Québec Stakes its Claim in the Rare Earth Supply Chain

MONTRÉAL, QC – November 18, 2025 – Consolidated Lithium Metals Inc. (CLM) and SOQUEM Inc., a subsidiary of Investissement Québec, have signed a definitive agreement that positions Québec to become a key player in the global rare earth element (REE) market. The agreement will see the two companies collaborate on the development of the Kwyjibo Rare Earth Project, located in Côte-Nord, Québec, with CLM earning up to an 80% interest in the project. This strategic partnership is driven by the growing demand for REEs in electric vehicles, wind turbines, and other clean energy technologies, and Québec’s commitment to securing a sustainable supply of these critical minerals.

Securing Québec’s Position in the Critical Minerals Landscape

The Kwyjibo project isn't merely a mining venture; it’s a cornerstone of Québec's broader strategy to establish itself as a leader in critical mineral production. The province, recognizing the geopolitical significance of securing domestic supply chains, has been proactively investing in the exploration and development of its mineral resources. “This agreement aligns perfectly with Québec’s ambitions to become a major hub for critical mineral processing and manufacturing,” explained a source familiar with the province’s mining strategy. “The Kwyjibo project, with its substantial REE resource, is a key component of that vision.” SOQUEM’s involvement signifies a strong government commitment, providing both financial backing and a streamlined regulatory pathway for the project. The initial phase of the agreement involves C$23.15 million in investments over five years, focused on exploration, permitting, and feasibility studies, with a subsequent option for CLM to earn a further 20% through an additional C$22 million investment for construction and development.

CLM’s Gamble and the Challenges of Rare Earth Development

For CLM, the agreement represents a significant opportunity, but also a considerable undertaking. While the company has demonstrated a willingness to explore critical mineral projects, the Kwyjibo project’s scale and complexity require substantial financial and technical expertise. “It’s a bold move for CLM,” noted an industry analyst. “They’re taking on a project with considerable upfront costs and inherent risks associated with rare earth mining and processing.” Rare earth projects are notoriously challenging due to the complex metallurgy involved in separating and refining the individual REEs. The need for environmentally responsible extraction and processing is also paramount. The Kwyjibo deposit, however, offers a favorable geological setting and potential for efficient extraction due to its IOCG-style mineralization and established infrastructure nearby. Initial resource estimates, based on historical data and recent drilling, indicate a substantial resource base with high concentrations of neodymium and praseodymium, two of the most critical REEs for permanent magnets. However, CLM will need to navigate permitting processes and address environmental concerns to ensure sustainable development.

Balancing Economic Growth and Indigenous Rights

The development of the Kwyjibo project isn't happening in a vacuum. The project area falls within the traditional territory of the Innu of Takuaikan Uashat mak Mani-utenam, and meaningful engagement with the Indigenous community is essential for responsible development. A key component of the agreement is the commitment to negotiate and ratify an impacts and benefits agreement with the Innu. This agreement will outline how the project will address potential impacts on traditional lands, culture, and livelihoods, and how the benefits of resource extraction will be shared with the community. “Genuine consultation and collaboration with the Innu is non-negotiable,” stated a source involved in Indigenous relations in the region. “It’s about ensuring that the project respects Indigenous rights, protects the environment, and creates lasting benefits for the community.” SOQUEM's involvement is expected to facilitate this process, leveraging its established relationships with Indigenous communities and its commitment to responsible resource development. The government-backed entity is expected to help navigate cultural sensitivities and ensure that the project aligns with the principles of reconciliation and sustainable development.

The Kwyjibo project also faces environmental hurdles. Rare earth mining can generate significant waste and potentially pollute water sources if not managed carefully. CLM and SOQUEM are committed to conducting comprehensive environmental assessments and implementing best practices to minimize the project’s environmental footprint. They’re also exploring innovative technologies for extracting and processing REEs in a more sustainable manner. This includes investigating methods for reducing waste, minimizing water usage, and recycling by-products. The success of the Kwyjibo project will depend not only on its economic viability but also on its ability to demonstrate environmental responsibility and social sustainability.

The partnership between CLM and SOQUEM represents a calculated risk and a significant opportunity. If successful, it will position Québec as a key player in the global rare earth supply chain, while also demonstrating a commitment to responsible resource development and Indigenous rights.