DOE Report: U.S. Vulnerable to Rare Earth ShortageDecember 17, 2010
 A new report from the U.S. Department of Energy (DOE) released on Dec. 14 warned that the U.S. is too dependent on China for rare earth minerals, making the U.S. economy vulnerable to shortages, tariffs and disruptions that might be spurred by diplomatic tensions. China mines an estimated 96% to 99.8% of the global supply of rare earth elements, according to the report. The over-reliance on China could spell trouble for the U.S. as both countries begin to see each other increasingly as geo-political rivals and as China modernizes its weapons systems. China could very well use its rare earths supply to control U.S. defense production. The U.S. aerospace and defense industries rely on rare earths, which are the building blocks of modern guidance systems, battery technologies, consumer electronics and weapons systems. For example, the report noted that optoelectronic devices, which include laser diodes and LEDs -- are widely used in aerospace, consumer goods, industrial equipment, medical equipment and telecommunications, and make up 31% of gallium demand. The defense industry -- along with the high-tech sector -- relies on scarce elements that are the building blocks in integrated circuits. The DOE report expects it is likely to take 15 years for the U.S. to mine enough rare earth minerals to shake its dependence on China. But the implications run far deeper than fear of a disrupted supply. David Sandalow, the assistant secretary of energy for policy and international affairs, who oversaw the publication of the report, told The New York Times [LINK: http://www.nytimes.com/2010/12/15/business/global/15rare.html] that while American industries could use less-efficient alternatives to rare earths for some of these technologies, the real price comes from not fully exploring what innovations could spring from using rare earth minerals. He said that the U.S. had put far fewer resources than China into studying ways to use the powerful magnetic properties of rare earths, according to the article. "There are thousands of rare earth researchers in China and dozens in the United States, and that underscores both the challenge and the opportunity," he told the Times. "Their expertise in this area is significant." Image: Agricultural Research Service, United States Department of Agriculture. |
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