Living in Wyoming, we are keenly aware of the importance of our extensive natural resources not only to our State, but also to our Country. We have lived through many cycles of boom and bust in our energy sector.
Because of the impact that energy markets have on our budget, State leaders have strived over the years to expand markets for our resources and to diversify our economy. The impact of these market fluctuations on our budget has been reduced by thoughtfully growing the Permanent Mineral Trust funds and their contribution to our State’s budget.
An example of expanding markets for our natural resources with critical infrastructure is the Kern River Natural Gas project. It runs from Opal, near Kennecott, to Bakersfield, California. State leaders, including then Governor Sullivan, John Wold and others, appreciated that an interstate pipeline transporting our natural gas to Western markets was needed.
Until the Kern River Project, no interstate pipeline ran west from Wyoming. The State fought to have Kern River, with its focus on Wyoming gas, selected by the Federal Energy Regulatory Commission over several competing proposals. Wyoming and the Kern River Project prevailed, and the Kern River Pipeline continues to transport significant volumes of Wyoming gas to Western markets.
Today there is a new opportunity for our State to develop another natural resource, Rare Earth Elements (REEs). Wyoming has both identified and proven resources of REEs, which are critical building blocks to our modern lives.
What makes REE’s “rare” is that they do not usually exist in high concentrations sufficient to mine and process them economically. Governor Gordon and the Legislature have appreciated the opportunity that the development of REEs presents to our State. Their leadership has helped position Wyoming to be a leader both nationally and internationally in the mining and processing of REEs.
The Bear Lodge critical rare earth deposit in Crook County is a fully delineated world-class rare earth resource with some of the highest concentrations in the country.
Wyoming-based Rare Element Resources (RER), along with technology leader General Atomics, have invested $170M+ pioneering innovative refining technology and rare earth mine development in our State. This cutting-edge technology is more efficient, cleaner, and produces high-purity REEs.
With support from the Department of Energy and the Wyoming Energy Authority, RER has built a first-of-its-kind $53.6M+ processing and separation demonstration plant in Upton. This plant is a testament to American ingenuity and RER’s commitment to responsible resource development.
As our world has evolved, REEs have become critical to many products in our economy. REEs power everything from smartphones and computers to life-saving medical devices and advanced defense technologies like nuclear submarines, fighter jets, and laser weapons.
Tragically, America currently relies heavily on China for these critical minerals. China recognized the strategic importance of REEs decades ago, and today they control a staggering portion of the market dominance.
This leaves the U.S. vulnerable to supply disruptions, price manipulation, and national security threats. In fact, as recently as December 3, 2024, China banned exports to the U.S. of the critical minerals gallium, germanium and antimony that have widespread military applications, escalating trade tensions after the U.S. cracked down on China's semiconductor “micro-chip” sector.
This is an example of the precarious position the U.S. is in. It's time to break free from this dependence on a foreign adversary for these critical elements. Wyoming is uniquely positioned to lead the way to end this dependence.
Companies like RER support responsible rare earth mining and refining, which can boost our economy and create good-paying jobs in Wyoming. Upton, with its well-earned reputation as "the best town on earth," is already experiencing the positive effects of this burgeoning critical industry.
The recent opening of a 45-room hotel strategically positioned across the highway from RER's Demonstration Plant, reflects the town's growth and optimism for the future.
We can strengthen our national security by reducing our reliance on foreign adversaries and ensure a stable supply of critical minerals for our defense needs. At the same time, we can protect the landscape, while responsibly developing and processing critical elements.
Ultimately, this will allow us to become a world leader in the development and processing of REEs. Wyoming has always valued self-reliance and innovation. Let's harness that spirit to build a more secure and prosperous future for our State and Nation.
The development of Wyoming’s rare earth elements is an exciting time and another opportunity to advance our economy by developing new markets for our natural resources.
Paul Hickey is a Director of Rare Element Resources. He has worked as a lawyer in the energy sector for many years. He represented the State of Wyoming in the FERC proceedings involving the Kern River Pipeline. He has served on the Wyoming Pipeline Authority and Wyoming Water Development Commission. He currently serves on the Dean’s Advisory Board for the University of Wyoming College of Law.
