Analyst's note: Absolutely must read. If you think the price and availability of oil is a problem, just wait till this one really kicks in! Rare earths are vital to new technologies, but so far, the majority of mines for these substances are in China and are the source of international tensions and challenges. From our own Dr. Lloyd Case, we learn the following: "China's monopoly over rare-earth metals could be challenged by the discovery of massive deposits of these hi-tech minerals in mud on the Pacific floor, a study suggests.
China accounts for 97 percent of the world's production of 17 rare-earth elements, which are essential for electric cars, flat-screen TVs, iPods, superconducting magnets, lasers, missiles, night-vision goggles, wind turbines and many other advanced products.
The Department of Energy is seeing the problem that CSIA Report identified some while ago. China has a corner on the world market for strategically vital materials in the rare earth market. This threatens the US abiliity to wage war, to conduct commerce, and to manufacture important products.We need our leaders to address this vulnerability. This includes pulling the red tape off American minining and refinement that made us leave the market in the first place! Are we to become more vulnerable because our government regulations do not take national security into consideration when limiting commerce! Wake up America, get a government that wants America to succeed.
Our warnings are now coming to pass. Stunning .. please consider carefully the impact of what is being reported here.. Will somebody in our federal gov't charged with the national security (includes economic security) of America wake up? China is now in position to control the kind of weapons we make and the number of them - or if we make them at all.
Just two examples of the impact of this story - there are many more examples.
China is now controlling the lead time for magnets used to: (1) Make "[...] electric motors for cars, trucks and weapons including Raytheon’s AMRAAM -- or Advanced Medium-Range Air-to-Air Missile -- and Boeing’s Joint Direct Attack Munition, a tail fin kit for making precision-guided “smart” bombs out of ordinary weapons." This also includes magnets for "[...] stereo speakers, computer disk drives and motors.
(2) "China is virtually the only supplier of yttrium needed for laser gun sights in the General Dynamics Abrams tank."
"China's state media warned Tuesday that U.S. plans to press Beijing through the World Trade Organization over its control of special industrial minerals known as rare earths could trigger a backlash and sully bilateral relations.
The official New China News Agency said in a commentary that China’s export quotas were aimed at protecting its resources and environment in accordance with WTO rules.
"It is rash and unfair for the United States to put forward a lawsuit against China before the WTO, which may hurt economic relations between the world's largest and second-largest economies," the commentary said. "In [the] face of such unreasonable and unfair charges, China will make no hesitation in defending its legitimate rights in trade disputes."
[....] "Exports have been stable," Foreign Ministry spokesman Liu Weimin said at a regular media briefing Tuesday, according to the Associated Press. "China will continue to export, and will manage rare earths based on WTO rules. China hopes other countries can shoulder responsibility for supplies and can find alternative resources."
Miners of rare earths outside China, such as Colorado-based Molycorp Inc., have been racing to scale up operations to provide buyers with an alternative.
The Obama administration, along with Japan and the European Union, will reportedly ask the WTO on Tuesday to initiate talks with China over its exports of the valuable minerals.
The case underscores President Obama's increasingly aggressive stance toward trade with China during an election year in which Republican candidates have pledged to get tough on the world’s second-largest economy if elected. [....]"
Related articles:
U.S. is at China's Mercy for Rare Earth Minerals
Obama's Science 'czar' is providing China U.S. technology?
Rare Earths: Why China is Cutting Exports Critical to the West
U.S. Vulnerable to Rare Earth Shortages
China Widens Embargo of Rare Earth Minerals to include U.S.
The International Economy Remains a Battleground
