Are Rare Earth Metals The Next Oil?

The Next Oil?: Rare Earth Metals -- Elliot Brennan, The Diplomat

Rare earth metals are quickly becoming the next important strategic resource. For many countries in Asia, the stakes are big.

Rare earth metals (REM) are increasingly becoming a critical strategic resource. The 17 elements can be found in most high-tech gadgets, from advanced military technology to mobile phones. China currently holds claim to over 90 percent of the world’s production. As global demand increases, Beijing’s export reductions in recent years have forced high-tech firms to relocate to China and forced other governments to pour money into their exploration and production. An emergent India is among those concerned about China’s control of rare earths. In the past 12 months, the geopolitics of rare earths has become evident. REMs are becoming a strategic resource over which the two emerging giants are competing in Asia. Indeed, one might say rare earths are fast becoming “the next oil.”

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My Comment: A good review on why rare earths play a vital role in today's modern economy .... and why they are essential to the defense industry.

Pentagon And Japan Are Working together To Break China's Monopoly On Rare Earths

A rare earth mine in China. Rare earths are essential to many technology products, and China provides most of the world’s supply. Reuters

Pentagon Challenges Chinese Monopoly On Rare Earths -- Stars and Stripes/Bloomberg

The Pentagon and Toyota are trying to crack China's global monopoly on mining the most valuable rare earths used in unmanned military drones and electric-car motors.

The U.S. Department of Defense and Asia's biggest carmaker are working with Canada's Ucore Rare Metals and Matamec Explorations, which are developing North American mines that would boost supplies of so-called heavy rare earths. Those are the less abundant members of a group of 17 chemically similar elements critical to make a host of products from wind turbines to high-performance magnets for cars and weapons.

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My Comment: It is not only because China is restricting exports that concerns customers like the Pentagon and Japan, but it is also because there is legitimate fear that China will ban exports to governments that it is in disagreement with.

How Beijing Cornered The Rare Earths Market

China Digs It: How Beijing Cornered the Rare Earths Market -- Damien Ma, Foreign Affairs

In September 2010, after Japan arrested a Chinese fishing boat captain in disputed waters in the East China Sea, Beijing allegedly retaliated by holding back shipments to Tokyo of rare earths, a group of 17 elements used in high-tech products. Arcane names such as cerium, dysprosium, and lanthanum -- elements that populate the bottom of the periodic table and whose unique properties make them ideal materials in the batteries that power iPhones and electric vehicles -- suddenly commanded global attention. It mattered little whether Beijing actually carried through with the threat (reports are murky), the damage was already done: The world had awoken to the fact that overreliance on China for rare-earths supplies could put the international high-tech supply chain at risk.

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My Comment: Bottom line .... it was (and still is) all about the money, and China's determination to get more for the products that it manufactures. But like all things that involves the market place .... the Chinese may have the advantage now .... but as costs escalate and supply consistently is in doubt .... China's position may just as quickly change.

What’s The U.S. Government Policy On Strategic Resources?

A Government At War With Itself -- Daniel McGroarty, Real Clear World

What’s U.S. Government policy on strategic resources? Not oil - where we’re fighting out on the front pages who’s to blame for higher gas prices - but the dozens of other arcane metals and minerals from Antimony to Zirconium that go into all the gadgets we use to update our Facebook pages, power our post-petroleum energy alternatives and - via our Government - launch drone strikes?

That depends on what part of the U.S. Government is doing the speaking.

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My Comment: The U.S. Government has enough headaches in trying to run the government .... to put onto its shoulders additional responsibilities .... one that (mind you) does have a direct bearing on our national defense .... is .... probably .... one government policy that is too far.

Sighhh .... what a difference from the Chinese who view rare earths as something that is vital to their national security.

Is A Global Conflict Over Rare Metals Looming?

Are Global Metal Wars Looming? -- Real Clear World

Terbium, Erbium, Lanthanum, Lithium, Cobalt, Cerium: This partial list is a high-tech hodge-podge of Rare Earths and Rare Metals increasingly making their way into headlines and legislative hearings. The challenge now, for policy-makers and the interested public, is to know which Rare Metals loom largest in our ongoing economic development, and whether we can ensure access to a steady supply.

Given the stakes, there's no better time to learn the new language of resource scarcity. Strictly speaking, the Rare Earths - subject of concern due to China's current near-monopoly - include Scandium, Yttrium and the 15 so-called Lanthanides, Elements 59 through 71 on the Periodic Table. Rare Metals is the broader category, including Rare Earths but ranging well beyond.

