RareEarths
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Japan to reduce rare earth consumption in response to China's export controls
Japan took another step toward lessening its rare earths dependence today, announcing plans to drastically reduce consumption levels in response to China's continued market dominance. Of particular concern to the Japanese government is dysprosium -- a rare earth used in the production of high-powered magnets. China, which accounts for about 95 percent of the world's rare earth supply, has been tightening export controls on the metal in recent months, sending global prices skyward. With its domestic supplies dwindling, Japan has now committed to reducing its dysprosium consumption by 30 percent over the next few years, as part of a $65 million initiative. Much of that money will presumably go toward helping manufacturers develop alternative production and recycling methods, as some already have. Toyota, for instance, has found a way to produce hybrid and electric vehicles without using dysprosium, while Mitsubishi, Panasonic and TDK are currently looking at ways to extract the metal from old air conditioners. If effective, the government's program would reduce domestic consumption by between 200 and 400 tonnes per year.
WTO ruling revives debate over China's rare earths trade
China suffered another setback at the WTO yesterday, thanks to a ruling that could spell trouble for its controversial rare earths industry. In a decision issued Monday, a WTO panel determined that the Chinese government has been acting in violation of international trade rules, due to export restrictions on a number of raw materials. These restrictions, the panel said, allowed Beijing to inflate global market prices, while giving an advantage to domestic producers. As a result, China will likely have to adjust its trade policies to comply with WTO regulations. In a statement, the country's Ministry of Commerce said it "deeply regrets" the decision, but confirmed that the People's Republic will adhere to it. This week's ruling applies to materials like bauxite, coke, magnesium, manganese and zinc, but, most notably, does not apply to rare earths -- a group of 17 elements critical to the production of tablets, smartphones and myriad other gadgets. China has maintained a rather tight grip over the world's rare earths market, thanks to a slew of export controls, quotas and government-erected barriers to entry. The country has come under intense international pressure in recent years, with the US, EU and Mexico filing complaints with the WTO, arguing that China's price-inflating restrictions violate international trade agreements. Beijing, for its part, has long maintained that its export controls are designed to minimize the environmental impact of rare earth mining, while meeting the country's surging domestic demand. It's an argument that's come up a lot during this debate but one that the WTO, on Monday, deemed illegitimate, stating that China has thus far been "unable to demonstrate" the environmental benefits of its policies. The decision won't have any immediate bearing on these policies, but some observers are hopeful that it may be a sign of things to come. Michael Silver, CEO of rare earth processor American Elements, told Reuters that the ruling "confirms the existence of the two-tiered price structure that has caused so much concern," with EU Trade Commissioner Karel De Gucht adding that the decision should force China to remove restrictions on both the aforementioned raw materials and rare earths, alike. Others, however, aren't so optimistic, pointing out that, with a full 95 percent of the rare earths market under its aegis, China could realistically afford to ignore any decisions handed down from the WTO in the future.
Major Chinese supplier halts rare earths production in attempt to boost prices
With prices sliding and uncertainty rising, China's biggest producer of rare earth minerals has suddenly decided to suspend all operations, in a move that could strain already tense relations with the West. Baotou Steel, a miner, refiner and vendor located in Inner Mongolia, announced the decision in a statement today, explaining that it's simply looking to "balance supply and demand" in response to a prolonged price slump within China. Since June, in fact, prices of neodymium oxide and europium oxide have declined by 34 and 35 percent, respectively, with many analysts attributing the drop to mounting economic uncertainty in the US and Europe. Earlier this year, the Chinese government announced plans to merge or close some 35 rare earths producers within the mineral-rich northern region of Inner Mongolia, effectively crowning Baotou Steel as the industry's epicenter. Now, of course, that's all changed, though the shutdown will only last for one month. It's also worth noting that China still exerts rather considerable influence upon the market, accounting for roughly 97 percent of all production of rare earths -- a group of 17 minerals used to manufacture gadgets like cellphones, flat-screen TVs and EV batteries, among others. And while new deposits and market projections may point to a transforming landscape, it's unlikely that Chinese influence will wane anytime soon -- much to the chagrin of Western free trade advocates.
