The Minerals Security Partnership (MSP) formed last year by 14 governments aims to ensure adequate supplies of minerals such as lithium and rare earths to meet zero-carbon goals.

The Vancouver-based miner aims to produce an average of 25,000 tonnes of rare earth oxides per year, approximately 10% of the world’s current production.

MNP will sell the assets and distribute proceeds to creditors

US Energy Secretary Jennifer Granholm said the world is up against a dominant supplier of critical minerals willing to exploit its position for political gain.

China took control of almost all rare earth element processing and magnet manufacturing, in the space of about 10 years.

Vietnam plans to restart its biggest rare-earths mine next year with a Western-backed project that could rival the world's largest.

German officials visited Namibia in December and considered investing there as they search for new energy sources.

Norway could become the first country to start commercial deep sea mining if parliament gives the go-ahead to explore the remote Mid-Atlantic ridge.