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My Comment: With advancements and developments in technology becoming more and more dependent on a steady supply of these metals ... any disruptions will have a large impact. Not surprising .... investors, suppliers, and governments are taking notice.

Congress Wants To Know Why Are We Dependent On Rare Earths From China

Western Lawmakers Push Gates On China’s Minerals Dominance -- The Hill

Lawmakers are questioning whether the Pentagon is taking seriously enough the national security risks that arise from being dependent on China for a crucial mineral supply.

In a Jan. 28 letter to Defense Secretary Robert Gates, three lawmakers from western states questioned why the Pentagon has yet to compile a comprehensive list of what rare earth minerals the country is most dependent on China for.

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My Comment: I suspect that the list that the lawmakers want is classified. Still .... the U.S. has abundant supplies of raw earths, it is just that the production closed down when the Chinese could do it cheaper. But with Chinese aggressive behavior on the international scene raising everyone's concerns .... I suspect that this present state of affairs is going to change.

The U.S. Moves To Break China's Monopoly Over Rare Earths

Image: BMacZero, Public Domain

California Mine Will Reopen to Meet U.S. Demand for Rare Earth Materials -- Popular Science

Japan has already taken measures to innovateand make deals around China’s monopoly on the global supply of refined rare earth elements, and the U.S. is now doing the same. Rare earths producer Molycorp has secured the proper permits and clearances needed to reopen the Mountain Pass, Calif., mine that should be able to cover the current domestic demand for rare earths once it reaches full production.

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More News On Rare Earths

Undermining China's Monopoly on Rare Earth Elements -- Technology Review
Rare Earth Element Mining is Re-Starting in the U.S. to Break China's Near-Monopoly -- Tree Hugger
Hitachi Joins California Rare Earths Race -- Fast Company
How China’s Rare-Earth Chokehold Has Helped One Small U.S. Company -- BNet
Hitachi and Molycorp plan rare earth joint venture -- CNET

My Comment: If I was the Chinese, I would be saying that we have overplayed our hand.

U.S. Vulnerable To It's Dependence On China's Rare Earths

China now produces nearly all the world’s supply of the minerals. David Gray/Reuters

U.S.: Rare-Earth Supplies Face Possible Disruptions -- Wall Street Journal

WASHINGTON—Supplies of rare-earth materials, mined mostly in China and used in a handful of clean-energy products, could be cut off or disrupted in future years, according to the U.S. Energy Department.

Five rare-earth materials that are used to build electric vehicles, energy-efficient lighting, solar panels and wind turbines "are at risk of supply disruptions," David Sandalow, assistant secretary for policy and international affairs at the U.S. Energy Department, said Wednesday at the Center for Strategic and International Studies.

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More News On Rare Earths

U.S. Called Vulnerable to Rare Earth Shortages -- New York Times
US urged to ramp up rare earths -- AFP
Energy Department: U.S. rare-earth access at risk, supply diversity needed -- The Hill
Report Points to U.S. Vulnerability to China's Rare-Earth Supplies -- Technology Review
U.S. Risks Running into Rare Earth Metal Supply Problems, China Controls 97% of Market -- Clean Technica
Rare-Earth Mines Should Be Reopened, U.S. Says -- Bloomberg

China to raise tariffs on certain rare earth exports in 2011 -- Xinhuanet
China to hike some rare earth export duties -- AFP
China to raise taxes on rare earths -- Bloomberg
China to raise export tax on rare earth -- Asia One News
Rare earth -- The Hill
China's Changing Economic Leverage -- Jongryn Mo, Wall Street Journal

What's Next For Rare Earths

Get Ready for Rare Earths 2.0 -- Real Clear World

Followers of the Rare Earths debate, get ready for a feeling video gamers know all too well: Just when you've mastered Level 1, Level 2 hits you with a new quantum of complexity. With a blend of headlines and hype, Level 1 has brought us to an either/or impasse: Either our high-tech economies are about to grind to a halt for lack of Rare Earths - or we're at the brink of a Rare Earths "bubble," with new supply pouring into the market far ahead of demand's ability to soak it up.

That's as far as Rare Earths 1.0 can take us. It's time to step up to Rare Earths 2.0, where geology and geo-politics collide.

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My Comment: Some good background information and analysis on the geopolitics of rare earths can be found at the Scholar's Stage.

As Talk Of Strategic Rare Earth Scarcities Increase, The U.S. Takes Stock Of It's Own Supplies

A new report finds significant deposits of rare earth elements in 14 states, with the largest known deposits at Mountain Pass, California; Bokan Mountain, Alaska; and the Bear Lodge Mountains, Wyoming. "Placer" deposits are sandy sediments that sometimes contain rare earths. Phosphorite deposits, which mostly occur in the southeastern US, sometimes contain the rare earth elements yttrium and lanthanum (Image: USGS)

US Reserves Of Rare Earth Elements Assessed For First Time -- New Scientist

The US has 13 million tonnes of rare earth elements but it would take years to extract them, suggests the first detailed report on the country's supply.