Your future iPhone's parts could come from the ocean floor
I'm always blown away when I remember that every single one of the raw materials that goes into making an iPhone or iPad has existed on this planet for hundreds of millennia. Just think about that for a second. When Neanderthals roamed the earth, and when the Roman emperors ruled -- all the raw materials needed for an iPhone or iPad were already available. However, just because you have the raw materials available, doesn't mean you have the knowledge or technology to build such wondrous devices -- that's what time and progress are for (and Steve Jobs). But once you have the knowledge and materials, look what you can create: solar panels, iPads, MRI machines. Oh, the wonders! Of course the problem with raw materials is consumption. As our technology advances and we consume more raw materials, there's less of them left on the earth to keep making cool devices like the iPhone. This is especially true for a group of raw materials -- mainly certain types of metal -- known as rare earths. Rare earths are used in any number of electronic devices from iPhones to batteries to lasers. And they're called "rare" for a reason -- they aren't abundant and we are running out of them. China currently controls 97% of rare earth production, but the US, Russia, and Australia also produce rare earths. Despite who controls the production, the simple fact is that we are running our of rare earth metals and once gone, say goodbye to future electronic devices. It's great if Apple comes up with a way to make the iPad 6 have a tactile 3D holographic display, but if there's no more rare earths left to build the parts it needs everyone is gonna be stuck using the iPad 5 -- forever. Even though we are running out of rare earths on land, Nature Geoscience is reporting that rare earth materials are abundant in the mud of the Pacific ocean floor. Best of all, mining and extracting the rare earth metals from the sea floor mud is apparently actually easier than extracting the metals from terrestrial sources. That's great news for everyone who likes technology. So in a few years when you pick up your new iPhone, stop to think for a moment and wonder at the fact that parts of that iPhone were once buried in mud on the bottom of the sea floor. [via Ars Technica]
WTO says China's rare earths export controls violate international rules, US applauds
China's monopolistic approach to the rare earths market is in violation of international trade regulations, according to a new ruling from the WTO. The verdict, issued yesterday, covers exports of nine minerals -- including zinc, manganese and magnesium -- that are used to produce a wide variety of smartphones, tablets and other gadgets. China, which controls about 95-percent of the world's rare earth supply, had previously argued that its export restrictions were needed to prevent overproduction and to conserve natural resources, but the WTO determined that the country was "unable to demonstrate" these environmental benefits. The investigation was originally spurred 18 months ago, after the US and other countries complained that China's quotas and tariffs unfairly favored domestic manufacturers, while distorting global prices. Experts expect Beijing to appeal the ruling, but this extra international pressure, combined with shifting supply chains and newfound deposits, may bring about the changes many have been calling for. If it doesn't, we'll all be stuck with corn phones.
Japanese scientists discover massive rare earth deposits, China bristles
China's control over the rare earths market hasn't faced too many challenges over the past few years, but that may be changing, thanks to a major discovery in Japan. Geologists say they've uncovered expansive new deposits of rare earth minerals, buried within a seabed some 20,000 feet below the Pacific Ocean surface. Research leader Yasuhiro Kato estimates that the deposits contain anywhere from 80 to 100 billion metric tons of rare earths, which, if commercially viable, could pose a serious threat to China's global hegemony. Supply shortages and aggressive Chinese export controls have combined to raise global prices in recent years, much to the chagrin of manufacturers who rely upon the metals to produce smartphones, tablets and a wide variety of other gadgets. But with analysts predicting a rare earth surplus within the next few years and Japan's mining industry now poised for a potential resurgence, the outlook is certainly looking a lot brighter.
