European automakers looking to source rare earths for EV motors from Australia

Bloomberg has reported that European automakers are looking to Arafura Resources Ltd., an Australia-based miner, as a source for rare-earth elements that help power electric vehicles.

Arafura’s $728 million Nolans project is expected to meet up to 10% of global demand for rare earths used in permanent magnets for electric motors. The ores will be processed close to the site to ensure direct oversight of toxic waste treatment.

China’s control of two-thirds of mining and 85% of refining of rare earths, according to BloombergNEF, and the importance of these elements in defense applications are spurring the automakers’ efforts to procure them from other sources.