Railveyor CEO Tas Mohamed discusses the current state of key US minerals and the developments in strategies to unlock stable supply.
Competition for important US minerals requires accelerated production from local mines, but doing this on a sustainable and large scale means using smart and innovative technologies.
The US is accelerating efforts to increase domestic production of copper, lithium, niobium and rare earths, promote energy transition, protect national security and support high-tech manufacturing. These important minerals are not options. These are essential for defense, infrastructure, energy and next-generation technologies.
To put that into perspective, today’s single artificial intelligence (AI) data centers demand just as much power as 100,000 households today. This is just the beginning. According to the IEA, future AI data centers could consume more than 20 times more.
Electric vehicles (EVs) account for one of the 10 car sales in the US, but globally, it is expected to reach 25% of all car sales this year, growing to 40% by 2030. Another global growth market is in satellites, with Goldman Sachs expected to grow seven times by 2035 with over 70,000 satellites expected to be released.
All of these technologies rely on important minerals and rare earth elements such as neodymium, praseodymium, anomalies, and terbium. However, supply lags behind demand, and years of investment in the mining sector have created a major gap over the years. McKinsey estimates that investments of 5tr or more will be required by 2035 just to meet the growing demand.
Rethinking US mineral strategy
In this context, geopolitical instability forces the United States to rethink its key mineral strategies. Current statistics show that China manages the production of 77% of the world’s sophisticated rare earth materials, 46% of copper and 57% of lithium. This poses a great risk to the US supply chain, and the current US administration is aware of this.
Through the executive order “Unleashing American Energy,” the United States has pledged to expand mine exploration and development across the country. It aims to accelerate permitting, facilitate regulation, and allow for faster development of critical mineral projects. Key agencies such as the Department of Defense, the Department of Energy and the Department of Interior are empowered to support this shift.
We will innovate the future path
The mining of these important minerals is becoming increasingly challenging. The deposits are deeper, more remote and have lower grades. As a result, mining engineering and metallurgical processing become more complicated. As fewer young people enter the mining industry, labor shortages are growing. Additionally, there is growing demand for environmental, social and governance (ESG) policies, which is a top priority for mining executives.
As a result of these multiple constraints, the mining sector is currently leaning heavily towards innovation. For example, companies like Ivanhoe Electric are turning their eyes to the mining, equipment, technology and services (METS) sector for high impact solutions. Their Santa Cruz project utilizes the latest mining technology to promote faster development and more efficient processing.
Niocorp’s development plays a key role in unlocking important US minerals. By leveraging advanced extraction and processing technologies, NIOCORP will help ensure domestic supply of niobium, scandium and rare earths, which are essential for clean energy, defense and high-tech manufacturing.
From AI and advanced analytics to autonomous transport systems, innovation helps the industry become cleaner, safer and more productive.
Proven technology
The good news is that many of these technologies are already available and well-proven. One of the most promising opportunities is the electrification of mine transport, indicating major changes within the sector. Several new US mining projects have energy-efficient electric transport systems enhanced by automation and digital technologies to completely rethink the layout of the mine, offering both capital costs and long-term flexibility.
Innovative hauling systems that minimize infrastructure requirements have proven to allow faster and more flexible deployment while reducing both scope 1 and scope 2 emissions. They also provide the agility to scale production without committing to expensive, energy-intensive infrastructure from the start.
Safe and easy to operate
Mining operators benefit from the simple and robust design of these systems, making them suitable for working in challenging environments of underground mining. They are safely operated and maintained and require only standard technical training typical of underground labor.
These technologies will increasingly be replaced by alternatives to diesel-powered equipment, allowing mines to achieve sustainability goals, even deep and complex ore bodies, while achieving ambitious production targets.
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