and Wyoming, including the La Paz Rare Earths Project and recently acquired Laramie asset respectively. Shares up 60% Buoyed by the strategic value of these projects to the US Government, investors responded positively with shares as much as 60% higher to A$0.10, a new two-year high, on strong volume of more than 100 million mid-afternoon. The two prevailing political parties in the US share consensus that China plays too large a role in US supply chains. ARR non-executive chairman Creagh O’Connor said: “This includes source material used to manufacture green technology such as electric vehicles, offshore wind turbines and solid oxide fuel cells all precious to the left side of the aisle; as well as weapons and other Defence Department items that motivate the political right wing.” Intent to strengthen capabilities The intent of the new Executive Order is to strengthen US domestic mining and processing capabilities immediately. This aligns with the ARR strategy which has its US team securing R&D relationships on cutting edge and very promising new processing technology. ARR’s US-based board and management team are well-positioned to take advantage of the strategic initiatives being offered by the US Government. “Underpins” projects O’Connor said: “We believe that the latest presidential decree underpins the attraction and potential value of our projects as the only Australian listed company with strategic rare earth assets in Arizona and Wyoming.” Leading American universities will soon be testing ARR project feedstock in processes shown to harvest much higher percentages of the elements than previous processes. Success with this work could mean producing significantly more oxide material than previously expected and US Department of Energy grants could help fund the university R&D, saving ARR substantial costs. Bipartisan push President Trump is not alone in participating in the critical materials' geopolitical drama. In the US, Senate Democrats have published a pro-domestic REE mining policy position in their strategy to address the climate crisis. The US House of Representatives has a bipartisan caucus with similar support for REE mining and House Democrats have a policy manifesto in support as well. There are complementary bills moving through US Congress - The Onshoring Rare Earths Act and the Reclaiming American Rare Earths Act - and both contain key elements that help accelerate ARR projects in the USA. Path “becoming well-paved” O’Connor added: “Specifically, these bills create comprehensive tax incentives and grant programs to encourage investment in and development of US-based rare earth and critical mineral mining, processing and production. “The US Government is creating a significant market push. “The path to commercialise opportunities for ARR in rare earths and scandium is becoming well-paved. Our US leadership team is more enthusiastic than ever.”