EU Feels Pressure of China's Rare Earths Supply Pinch
The pressure to use low-carbon technologies less damaging to the environment is hitting hard on industries using rare earths in the European Union.
European Commission's Vice President Antonio Tajani raised the concern regarding the steady supply of rare earths, which are primary components to solar panels and energy-efficient light bulbs.
Rare earth metals are also used in common electronic gadgets like iPhones and iPads.
The site www.theengineer.co.uk cited a report by Tajani's early this week that a separate plan must be conceived to secure the supply of rare earths and allow the smooth execution of the EC's Strategic Energy Technology Plan.
"European companies need to have a secure, affordable and undistorted access to raw materials. This is essential for industrial competitiveness, innovation and jobs in Europe," Tajani's report said.
The EC has been conducting a study of the rare earths metals in pursuing the low-carbon technology indicated in the plan, which includes nuclear, solar, wind, bio-energy, carbon capture and storage and updating electricity grids.
The study, "Critical Metals in Strategic Energy Technologies," reveals that five metals commonly used in these technologies (neodymium, dysprosium, indium, tellurium and gallium) show a high risk of shortage, according to www.rareearthassociation.org.
China's clamping down on rare earth production has led other nations to consider their options in securing their steady supply of the metals.
The United States has been considering building its own stockpile, which some industry specialists said could also distort world prices and the supplies.
China currently holds close to 95 percent of current supply and commanded a premium price raging from 100,000 to 300,000 renminbi early this month.
To be less reliant on China for rare earths, companies like Molycorp, Lynas Corp., Alkane Resources, Globe Metals Mining, among other mining firms have embarked on mineral exploration projects to uncover more of the coveted rare earths.
Recently, the U.S. Congress considered a strategic stock pile of rare earths as they are used in a variety of applications including global positioning and guidance and control systems, according to a Congressional Research Service report.
Read more on this topic: Doubling Demand for Rare Earths Seen Pushing Prices Up in 2012