News / Asia

Lack of 'Rare Earth' Minerals Could Cause Major Problems

Toyota Prius hybrid, whose production is dependent upon the availability of 'rare earth' minerals
Toyota Prius hybrid, whose production is dependent upon the availability of 'rare earth' minerals

Multimedia

Audio
  • Ira Mellman speaks with Jeff Green about the rare earth materials

Ira Mellman

Although they deny it, many around the world are saying that the Chinese have curtailed or halted the supply of what are called "rare earth materials" to Japan, in apparent retaliation for Japan's refusal to issue an apology in its dispute with China over a detained fishing boat captain. No matter the reason, the reduction in the supply of these materials could cause major problems not only in Japan, but around the world.

Ira Mellman speaks with Jeff Green about the rare earth materials:

China mines 93 percent of these rare earth materials, which sell for several hundred dollars a pound. Most of the sales are to Japan. Japan then uses these materials to produce products ranging from making glass for solar panels to the motors used by hybrid cars like the Toyota Prius.  

“These are things that some folks in the industry refer to as 'technology metals'," said Jeff Green, a Washington lobbyist trying to coax Congress to make it more affordable for US companies to get back into the mining of these rare earth materials. "These are things that make magnets stronger, make electronics smaller and things move faster, so they are really the next generation of high performance metals. Without these, things like your iPhone wouldn’t be as small as it is and wind turbines wouldn’t produce the power that they do.”

At one time, it was the United States that lead the world in the production of these rare earth materials. But the mines have closed.

Jeff Green says the problem was, and still is the cost of these mining operations. He says the cost of starting such a mining operation now is about half a billion dollars.

Green says there is another reason there is no movement in new mine startups. "The problem in this market is that the Chinese are so dominant that anyone who invests that type of money in the market faces the problem of what the industry saw in the nineties, and that was where a flood of the materials would be dumped on the market, driving the price down, which would upset the economics of those outside of China trying to invest in the system."  So, says Green, it’s really the manipulation of this market by the Chinese that makes this a particularly difficult business to get into.

In Beijing, the government controlled China Daily newspaper reports there are 40 percent cuts in export quotas of the rare earth materials for the second half of this year from last. It quotes a rare earth material expert there as saying the reduced quotas have nothing to do with China's dispute with Japan.

The report says due to the need to keep more of the materials for its own use, the export supply has basically been exhausted, meaning China can't export any not only to Japan but to Europe or the United States either.

Lobbyist Jeff Green says the reduction or elimination of the supply of rare earth material would have a major effect, not only on Japan but on the United States as well.

“Certain defense systems may not have material available. For example, guided missiles, radar, all kinds of defense systems. Really it’s difficult to name a system that doesn’t have some kind of rare earths. We’re very concerned about the supply material to support the building and construction of those systems."

Green adds "It also could have grave economic impacts. If you look at the United States trying to go to a renewable energy standard of 20 percent by 2030, there currently isn’t the rare earth material available to build those wind turbines to help build that economy. So, unless the U.S. comes online, we really can’t ever get to a renewable energy standard set forth by the administration.”

Last week, a US House committee agreed and approved a bill that would, among other things, provide loan guarantees for US companies wishing to start up rare earth material mining. Committee Chairman Bart Gordon said it was essential for the United States to start providing its own rare earth materials.During the Committee's markup hearing, Representative Gordon (D-TN) said “I believe it would be foolish to stake our national defense and our economic security on China’s good will, or hope that it will choose to compete in a fair and open global marketplace for rare earth. The stakes are simply too high.”

The US Defense Department is compiling a report on the national security impact of US dependence on the Chinese provided materials and this week, a Senate committee will probe the issue as well.

You May Like

Kurdish Party Pushes Political Gamble to Run in Turkey Poll

HDP announces it will run as political party instead of fielding independent candidates in June election, but faces tough 10 percent threshold More

Twitter Targets Islamic State

New research shows suspending Twitter accounts of Islamic State, its supporters has been effective; group, its backers are facing 'significant pressure,' says terrorism expert More

Video Former Sudan 'Lost Boy' Becomes Chess Master in NYC

Majur Juac made the leap from being a refugee in Africa to a master chess champion in US, where he shares his expertise with students More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
NASA Monitors Earth’s Vital Signs From Spacei
X
Rosanne Skirble
January 27, 2015 5:05 PM
The U.S. space agency, NASA, is wrapping up its busiest 12-month period in more than a decade, with three missions launched in 2014 and two this month, one in early January and the fifth scheduled for January 29. As VOA’s Rosanne Skirble reports, the instruments being lifted into orbit are focused on Earth’s vital life support systems and how they are responding to a warmer planet.
Video

