We begin 2012 similar to how we started
2011 when it comes to rare earth, rare technical metals and rare
industrial metals. China has over 90% of production and refining. The US
and EU governments are scrambling to legislate, source, produce, open
and reopen mines. The West has decided to continue down the road of the
idea that the markets will take care of the supply and price of these
metals. What is alarming is how easily the West was lulled to sleep by
China´s ability to supply the world its metals cheaply and efficiently.
The West concentrated on making money trading stocks and futures that
dealt with these commodities. China concentrated on building the most
extensive mining industry in the history of man. Here in 2012 the
Department of Energy in the USA has approved a spending bill that
includes $20 Million to focus on the supply issues of these metals.
The
metals I am speaking about are so vital to our everyday lives. These
metals are found in your mobile phones, computers, LCD and LED TV´s,
hybrid cars, solar power, wind power, nuclear power, efficient lighting
and medical technologies. Here is a list of metals that have been deemed
critical.
- Indium RIM (Solar, Mobile Phones, LCD)
- Tellurium RIM (Solar, Computers, Semi-conductors)
- Gallium RIM (Solar, Mobile Phones, LED´s, Fuel Cells)
- Hafnium RIM (Processors, Nuclear, Lighting, Plasma Cutting Tools)
- Tantalum RIM (Capacitors, Medical Implants, Mobile Phones, Nuclear)
- Tungsten RIM (Nuclear, Armaments, Aviation)
- Yttrium REE (Lighting, Medical Technology, Magnets in Hybrids)
- Neodymium REE (Magnets in Wind power, Super Magnets, Hybrid Vehicles)
- Dysprosium REE (Computers, Nuclear, Hybrid Vehicles)
- Europium REE (Lighting, LED´s, Lasers
- Lanthanum REE (Hybrid Vehicles, Magnets, Optics)
- Cerium REE (LED´s, Catalytic Converters, Magnets)
RIM=Rare Industrial Metal REE=Rare Earth Element
The
supplies of these metals could hold back the production of green
technologies. According to the latest report by the Department of
Energy, ¨Supply challenges for five rare earth metals may affect clean
energy technology deployment in the years ahead¨. If Green technology is
to become main stream, the costs of these technologies have to reach
cost parity with traditional energy sources. As long as there are
serious supply issues with these metals the costs can´t reach these
levels. The other option is finding alternatives like Graphene and
Nanotechnologies.
The US and EU need
supply chains of the metals that include both mining and refining of
these metals. Relying on sovereign states for critical metals such as
these, leave a nation vulnerable to outside influence in both politics
and economics. Environmentalists have succeeded in influencing
politicians to close mines throughout the West. Politicians have
legislated the mining industry into the position it is in today. The
Western nations must start now to build its supply chain or continue to
be at the mercy of the BRIC (Brazil, Russia, India and China) nations
for its metal needs.
The best the
West can do now is provide, enough metals to meet its own demands. China
has reached a point where it can now demand that certain industries
produce their products there. If a company decides to try to produce the
product in another country China will make producing that item cost
prohibitive outside of China by raising the prices of the metals.
The
demand for the products these metals are used to produce, are showing
few signs of slowing down even in a so-called recession. Governments are
subsidizing Green technology, people are buying mobile phones across
the planet and everybody wants a nice flat screen TV. Will 2012 pass
without countries truly taking this opportunity to fix the problem or
will they step up and make the hard decisions which can put the
countries back in control over their own destiny?
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