China Cuts Off World's Rare Earth Metal Supply
October 21, 2011 12:40 AM
comment(s) - last by
The hand giveth, the hand taketh away
China only has about 30 percent of the world's rare earth metal deposits, but thanks to clever planning it today
controls 97 percent of the world's production of these scarce resources
. Deposits of this family of 17 elements --
vital to power electronics
found in televisions, smart phones, electric vehicles, and a variety of other devices -- are found in California, Canada, Australia, and Russia, but it will take years to bring them online.
In short the world is
at China's mercy
for now when it comes to rare earth supply. And China's biggest rare earth metal producer -- the Inner Mongolia Baotou Steel Rare-Earth (Group) has announced that it is severing shipments to the U.S., Japan, and Europe for one month in an attempt to artificially inflate prices.
Inner Mongolia Baotou Steel Rare-Earth also plans to buy rare earth metals in an attempt to further move prices upward. The company already controls 60 percent of China's rare earth production, thanks to the Chinese government's decision to merge 35 other local companies into the Inner Mongolia business, or fade them out.
China controls 97 percent of the world's rare earth metal production.
[Source: Wikimedia Commons]
While the Sichuan province in the southwest and Shandong in the east produce significant amounts of rare earth as well, the Inner Mongolia Baotou Steel Rare-Earth Group's decision should be enough to move prices significantly.
Doing so will benefit China in a couple ways. First, prices will almost certainly go up, reverse a downward slide. Lynas Corp., an Australian rare earth producer reveals that since June the price of neodymium oxide has declined 34 percent to $157 per kilogram, while europium oxide is down 35 percent at $2,904 per kilogram.
Sun Fan, a rare earth analyst for Goldstate Securities in the southern city of Shenzhen comments in a
, "The impact on the market supply will be substantial. The dual measures of suspension and purchase will offer support for the rare earth prices and make the prices gradually pick up in the future."
Aside from raising prices higher, the pause in production will allow China to try to kick start its efforts to produce locally produce magnets. When it comes to the production of the magnets used in the electric motors of hybrid and electric vehicles, typically the biggest profit is not realized at a commodity level, but at a magnet producer level. Thus in the past foreign nations like the U.S. and Japan have pocketed the biggest profits. China
hopes to change that
China hopes to supplant its U.S. and Asian rivals as the main producer of electric motor magnets, by choking resource supply to its foreign competitors. [Source: ThinkGeek]
China's Ministry of Land and Resources in September bragged that rare earth metals were the nation's "21st century treasure trove of new materials." It argued that exports should be tightened, choking foreign supply and favoring Chinese manufacturers.
This article is over a month old, voting and posting comments is disabled
RE: Tree hugging retards.
10/24/2011 5:25:20 AM
PriusOne I am running for office in Oregon, Portland to be exact....
We need not 'take one for the team' to still get at these materials, and other ores.
Oregon is one of the most beautiful States in the Union as I have driven in 47 of them proffessionally I can attest my opinion with clarity.
We can mine a location, then use reverse fill when the mine is 'used up' and then use renaturalization methods to restore the ecosystem.
Mining companies would see most of this as trivial if they can get the right costs... and I am supporting a system where companies bid on mining rights, and so long as they show intent to mine right away they can bid, and they must incorporate a guarantee (with fiscal and criminal penalties) of no contamination reaching humans (IE drinking water) and a full restoration of the area (within some allowances, after all if they remove large amounts of coal filling the mine would be impractible, but sealing it, and replanting the affected exterior areas would be neccessary)
I support NO subsidies on this what so ever.
The bid profits would goto our general fund and an appropriate monitoring power such as the BLM or such.
This, or other proposals I have, could easily provides tens of thousands of jobs. This example would include miners, mine staff, drivers (moving the ore to where it will be refined), refiners, the manufactore of required tools and equipment, and so forth.
We can balance real environmentalism (not this for profit crap, or for power over others crap) with smart economics.
I am Michael Harrington and I endorse this message.
RE: Tree hugging retards.
