Defense Metals signs rare earth MOU with Hanwha
Defense Metals (TSXV: DEFN) has signed a memorandum of understanding (MOU) with Hanwha Ocean, a South Korea-based shipbuilding and marine engineering company, to explore the supply of rare earth elements.
Under the MOU, which is non-binding, the companies will evaluate a potential agreement where Defense Metals would sell rare earth materials from its Wicheeda project in British Columbia to Hanwha, supporting the company’s manufacturing and supply chain.
Hanwha is also considering an investment in Defense Metals, subject to due diligence and further negotiation.
“This MOU is an important step in advancing a made-in-Canada critical minerals supply chain supporting strategically important defence and maritime industries,” Defense Metals CEO Mark Tory said in a news release.
“Rare earth elements are increasingly recognized as foundational materials for next-generation defence technologies and advanced manufacturing,” he added.
A spokesperson for Hanwha said the company is looking to strengthen its ties to Canada’s critical minerals sector as the federal government moves to modernize its naval fleet.
The agreement comes as Hanwha competes for Canada’s multibillion‑dollar submarine program and follows other Canadian partnerships, including MOUs with the Automotive Parts Manufacturers’ Association and Algoma Steel.
Quad partners unveil $20B critical minerals plan
The Quad partner nations — United States, Japan, Australia and India — unveiled plans to invest $20 billion to further support the buildout of a reliable critical minerals supply chain in an effort to counter China’s dominance.
The Quad Critical Minerals Initiative announced on Tuesday sets out the framework for the nations to work together through economic policy tools and coordinated investment to accelerate the development of a secure supply chain of minerals powering advanced technology, defense systems, batteries and AI.
To support this initiative, the Quad partners intend to mobilize $20 billion in government and private-sector funding of the entire critical minerals supply chain, which includes mining, processing and recycling, the US Department of State said in a statement.
This, the Department said, would entail identifying projects with a so-called “Quad nexus” — those located in partner countries, operated by companies headquartered in Quad partner countries, or supplying Quad markets — that could fill gaps in the critical minerals supply chain.
The funding would involve various mechanism such as export credit agencies, development finance institutions, mobilization of private capital, or other public supporting tools, including guarantees, loans, equity participation, insurance, subsidies and offtake agreements.
Under the initiative, the Quad nations would share information on good practices and technical approaches to permitting, licensing and regulatory processes, cooperate on technology development and capacity building related to geological mapping and resource assessment, and consider coordinated measures to address non-market policies and unfair trade practices.
On the recycling front, the partners will also work together to improve the recovery and use of critical minerals from e-waste and other scrap materials.
The announcement came on the back of a meeting in New Delhi between the nations’ foreign ministers. In addition to the critical minerals initiative, the Quad partners also entered an Indo-Pacific energy security pact aimed at strengthening regional fuel and energy supply chains. Earlier that day, US and India also signed a framework agreement on critical minerals.
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