Chair, committee members, panellists, good afternoon.
Let me begin by emphasizing that there's an opportunity for Canadian leadership in this vital strategic sector that we cannot afford to miss. I will focus on three topics: first, the opportunity to build a critical new industry in Canada; second, I will use the Torngat rare earth project in northern Quebec, which I chair, as an example of Canada's opportunity to be a global leader of an industry vital to the low-carbon economy; and third, the important actions that the government can take to realize this opportunity for Canada.
Rare earths are critical to enable the world to transition to a low-carbon economy. They are a group of 17 elements which are critical raw materials because of their technologically advanced and strategic end uses. They are used in lasers, medical scanners, emission-reducing catalysts, fibre optic telecommunications, ceramic capacitors—literally any technologically advanced piece of equipment. However, the most important use to get to a low-carbon economy is to manufacture permanent magnets for electric motors, wind turbine generators and even for the speakers in our smart phones. They are needed everywhere.
Electric vehicles use permanent magnet motors because of their higher efficiency and smaller size and weight. When Canadian auto manufacturers, in fact, all global manufacturers, commit to electrifying their vehicle platforms, they are creating an enormous demand for specific rare earth elements. Canada has the opportunity to develop our own secure supply of rare earths to support Canada's, the United States', and the world's demand for electric vehicles and to do so in an environmentally sustainable fashion.
Today, China supplies in excess of 80% of world demand. We all know that is not a geopolitically acceptable situation.
Torngat Metals is a Canadian-owned company, developing one of the world's largest rare earth ore bodies with the best mix of the particular rare earths needed to make permanent magnets. Torngat's deposits are located in northern Quebec, about 240 kilometres northeast of Schefferville. It is Torngat's strategy to prioritize environmental sustainability throughout all of its operations and emphasize consultation and collaboration with indigenous governments and communities on all aspects of the project.
The rock containing rare earths will be mined in a totally environmentally sustainable manner using wind power as much as possible and using the Lockheed Martin hybrid airships to transport the rare earth concentrate to Schefferville, then by rail to Sept-Îles and to the processing plant in the Bécancour industrial park between Montreal and Quebec City.
Producing the separated rare earth oxides is where the value is created, and Torngat is collaborating with world-leading technology partners to assemble the expertise needed to produce these specialty chemicals and to grow this expertise and related R and D in Canada. Torngat targets to produce cost-competitive separated rare earths in Quebec in 2025-26.
Rare earth projects such as Torngat's need support to get into production to meet Canada's needs and the industrialized world's needs, so let me offer four recommendations for Canada:
First, set a near-term deadline for NRCan and ISED to complete and publish their critical metals and rare earths strategy. Second, increase federal government efforts to collaborate with Europe, the U.S. and Japan on building new supply chains outside of China. Third, expand the criteria with existing NRCan and ISED programs to enable rare earth projects to qualify and apply for funding. Fourth, provide funding assistance for development projects to bridge the gap between early-stage development and construction financing.
These initiatives would make an enormous impact for these projects to get into production more quickly.
When I read a report of the Government of Australia's commitment to hardwire themselves into the global supply chain using access to their $1.3-billion modern manufacturing fund, and we, in Canada, have the natural resource, are an education nation with highly skilled labour and sit next to the world's largest economic and industrialized country, I can only implore Canada to step up. We cannot afford to miss this opportunity for our country and for our allies.
Thank you, sir.