Molycorp Reopens Rare Earth Metals Mine in California

Got story updates? Submit your updates here. ›

Molycorp, the only U.S. company that produces rare earth metals used in a wide range of electronics and clean energy technology, is reopening its Mountain Pass mine in California's Mojave Desert after a long hiatus. The mine was previously the world's largest source of rare earth elements but was shut down in 2002 due to environmental issues and competition from China, which now produces up to 99% of the global rare earth supply. Molycorp has spent over $1 billion to restart operations at Mountain Pass, which they're calling 'Project Phoenix', in an effort to wean U.S. manufacturers off Chinese imports.

Why it matters

Rare earth elements are critical components in many modern technologies, from smartphones and computers to wind turbines and electric vehicles. By controlling the global supply of these materials, China has been able to create barriers for electronics manufacturing outside of its borders. The reopening of the Mountain Pass mine could help reduce U.S. reliance on Chinese rare earth exports and support the domestic production of electronics and clean energy technology.

The details

Molycorp's Mountain Pass facility is the only active rare earth mine in the United States. The company halted chemical processing at the mine in 1998 following an environmental disaster, and China subsequently ramped up its rare earth production, now accounting for 96-99% of global supply. After spending $1 billion to restart operations, Molycorp has begun mining bastnaesite ore and extracting light rare earth elements like neodymium and europium. The company has also discovered heavy rare earth deposits nearby, which are critical for manufacturing wind turbines and solar cells.

• In 1998, Molycorp halted chemical processing at the Mountain Pass mine following an environmental disaster.
• In 2002, Molycorp closed the Mountain Pass mine due to lower market prices caused by increased rare earth production in China.
• In 2009, China cut its rare earth export quotas from 50,000 to 30,000 tonnes, sending prices on international markets even higher.
• In 2010, Molycorp went public on the NYSE and secured permits to resume mining and manufacturing at Mountain Pass.
• In 2011, Molycorp announced the discovery of a heavy rare earth deposit near its Mountain Pass facility.

What’s next

Molycorp plans to continue hiring and expanding its workforce at the Mountain Pass facility, aiming to reach 200 employees. The company has reported that more than 75% of its Phase 1 rare earth production has already been spoken for by customers.