"Rare earth" is an alternative name for the lanthanides – elements 57 to 71 – plus yttrium and scandium. The elements are integral to modern life, and are used in everything from disc drives, hybrid cars and sunglasses to lasers and aircraft used by the military.

China controls 97 per cent of the world's supply and has been tightening its export quotas, sparking concerns that the rare earths could live up to their name.

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My Comment: In its last confrontation with Japan, China did not hesitate to use its leverage on rare earth supplies by denying it to Japan. What makes anyone think they will not use it again.

China States That Rare Earths Will Not Be Used As A "Bargaining Tool", But No One Is Listening

Hillary Clinton, the US secretary of state on a state visit to Japan, welcomed the statement on Thursday but said that further clarification was needed. Photo: Reuters

Rare Earth Metals Won't Be Used As 'Bargaining Tool', Says China -- The Telegraph

China will not use its dominance of vital rare earth metals as a “bargaining tool” against other nations, the country’s industry ministry said on Thursday, as international discontent over China’s alleged hoarding of the metals continues to deepen.

China controls 97pc of the world’s rare earth metals supply and has faced mounting criticism in recent months after announcing it was slashing export quotas for rare earth metals by more than 40pc in 2010 compared with a year earlier.

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More News On China's Dominance On Rare Earths

China will not use rare earths as bargaining chip -- Xinhuanet
China Says Rare Earths Not A `Bargaining Tool' -- NPR/AP
China says rare earths not a 'bargaining tool' -- AFP
China likely to keep rare earth supplies tight -- Reuters
Washington warns against dependence on China for rare earths -- Financial Times
Clinton Seeking Answers on China’s Rare Earth Trade Policy With U.S. -- Washington Independent
Rare earths issue likely topic U.S.-China meetings -- Reuters
The price of China's tech metal monopoly -- Computer World
FACTBOX-How rare earths are used in various industries -- Reuters
China's rare-earth power over global trade -- Washington Post editorial

China's Monopoly Over Rare Earths Raises Economic And National Security Concerns

Germany To Raise Alarm Over China Rare Earths Restrictions at G-20 -- New York Times

BERLIN — Stung by Chinese muscle-flexing over minerals crucial for high-technology industries, the German government said Thursday that it would raise the alarm at the Group of 20 talks, even as it looks to step up efforts to develop new supplies in Eastern Europe and Central Asia.

German companies say they are being pressed by Chinese officials to increase their investments in China if they want to be assured of access to rare earth minerals and two other obscure elements, tungsten and antimony. China dominates the mining of these metals.

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More News On China's Control (And Monopoly) Of Rare Earths

Decline in Rare-Earth Exports Rattles Germany -- New York Times
Global trade wars: China turns up the heat -- CNN
Traders Gird for Rare-Mineral Trade War -- Wall Street Journal
Japan's rare earth minerals may run out by March: govt -- AFP
China Plans to Reduce Its Exports of Minerals -- New York Times
The Truth Behind China’s Rare Earths Embargo -- Forbes
Here's The Chart The Rare Earth Metal Pumpers Don't Want You To See -- Business Insider

China Limits Rare Earth Exports, Raising Concerns Among Other Countries On What Is China's Intentions

China Said To Widen Its Embargo Of Minerals -- New York Times

HONG KONG — China, which has been blocking shipments of crucial minerals to Japan for the last month, has now quietly halted shipments of those materials to the United States and Europe, three industry officials said on Tuesday.

The Chinese action, involving rare earth minerals that are crucial to manufacturing many advanced products, seems certain to further intensify already rising trade and currency tensions with the West. Until recently, China typically sought quick and quiet accommodations on trade issues. But the interruption in rare earth supplies is the latest sign from Beijing that Chinese leaders are willing to use their growing economic muscle.

