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COMMON SENSE
ON RARE EARTHS
COMMENT
Totally
transforming...
The current rare-earth crisis has been looming for several years.
Observers have long warned of the danger of China becoming the
dominant supplier of these materials, which we rely on for products
ranging from televisions and headphones, to batteries and glass –
and, of course, for the high-power magnets used in many motors.
Despite their name, rare earths are not uncommon. An estimated
64% of the world’s reserves lie outside China, but the Chinese have
cornered the market by undercutting other producers, and by
showing little apparent concern for the environmental impacts of the
dirty business of extracting and producing the materials. Until
recently, that is.
China is now cutting back on rare-earth production and exports, as
well as hiking their prices, citing a new-found concern for the
environment as one of its reasons. It is also diverting more of what it
does produce to its own manufacturers, thus adding value to the
minerals, while restricting supplies to foreign competitors.
Another possible motivation for China’s restrictions is that at, at the
previous rate of production, China’s rare-earth resources could start
to run out within 15 years.
Not surprisingly, China is now trying to buy into rare-earth production
facilities in other parts of the world. For example, it has attempted to
acquire controlling stakes in at least two Australian rare-earth
producers. One of these bids was blocked by the Australian
government on grounds of national security.
Although Japanese manufacturers have been hit hardest by China’s
rare-earth restrictions, the effects are being felt around the world. In
Europe, for example, the trade body that represents around 3,000
suppliers to the automotive sector, has called on the European
Commission to ensure secure supplies of rare earths and to look at
possible production within Europe. For its part, the EC says it is
“monitoring the situation closely”.
If rare earths become unavailable or too expensive, there could be
far-reaching repercussions. For example, unless alternative motor
technologies can be commercialised rapidly, we will need to turn to
bigger, heavier motors which could affect the efficiencies and
economics of road vehicles – especially electric and hybrid vehicles.
The current rare-earth problems could last until around 2015 when
new sources of supply are due to come on stream in several
countries around the world. But some of the materials – such as
neodymium, which is used widely in high-power magnets – could
remain in short supply.
The rare-earth crisis emphasises how dependent we are on key raw
materials and how vital it is to have alternative sources of supply. We
need to act globally to ensure that no single country or company can
dominate the supply of such crucial materials in future.
...your old drives and motors to new
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To discover how easy it is to swap your old for new
visit www.drives.co.uk and click on the “swappage
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(that’s 07000 374837)
Tony Sacks, Editor
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