The new objects of desire in the global race for resources are no longer oil or gas, but the so-called 'rare earth' metals; the race is also to capture a leading position in the production of future green technologies.

Rare earth metals have names such as Yttrium, Terbium, Neodymium or Lanthanium. With more than 95 percent, China is the world’s leading producer. However, China recently threatened to halt exports of the rare metals, which sheds light on their increasing strategic importance within the global political power structures and interdependencies. A recent example from Australia highlights this fact further: The country’s government blocked a Chinese state-owned company from acquiring a majority stake in the Australian mining company Lynas.



By restricting the export of raw earth metals, China could try to gain the lead position in the production of green technologies: Next to their use for the production of modern means of communication such as mobile phones, MP3-Player or flat screens, these metals constitute irreplaceable components of many sustainable future technologies such as solar and fuel cells. Likewise, running hybrid cars and wind turbines requires permanent magnets with Neodymium; Lanthanium for example is needed for the production of energy saving lamps. In order to counter this worrying dependency, closed mines such as the Mountain-Pass-Mine in the Californian desert are being re-commissioned and a quest for deposits outside of China has started. However, it might take years and even decades before such plans yield fruits.



Instead of engaging in this global race for metals, whose availability is currently not foreseeable – and thereby repeating the same mistakes as in the case of oil and gas – the planning and construction of future technologies should aim at using alternative resources. Efficient recycling processes that reuse the irreplaceable rare earth metals also need to be developed. (Monika Kronz)



More information on the global race for rare earth metals is available at http://www.nytimes.com/2009/09/26/business/energy-environment/26rare.html



Please find more information on the deposits, production and utilization of the metals at

http://www.ftd.de/unternehmen/industrie/autoindustrie/:exportbeschraenkung-rohstoffmangel-bedroht-hybridautos/50003678.html

Published in: ECC-Newsletter, October 2009