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More News On China Limiting Rare Earths Exports

China halting key minerals to US: report -- AFP
China-Japan Rare Earth Fracas Continues -- Forbes
China denies reports on halting export of rare earth -- CNN
China Denies Planning to Cut Rare Earths Exports -- ABC News
EU ‘Cannot Confirm’ Claims China Blocking Rare-Earth Shipments -- Bloomberg Businessweek
China’s Rare Earth Policies Getting More Scrutiny -- Wall Street Journal
US inquiry into China rare earth shipments -- BBC
China's hold on the rare earth market -- CNN
A pundit in search of a problem -- The Economist opinion
FACTBOX-Winners & losers from China rare-earths controversy -- Reuters

U.S. Bomb Output Is Now Limited By China Metal Quotas

Photo: Motors in missiles like the JDAM might be three times as big without advanced magnets. The JDAM has been used extensively in Iraq and Afghanistan. Photographer: Philip A. McDaniel/U.S. Navy via Bloomberg

Pentagon Loses Control Of Bombs To China Metal Monopoly -- Bloomberg

A senior manager at a company that churns out metals routinely used in U.S. smart bombs pauses in mid-sentence when his phone rings: a Wall Street stockbroker looking for information. He makes a note to have an assistant call back -- someone who is fluent in English, not just Chinese.

“It’s a seller’s market now,” says Bai Baosheng, 43, puffing a cigarette in his office in Baotou, China, where his company sells bags of powder containing a metallic element known as neodymium, vital in tiny magnets that direct the fins of bombs dropped by U.S. Air Force jets in Afghanistan.

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My Comment: I am surprised that is there is no stockpile for such a collection of strategic materials. But with China using the 'rare earths' card against Japan in a recent diplomatic dispute, I am expecting this to change.

Are We About To Fight Wars Over Strategic Metals?

Is This The Start Of The Element Wars? -- New Scientist

Warnings have already surfaced about water wars. Now the prospect of "element wars" is raising its ugly head.

Chinese customs officials are blocking shipments to Japan of rare earth elements (REEs) and companies have been informally told not to export them, says The New York Times.

The move puts more pressure on relations already tested by the capture of a Chinese fishing boat captain in disputed waters earlier this month. The captain was finally released on friday, says the Financial Times, but the ban on exports appears to remain in place.

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My Comment: Japan certainly buckled down very quickly when China started to use its monopoly position on rare earths against Japan. It may not have been the main reason why Japan acquiesced to Chinese demands, but I am sure that they thought about it .... they and everyone else in the world.

China Flexes Its Power Over Rare Earths

Didymium oxide, a combination of neodymium and praseodymium, two rare earth elements is shown at at Molycorp Mineral's Mountain Pass Mine in Mountain Pass, California August 19, 2009. Credit: Reuters/David Becker (UNITED STATES)

Did China Test Fire its Resource Weapon? -- Real Clear World

From the heyday of the Cold War to our present-day monitoring of rogue nation nuclear quests, the U.S. and its allies have maintained a technological picket fence to pick up evidence of test firings. In detecting the launch of a new weapon in the past 48 hours, however, NORAD's tracking screens were of no use. The trip wires in this test-launch are cargo shipping agents and port manifests. Their message was mixed, but ominous: China may have just test-fired an economic weapon in the Resource Wars.

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More News On China's Monopoly Position On Rare Earths

China Hold on Metals Worries Washington -- Wall Street Journal
Analysis: China fans concern over supply of rare earths -- Reuters
Rare Earth Elements Rear Their Head Again -- The Atlantic
Worried About China's Monopoly on Rare Elements? Restart American Production -- The Atlantic
Factbox: What are rare earth elements? -- Reuters

Why China's Monompoly Over 'Rare Earth" Minerals Should Concern Everyone

A rare earth mine in China. Rare earths are essential to many technology products, and China provides most of the world’s supply. Reuters

China Wielding Power With 'Rare Earths' -- Washington Post

China's recent move to limit exports of minerals critical in the manufacture of a vast array of products such as missiles, car batteries, cellphones, lasers and computers is stoking alarm that its domination of the industry could give it enhanced leverage over the United States.

On Thursday, some traders of "rare earths," 17 minerals that are used in small portions in almost every advanced industrial product, reported that China, which controls 97 percent of the industry, had halted the export of anything that contained traces of the minerals to Japan. The Chinese government denied the allegation.

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More News On China's Control Over 'Rare Earths'

China Is Blocking Minerals, Executives Say -- New York Times
Japan sees Chinese ban on mineral exports -- Financial Times
Traders: China halts rare earth exports to Japan -- AP
Japan traders say China blocking rare earths exports -- AFP
Japan trade min hears China rare earth exports halted -- Reuters
China 'places unofficial ban' on key metals exports to Japan -- The Telegraph
China Denies Japan Rare-Earth Ban Amid Diplomatic Row -- Washington Post
China denies ban on rare earths exports to Japan -- AP
A Speculative Rare Earth Power Play -- RTT News
Why Japan Cares About Rare Earth -- Wall Street Journal
China Blocks Minerals Needed by Toyota's Hybrid Cars -- Live Science