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Honda unveils first hybrid motor without heavy rare earth metals
Honda pledged to reduce its use of rare earth metals a decade ago, and the automaker took another step towards that goal this week. It unveiled its new hybrid motor that was co-developed alongside Daido Steel, another Japan-based company. The new motor doesn't use heavy rare earth metals like dysprosium and terbium, instead relying on magnets from Daido Steel that cost 10 percent less and weigh 8 percent lighter than the previous components. In fact, the automaker is the first to develop a hybrid motor that doesn't use the heavy metals. Honda says the new engines will reduce its reliance on the pricey rare earth metals that are primarily supplied by China.
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.
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.
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.
Toyota developing new type of electric motor in an effort to escape dependency on rare earth metals
Toyota's not too pleased with the general scarcity of rare earth minerals and China's near-monopolistic grip on the world's supply, so it's decided to act before it's too late. A company spokesman has been cited as saying the Prius maker is hard at work on a new electric motor design that should dramatically reduce (though seemingly not eliminate) the need for rare earths in its production. Aside from being made of less price-volatile materials, the new electric ticker is expected to be generally cheaper to manufacture. Further details aren't yet available, but we hope this turns into a classic case of necessity breeding innovation -- that Prius C concept deserves a set of internals that can keep up with its bodacious exterior.
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.
