Saskatchewan received $16 million from the federal government to process a rare element.

The Saskatchewan Research Council (SRC) is set to process 2,000 tons of bastnäsite— a mineral used in making magnets for electric vehicle motors.

Two bags of bastnäsite, which are small red rocks, were displayed at the SRC office in Saskatchewan where the government announced the funding.

Mike Crabtree, the chair and CEO of the Saskatchewan Research Council, said, "These rocks, these ores will be crucial for the energy transition and will make Canada a power hub."

Crabtree lifted a metal block to show what the minerals beside it will turn into.

He told the crowd, "This small alloy is enough to produce the necessary magnets for five electric vehicles."

After processing all of the bastnäsite at SRC, it could power over 62,000 vehicles.

Crabtree said, "Lithium is the fuel tank in electric vehicles. The rare minerals make the engine. No engine, no electric vehicle."

SRC is already processing monazite mineral and aims to start processing bastnäsite in the next two years.

Crabtree said, "There is no other facility outside of China capable of doing this."

Jonathan Wilkinson, Canada’s Minister of Energy and Natural Resources, stated that it is important to process domestically.

Wilkinson said, "Critical minerals are the natural gas of the future, meaning they will be an integral part of a full range of products we need. We cannot rely entirely on China in this regard."