Rare earth metals are critical components for many new technologies, including strategically important goods like hybrid cars and windmills. Unfortunately, twenty years ago China decided to dominate the global rare earth metals industry and undercut foreign producers into bankruptcy.
Today, China controls 90% of all rare earth metals and is a net exporter. However, in a couple years time China will become a net importer of rare earth metals. This will mark an inflection point in the global struggle for resources.
“At that point, when the rare earth buyer from General Electric turns up and asks to buy some lanthanides, they tell him that everything has been allocated,” Mr Lifton said.
“America, Japan and everyone else is going to have to get used to the idea that, unlike other markets, it doesn’t matter how much money they offer for the product, China isn’t going to sell.” Source: Times Online
This seems to be an unknown issue among policy-makers and economists. Western economies have the resources to bring rare earth metal production back on-stream, but the effort needs to be made now if we are to avoid a major crunch in a few years.
In keeping with tradition, this has become yet another ‘if I can’t see it, it can’t hurt me’ issue, and, after some kind of disaster, we will ask why we ‘didn’t see it coming’.
Sounds familiar?
