You Can’t Recycle Your Way Out: The New York Times Sidesteps the Hard Reality of Rare Earths

[DOC]

Recycling alone can't solve rare earth processing bottlenecks. Why domestic refining capacity matters more than mining or waste recovery. (read full article...)

 

[Deven]

Recycling alone can't solve rare earth processing bottlenecks. Why domestic refining capacity matters more than mining or waste recovery. (read full article...)

Hi Daniel,

I agree that “China’s rare-earth dominance” is real and not exaggerated.
I agree that the core of the problem is processing.
I agree that recycling alone can not solve the problem.

However, recycling seems to me to be one of the fastest and most economically approachable routes to begin mitigating the problem while other solutions are ramped up.

(As you know and likely agree) it took China decades to secure and scale rare earth mining and processing, and expecting the West to replicate any substantial portion of this capacity in the near term using traditional approaches would be fanciful.

I propose that the crisis will need to be addressed by employing innovative and revolutionary technologies which change existing paradigms and open up new possibilities for feedstock and the economics of production. New solutions for the near-to-mid term will need to be able to exploit already existing but until now under- or un-utilized sources such as industrial and electronic waste.

I further propose to you that the two companies below, Ucore and Metallium, may be capable of meaningfully contributing to mitigating the vulnerabilities which presently endanger the world’s defense systems, tech economies, political autonomy, and the progression of modern life itself.

• RapidSX from Ucore Rare Metals (OTCQX: UURAF or TSXV:UCU), https://ucore.com
• Flash Joule Heating (FJH) from Metallium Limited (formerly MTM Metals) (OTCQX: MTMCF or OTCQX ADR: MTLMY or ASX: MTM), https://metalliuminc.com

RapidSX features simplified flowsheets and significantly accelerated separation timelines compared to conventional solvent extraction which supports faster domestic deployment. It is feedstock-agnostic for both light and heavy rare earths, and entails a modular, repeatable system architecture designed for rapid scaling as demand and policy frameworks evolve. Instead of large complexes of slow, solvent-filled settling tanks, Ucore’s system uses computerized columns and an array of sensors to drastically accelerate the separation process.

In addition, if I understand the technology correctly, it seems FJH may be an ascendant (yet nascent) alternative to what you describe as the “solvent-extraction infrastructure to turn theory into tonnage”.

Flash Joule Heating (FJH) is an innovative and economically disruptive metal recovery method which substitutes for other historic hydrometallurgy and pyrometallurgy alternatives. By rapidly heating materials in a controlled atmosphere (3000 degrees+ C in milliseconds), FJH effectively extracts metals from a wide variety of mediums. It simplifies complex flowsheets, eliminates acids and smelting, and enables high-margin recovery from challenging waste and ore streams. It is an incredibly elegant solution (IMHO) with advantages such as

• feedstock agnosticism/versatility
• smaller plant footprints
• expanded siting options
• rapid deployability
• nimble scalability
• lower capital and operating costs
• diminished environmental hazards
• attractive economics
• (For example, initial capital expenditure can approach 5% or less of a traditional rare earth refinery and FJH requires only $30-$50 USD of electricity per ton of feedstock input.)

Metallium has two core business units, but relative to waste recycling they will operate a ‘Build-Own-Operate’ model in which they purchase feedstock, own and operate the processing facility, and retain full economic interest in the recovered metals. Their first processing hub in Houston Texas is now operational, and they already have 5 additional hub locations earmarked in the US, and further expansion ambitions for Asia-Pacific, Europe, and the Middle East. The company contends that even a smaller 1-to-10 ton per day operation can be highly profitable meaning that the modularity and scalability of their technology can produce positive cashflow with modest plant sizes while these same plants are simultaneously built out to higher capacities.

It seems like a rational pathway for attempting to swiftly begin mitigating the China-triggered global supply chain crisis while other longer-timeline and more comprehensive approaches are pursued in parallel.

I’d be interested to hear your perspective, however.

Cheers.

 

[John]

Hi @Deven

Agree with everything you’ve said. One thing we’ve learned in this sector is to stay cautious around new technologies and new entrants until something is proven at commercial scale, the execution risk remains high.

It’s also worth remembering that China has been working on “new tech” in rare earth processing for decades, yet the bulk of their separation still relies on solvent extraction. That doesn’t mean innovation isn’t important just that scaling and operational know how tend to matter more than the headline technology itself.