Video NASA Monitors Earth’s Vital Signs From Space

The U.S. space agency, NASA, is wrapping up its busiest 12-month period in more than a decade, with three missions launched in 2014 and two this month, one in early January and the fifth scheduled for January 29. As VOA’s Rosanne Skirble reports, the instruments being lifted into orbit are focused on Earth’s vital life support systems and how they are responding to a warmer planet.
Video

Video Saved By a Mistake - an Auschwitz Survivor's Story

Dagmar Lieblova was 14 when she arrived at Auschwitz in December 1943, along with her entire Czech Jewish family. All of them were to die there, but she was able to leave after several months due to a bureaucratic mix-up which saved her life. Now 85, with three children and six grandchildren, she says she has a feeling of victory. This report by Ahmad Wadiei and Farin Assemi, of RFE/RL's Radio Farda is narrated by RFE’s Raymond Furlong.
Video

Video Weekly Protests in Korea Keep Japanese WWII Atrocities Alive

Every week in Seoul protesters gather in front of the Japanese Embassy to demand an apology and reparations from Tokyo for the thousands of South Korean women who were forced into prostitution during World War II. Although this year marks the 70th anniversary of the end of the war, these protestors have helped keep the issue of comfort women alive and made it difficult for Japan to move beyond its past wartime atrocities. VOA's Brian Padden reports from Seoul.
Video

Video Exercise: New Prescription for Parkinsons Disease

Exercise could be the new prescription for Parkinson's Disease, a progressive disorder of the nervous system that affects movement. More than six million people worldwide suffer from Parkinsons and they're traditionally treated with medication and surgery. Shelley Schlender has more.
Video

Video Brussels Shaken as New Greek Leader Challenges Europe’s Austerity Drive

Greece’s youngest-ever prime minister, 40-year-old Alexis Tsipras, was sworn in Monday after his victorious far-left Syriza party entered a coalition with far right rivals. Tsipras says he will restore dignity to Greece by ending spending cuts. So begins a new chapter for the country at the epicenter of Europe’s economic crisis - a change that has sent tremors across the continent, as Henry Ridgwell reports from London.
Video

Video Obama Urges Closer Economic Ties During Historic India Visit

U.S. President Barack Obama says the United States and India must do better to capitalize on untapped potential in their economic relationship - by removing some of the roadblocks to greater trade and investment. As VOA correspondent Aru Pande reports from New Delhi, Obama spoke after participating in India’s Republic Day celebration.
Video

Video White House Grapples With Yemen Counterterrorism Strategy

Reports say the U.S. has carried out a drone strike on suspected militants in Yemen, the first after President Barack Obama offered reassurances the U.S. is continuing its counterterrorism operations in the country. The future of those operations has been in question following the collapse last week of Yemen’s government. VOA White House correspondent Luis Ramirez reports.
Video

Video Worldwide Photo Workshops Empower Youth

Last September, 20 young adults from South Sudan took part in a National Geographic Photo Camp. They are among hundreds of students from around the world who have learned how to use a camera to tell the stories of the people in their communities through the powerful medium of photography. Three camp participants talked about their experiences recently on a visit to Washington. VOA’s Julie Taboh reports.
Video

Video US, Japan Offer Lessons as Eurozone Launches Huge Stimulus

The Euro currency has fallen sharply after the European Central Bank announced a bigger-than-expected $67 billion-a-month quantitative easing program Thursday - commonly seen as a form of printing new money. Henry Ridgwell reports for VOA from London on whether the move might rescue the eurozone economy -- and what lessons have been learned from similar programs around the world.
Video

Video Oil Price Drop Troubles Texas Producers

As oil prices have fallen over the past several months, drilling operations have slowed in some parts of the United States - including Texas, the state that surpasses all others in energy production. The Lone Star State’s energy output has been boosted in recent years by development of resources trapped deep below ground in the Eagle Ford shale deposit, which stretches across south central Texas. As VOA’s Greg Flakus reports from Karnes City, Texas, the drop in oil prices has created concerns,
Video

Video Nigerian Elections Pose Concern of Potential Conflict in 'Middle Belt'

Nigeria’s north-central state of Kaduna has long been the site of fighting between Muslims and Christians as well as between people of different ethnic groups. As the February elections approach, community and religious leaders are making plans they hope will keep the streets calm after results are announced. Chris Stein reports from the state capital, Kaduna.
Video

Video As Viewership Drops, Obama Puts His Message on YouTube

Ratings reports show President Obama’s State of the Union address this week drew the lowest number of viewers for this annual speech in 15 years. White House officials anticipated this, and the president has decided to take a non-traditional approach to getting his message out. VOA White House correspondent Luis Ramirez reports.

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More

All About America

AppleAndroid