TAMPA, FL, April 06, 2022 (GLOBE NEWSWIRE) — via NewMediaWire — USA Rare Earth LLC, the operator and 80% owner of the Round Top Heavy Rare Earth, Lithium and Critical Minerals Project in Hudspeth County, Texas (“Round Top”), together with its joint venture partner Texas Mineral Resources Corp (OTCQB: TMRC), released the following statement commending President Joe Biden’s Presidential Determination designating domestic mining and critical materials for the production of large-capacity batteries as essential to the national defense under the Defense Production Act of 1950 (DPA).
“We commend President Biden on this important step to support domestic battery mineral production. Establishing a vertically integrated domestic supply chain of these critical materials is necessary for advancing U.S. manufacturing capabilities and increasing national security. USA Rare Earth offers an abundant domestic resource to support the President’s plan for lithium production and processing,” said Thayer Smith, President of USA Rare Earth.
With the DPA Title III designation of strategic materials for batteries, USA Rare Earth is developing the only domestic mining project that contains DPA-designated materials lithium and rare earth elements at a single deposit.
Mr. Smith continued, “USA Rare Earth is developing a fully domestic rare earth mine-to-magnet supply chain, while the lithium at Round Top will support the manufacture of batteries for electric vehicles. These are two essential components not only to the future of electric transportation, but for major defense platforms as well.”
The Defense Production Act
According to the Department of Defense, “the Defense Production Act (DPA), enacted in 1950, provides the President a broad set of authorities to ensure the timely availability of essential domestic industrial resources to support national defense and homeland security requirements.” President Trump designated the full rare earth supply chain as DPA Title III eligible in July 2019. That designation remains in place as President Biden added the new Presidential Determination for strategic and critical materials used in the production of large-capacity batteries for the automotive, e-mobility, and stationary storage sectors, stating that, “To promote the national defense, the United States must secure a reliable and sustainable supply of such strategic and critical materials. The United States shall, to the extent consistent with the promotion of the national defense, secure the supply of such materials through environmentally responsible domestic mining and processing; recycling and reuse; and recovery from unconventional and secondary sources, such as mine waste.”
STRATEGIC IMPLICATIONS OF USA RARE EARTH’S DEVELOPMENT PROJECTS:
Permanent Magnets, Renewable Energy Batteries, Semiconductor Chips
USA Rare Earth is creating a new fully domestic rare earth mine-to-magnet supply chain that will provide rare earth magnets and materials needed to ensure compliance with recent presidential executive orders and DPA Presidential Determinations. Rare earth magnets are necessary for defense, medical devices, green energy, and electric vehicle production. Currently, U.S. companies get most of their battery-grade lithium, rare earth materials, and permanent magnets from China.
In February 2021, the USGS identified Round Top as the largest gallium deposit in the United States. Gallium is a critical semiconductor chip material, and currently there are no U.S. producers of this important material.
In February 2022, the U.S. Government issued final approval of the updated Critical Minerals List. USA Rare Earth will bring into domestic production nearly half of the critical minerals identified by the USGS, including gallium, which tops the new Critical List.
Pre-Feasibility Study Update
SGS Bateman, a leading mining engineering firm, has been engaged as the prime engineer to complete the pre-feasibility study. SGS, working with USA Rare Earth’s experienced technical team, remains on track to complete the Pre-Feasibility Study in the 3rd Quarter 2022.
About USA Rare Earth, LLC
USA Rare Earth, LLC owns an 80% operating joint venture interest in the Round Top Heavy Rare Earth and Critical Minerals Project located in Hudspeth County, West Texas.
The Round Top Deposit hosts 16 of the 17 rare earth elements, plus lithium, gallium and other high-value tech minerals. Round Top hosts nearly half of the 50 minerals and metals on the U.S. Government’s Critical Minerals List with more than 60% of the materials from Round Top expected to be used directly in green or renewable energy technologies. In 2020, USA Rare Earth opened its rare earth and critical minerals processing facility in Wheat Ridge, Colorado, and in April 2020, USA Rare Earth acquired the neodymium iron boron (NdFeB) permanent magnet manufacturing system formerly owned and operated in North Carolina by Hitachi Metals America, Ltd.
About Texas Mineral Resources Corp.
Texas Mineral Resources Corp.’s focus is to develop and commercialize, along with its joint venture partner USA Rare Earth LLC, its Round Top heavy-rare earth, technology metals, and industrial minerals project located in Hudspeth County, Texas, 85 miles southeast of El Paso. Additionally, the Company plans on developing alternative sources of strategic minerals as well as developing other domestic mining projects in more traditional metals. The Company’s common stock trades on the OTCQB U.S. tier under the symbol “TMRC.”
For more information about USA Rare Earth, visit www.usare.com.