Researchers find flaws in neodymium magnet crystalline structure, still in love with its personality
Given China's status as the worlds largest producer of rare earths and its recent proclivity for reducing exports of the stuff, everyone else is looking for ways to reduce dependency on rare earths or optimize the use of these sought-after elements. Well, neodymium is one of those rare earths, and a team from St. Pölten University in Austria recently discovered "disturbances in the crystalline structure in neodymium magnets" that weaken their magnetic fields -- and consequently the efficacy of all those electric motors and hard drives that utilize such magnets. For now, research is ongoing to fully understand the properties of neodymium and other rare earths so that their use can be "optimized." We aren't exactly sure how we'll benefit from all this optimization, but we hope it means cheaper and more powerful gadgets, TVs, and cars for all of us. [Image source: Thomas Schrefl]
China nationalizes eleven rare earth mines for environmental and strategic reasons
Most of our favorite gadgets are constructed with parts made of rare earth minerals, and as many of you already know, China produces the lion's share of the stuff. So news that Hu Jintao and company recently took control of 11 rare earth mines in order to more tightly manage the mines' production is of great interest to hi-tech companies and consumers the world over -- and could mean your next hybrid, smartphone, or PC just got a bit more expensive. The Chinese Ministry of Land and Resources indicates that nationalization of the facilities was prompted by illegal strip mining and dumping of toxic tailings in nearby waterways, but given China's pledge to reduce rare earth exports by ten percent this year, it seems likely that the move isn't entirely driven by environmental concerns. Consumers needn't worry too much, however, as Japan and the US are currently searching for ways to break China's monopoly on rare earths and keep us flush in affordable flat-screen TVs and hybrid cars for years to come.
China tightens hold on rare earth exports, markets soar
If you own a flat screen TV, a hybrid, a PC, or any number of cell phones, chances are you own a small but very sought after piece of China. The country accounts for 97 percent of the world's rare earth production, which is used in all manner of gadgets, and it recently announced plans to scale back exports by 10 percent in 2011. The move probably won't have a big impact on the average consumer, but it's certainly gained a lot of attention on the world market: the US threatened action in the World Trade Organization, stocks for rare earth mining companies spiked significantly, and Sony Corp. vowed to decrease its dependence on the minerals. It's actually not like the rest of the world is lacking for rare earth resources -- American's are actually sitting on 13 million metric tons of the stuff, which companies in the US and Canada are making a mad dash to mine. Trouble is, just getting the stuff out of the ground isn't enough -- China still has a monopoly on rare earth processing, and US companies are reluctant to spend the eight years and minimum $500 million necessary to construct a chemical separation plant. So what does all this mean for you? Well, not a whole lot, unless you happen to be China's Minister of Commerce, in which case you should probably stop surfing the web and get back to work.
US mineral companies to tech industry: drill, baby, drill
Even if your favorite gadget isn't flaunting them, rare earth metals are vital to all sorts of high-tech gizmos, from your flat-panel TV and computer hard drive to the hefty batteries that power the Toyota Prius. But over 95% of the world's rare earth comes from China; and late last year, China told the world that they'd like to keep the lion's share all to themselves. What will we Westerners do? Well, we could let China continue producing mountains of e-waste on our behalf. But we could also find plenty of rare earth just by digging in our own backyard. According to the U.S. Geological Survey, the United States has over 13 million metric tons of rare earth with concentrated deposits in Mountain Pass, California and Diamond Creek, Idaho. But since the private firms that control those deposits aren't willing to spend the requisite eight years and minimum $500 million to construct a chemical separation plant, Idaho-based U.S. Rare Earths is just sitting on their ore for now, while California's Molycorp Minerals is forced to send their material all the way to China (once again) for processing. "No one wants to be first to jump into the market because of the cost of building a separation plant," former USGS rare earth specialist Jim Hedrick told LiveScience. Should China's export dwindle and the U.S. feel the pinch, that may change, but for now it's good to know that when the global game of StarCraft tells us "not enough minerals," we'll know exactly where to look.
