Home-based manufacturing of rare earth metals will restart in 2011. The rare earth metals mine run by Molycorp had closed six years back as Chinese manufacturing drove down prices. However, China has started to manipulate supplies, which has brought on prices for rare earth metals to rise dramatically.
Facts concerning the Molycorp Mountain Pass mine
A dormant mine in Mountain Pass, California, owned by Molycorp used to be the richest source of rare earth elements within the world. There were several environmental concerns and a lot of competition from China that brought on Molycorp’s Mountain Pass mine to close. China now has a monopoly on rare earth metals since Mountain Pass closed. The United States national security and economy is in danger with this. Molycorp has decided to start producing again after getting the right financing and permits. The company plans to produce 3,000 tons of rare earth metals in 2011. This will all come from ore that the business got before closing the mine. A production of 20,000 tons is expected in 2012.
All about the China Monopoly
The 2010 global demand for rare earth metals can be measured already. 125,000 tons was the amount. Of the world’s rare earth metals manufacturing, China owns a ton. About 97 percent is owned by China. Rare earth metals are used in wind turbines, electric auto batteries, electronic gadgets and military technology. In 2010, China appeared to be using its rare earths monopoly for geopolitical leverage. The exports of rare earth metals was cut by more than 70 percent stopping high tech manufacturing in the United States, Japan and Europe. Taxes, for home-based manufacturers, were reduced on rare earth metals in China. Prices for rare earth metals rose 40 percent. To save costs, several businesses are moving to China now. They are clean-energy technology companies.
Clean power economic climate onward
In order to guarantee a supply of rare earth metals for 7 years, Sumitomo Corp of Japan put $130 million into Molycorp. Within 18 months, production is expected by Molycorp to increase to 40,000 tons. In the United States, there are not any businesses that can use rare earth metals in a clean power economy in order to create emerging technologies like the neodymium magnets used in wind turbines. But Molycorp has entered a partnership with Hitachi to use bastnasite ore from the Mountain Pass mine to produce neodymium magnets in the U.S. Making neodymium magnets calls for a license that only 10 corporations in Germany, Japan and China have.
Information from
The Guardian
guardian.co.uk/environment/2010/dec/26/rare-earth-metals-us
MIT Technology Review
technologyreview.com/energy/26980/page2/
Miami Herald
miamiherald.com/2010/12/27/1989540/weaning-ourselves-from-a-china.html
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