Rare Earth Metals Future May Hinge On China

by

Until recently it hasn’t been economic to mine them, and with China flooding the market the last two decades nor has it been necessary. However, Beijing’s imposition of export quotas, which it claims are necessary to protect a finite supply and curb the environmental impact of the open cast mining needed to get at them, has changed the game.

As you might expect, some western analysts are skeptical about China’s explanation for the quotas.

“It’s remarkable how when they need additional supply, they suddenly find reserves, but when they don’t want there to be supply around and it supports their argument, then suddenly the reserves are shrinking,” Jon Hykawy, an analyst with Byron Capital Markets in Toronto told Reuters recently.

The uncertainty over long term supply of the metals has led to attempts to seek alternative solutions.

Last year, for example, Molycorp invested in Boulder Wind, a maker of turbines that use no dysprosium, though they use other, less-scarce rare earths.

Car makers, meanwhile, have been looking to wean themselves off their dependence on rare earths entirely.

rare_earth_metals

image via MIT

General Motors is reportedly developing a replacement technology for permanent magnet motors, as are Toyota and Renault. Hitachi has already produced an electric motor that does not use rare earths, but the motor will not go into commercial production for two years.

Honda has gone another route. The car maker announced recently that it has begun extracting rare earths from its old car batteries. Honda said it planned to reuse the extracted metal in new batteries and for the construction of other car parts.

All these efforts may in the end prove unnecessary, however.

According to the advisory firm Technology Metals Research, there are currently 35 rare earth projects at various stages in development outside of China.

The U.S. Defense Department, meanwhile, published a study in March which claimed that the opening of new production facilities in North America, including the Molycorp facility in California, should mean the current reliance on Chinese exports is brought to an end.

The Defense Department report asserted that by 2013 the U.S. military, which is almost completely dependent on China for its rare earths right now, will be able to meet a majority of its demand from North American sources.

Pages: 1 2

Posted on June 27th, 2012 · Comment ↓

Tags ,

Posted in Electric Vehicles, Featured, Green Computers and Internet, Green Computing, Green Living, Hybrids, Renewable Energy, Transportation, Wind Power

  • http://www.facebook.com/mcamelyne Michael D. Ballantine

    The problem with extracting rare-earth minerals is that the process pollutes the surrounding environment.  There is one source of rare earth minerals that we can exploit and create millions of jobs at the same time, the Moon.  Building a moon base would allow companies to begin processing Moon rocks for rare-earths without concern for the environment offsetting the cost of production and providing opportunities for new companies in a new market.  Extracting rare-earths in California will destroy the local watersheds, negatively impact wildlife, and push the cost of polluters onto future generations.  Our short-sighted mining, drilling, and extraction regulations do not consider future clean-up costs.  We need to begin focusing on the society we want 50 years from now instead of next quarter’s profits.  Instead of a President with vision, we have a fire fighter that continually trips over himself.  We need environmental Justice in Washington because our children have rights, too.

    Support Rocky Anderson in November 2012.

  • Terry Floyd

    All REE renewable resource roads lead through Thorium TH232 and Uranium U238 fields, both are fuels for the Liquid Fluoride Thorium Reactor LFTR, costing USA REE extractors high cost to store as radioactive toxic waste. Another big plus in the deployment of LFTR reactors. One ton of Thorium consumed in a LFTR will generate 9900 GWe hr of CO2 free electricity and yield 125 kg of stable neodymium.