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The recent development of a new mineral deal between US and Ukraine is big news, as US makes strategic moves to limit it’s reliance on China for rare earth. China currently dominates the global supply chain for rare earth at almost two thirds of global production. Rare earth’s significance and relevance to numerous industries, from battery production in EV’s to being used in catalytic converters, helping create metals for aircraft engines, smart phones, visual displays in TV’s and PC monitors MRI scanning systems and X-Ray machines, Wind turbines and Military. Rare Earth is absolutely invaluable for the modern world we live in.

So just how quickly could the US secure rare earth deposits from the Ukraine into the supply chain in the USA?

Exploration studies can take up to four years, followed by another year in feasibility studies. Much of the critical metals mapping is over three decades old to date. Then there is the construction the plants and mines themselves. Estimates are 40% – 50% of Ukrainian deposits are also currently inside of Russian occupied territory. This presents complex challenges. It’s clear that although this deal has caused major disruption to global rare earth prices that will likely eventually hit the global supply chain and challenge China as the main producer and exporter, it could be several years at best before this is a realistic scenario. There are also other new potential players in the Rare earth world with Brazil being poised to have the second largest reserves in the world. Brazil is quickly positioning itself to emerge as a crucial player in the global Rare earth market.

Rare earth is becoming a hot commodity. And is still relatively difficult to invest in directly outside of Chinese markets. It’s a far more complex market dynamic than investing in Gold or Copper. However, there are some avenues to invest in this market such as, Exchange-traded funds (ETFs) specifically those focused on strategic metals. Van Eck rare earth and strategic metals ETF (REMX), Ucore Rare Metals Inc (TSX.V: UCU) (OTCQX: UURAF), Rare earth stocks/invest directly with companies like Lynas Rare earths, MP Materials. Physical access via Futures and options is also difficult, but possible on certain exchanges. Rare earth can add great diversity to a commodities portfolio for those with higher risk appetites and comfortable in volatile environments.

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