10/24/2011 1:10:27 PM
Talk to Armadillo Mining in Grant's Pass. They have a sticker that says "Earth First! We'll Mine the Other Planets Later".
Look, the spotted Owl pretty much destroyed the town that I grew up in. Oh, wait, it wasn't that stupid owl, it was stupid people. Stupid people are happy with their pretty trees and pretty colors, but they do have destruction, which is what we do to the environment.
Take a stroll out some random BLM road down here in Douglas County. An ex-friend made the comment about how ugly logging makes the forest. We loaded up Google Maps and drove to a few of the clear-cuts that showed up on Satellite View. Sure, new trees had been planted about 7 years prior, and money from the sales of wood products had helped OUR economy, but alas, my ex-friend couldn't see past the 'poor environment'.
Yes. Mining is bad for the environment. Oregon has a naturally high occurring amount if Mercury in it's rocks, among other little nasty minerals. For as much as I would love to see mines opened up, Oregon jobs created, and the US being ever so SLIGHTLY less dependent on China, you can't make those tree hugging idiots see the light.
Then again, I've seen numerous log mills open up in the past few years, so who knows, hopefully I'm wrong.
RE: Tree hugging retards.
10/24/2011 3:43:15 PM
There has been a slight increase in logging though Conservatives like myself would like more.
The irony is that in the environmentalist effort to protect Old Growth by tying the spotted owl to it they have probably doomed the spotted owl to extinction.
A number of activists admitted years ago of placing dead spotted owls in old growth trees and in other owls nests to make their case. The sad truth is they live in about Christmas tree sized growth and the small amount of these now after two decades of growth and rhe fact a superior owl shares this habitat means the Spotted Owl is nose diving in numbers.
Logging responsibly could actually save that species.
I will look that mining company up. Thx for heads up!
"What would I do? I'd shut it down and give the money back to the shareholders." -- Michael Dell, after being asked what to do with Apple Computer in 1997
China's "Rare Earth" Cuts Threaten Electronics, Power, and Auto Industries
December 30, 2010, 12:32 PM
China Quietly Looks to Strangle U.S., Japanese EV Production
October 21, 2010, 11:00 AM
China's Stranglehold on Rare Earth Metals Could Choke EV, Hybrids
April 30, 2010, 11:41 AM
Hybrids, EVs More Dangerous to U.S. Security Than Foreign Oil, Says Expert
April 19, 2010, 11:31 AM
Report: Vehicle-to-Vehicle Communications Could Make New Cars, Trucks Costly
March 13, 2014, 7:19 PM
BMW: Demand for i8 Hybrid Sports Car Outpaces Production
March 13, 2014, 10:08 AM
Toyota's Takeshi Uchiyamada Says Hybrids Will Soon Have 20% Global Share
March 13, 2014, 9:24 AM
Tesla Loses Out in New Jersey's Vote for Direct Auto Sales Ban
March 12, 2014, 12:44 PM
Bids Sought to Build New Presidential Limo
March 12, 2014, 10:21 AM
Audi Traffic Light Recognition System Hopes to Save Fuel
March 11, 2014, 9:54 AM
Most Popular Articles
Bitcoin King Pt. II: Mt. Gox's Dictator Karpelès Proves Tragically Flawed
March 7, 2014, 1:12 PM
Hack Reveals Fallen Bitcoin CEO's Posh Tokyo Penthouse
March 10, 2014, 4:28 PM
Tesla Motors Calls New Jersey Out on New Rule Against Its Direct Sales Model
March 11, 2014, 12:01 PM
NASA Considering SpaceX "Red Dragon" for Returning Mars Samples to Earth
March 10, 2014, 2:43 PM
India Could Rock Google With Its Biggest Antitrust Fine Yet -- $5B USD
March 10, 2014, 8:12 PM
Latest Blog Posts
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
Is The Period Becoming an Expression of Anger?
Nov 26, 2013, 2:02 PM
NSA and Congress -- You Will Never Kill the Constitution, It's an Idea
Nov 10, 2013, 2:00 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information