China’s rare earth export up in 2010

China’s rare earth export actually went up in 2010, despite all the talk about tensions and impact of quota decrease.

China exported 35,000 tons of rare earth from January to November in 2010, up 14.5 percent year-on-year, according to the website of China’s Ministry of Commerce.

Japan, EU, and US are the main export market, taking 86 percent of the overall export, the ministry said.


“China will keep supplying the world market with rare earth, and manage the export quota based on WTO rules,” said Yao Jian, spokesman for the Ministry of Commerce.
Yao said international cooperation will help the rare earth supply. “US, Australia, and some countries in the middle Asia have expanded rare earth production. I think this will help to ease the tension in rare earth supply,” he said at the press conference.

China takes 36 percent of the world’s rare earth reserve and 90 percent of the global supply. In 2010, the export quota decreased by 30 percent than 2009.

“We will further complete the rare earth regulation system in global cooperation, including rare earth export and production policies,” said Yao.

Here is the link for the transcription of the press conference: http://www.mofcom.gov.cn/xwfbh/20110118.shtml

Europe’s rare metal strategy

Europe should focus on mining and recycling of critical metals, instead of stockpiling, as US does, according to a FT report.

The suggestions includes set up a EU policy to protect the bloc’s investment in raw materials abroad. The report also cited Antonio Tajani, EU industry commissioner, as saying that he was eager to deepen co-operation with Africa to improve Europe’s access to raw materials.

I find this line interesting: “The report's recommendations include policies to improve access to primary resources by promoting exploration and ensuring that this is viewed as research activity.”

The report was prepared by an expert group “chaired by the European Commission and set up as part of Brussels’ effort to secure sustainable supplies for the bloc,” the newspaper said.

Here is the FT report: http://www.ft.com/cms/s/0/6522b2b6-78dd-11df-a312-00144feabdc0.html#axzz1BNUk9xhD

I haven’t found the exact report. But here is a EU report on metals:
ec.europa.eu/enterprise/sectors/metals-minerals/.../sec_2741_en.pdf

the rare earth ties between China, Japan and Korea

Three models as summed by Dr. Jung-Chan Bae (P127)

Resource-based China: world’s largest production, regulation of export

Import-based Korea: lack of resource, huge commercial industry, weak supporting industry.

Technology-based Japan: world’s 1st materialization. Closed recycling system.

According to Dr. Jung-Chan Bae, Korea Institute of Industrial Technology (KITECH):
Rare metals are imported from China by Japan. After materialization in Japan, Korea imports these highly refined materials, manufactures finished products, and either exports or consumes them. After use, the waste is either lost or goes back to China and/or Japan. Japan recycles the materials and exports them again to Korea. One of the principal goals of Korea’s rare metals strategy is to design policies that will make Korea self-sufficient by recycling rare metals. (P45)


Source: MIT Critical Elements Report

China’s national rare earth stockpile plan

China is pondering on a national rare earth stockpile plan, which might came out in February, the China Business reported, citing a report by an investment institution.

The story quoted officials and sources in the industry as saying that although the exact time of the plan is uncertain, stockpiling is for sure the right policy direction.

Xu Guangxian, a rare earth scientist, has suggested to spent 1 billion yuan a year on building a reserve system of rare earth that is similar with the oil reserve of OPEC.

The national plan might be based on the current system, when firms make their stockpile plan, largely at its own cost.

In the beginning of 2010, the Inner Mongolia Autonomous Region put into practice a stockpile plan within the region. The Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co Ltd is the main party that will put the plan into practice. It is expected to take care of the main cost, too. The local government and its parent company will support.

The national plan, in addition to the reduced quota since December, might bring up rare earth price further. The article quoted businessmen as saying that they expect the price will rise after the Chinese spring festival.

Here is the story on China Business:
http://news.hexun.com/2011-01-15/126810500.html

A Xinhua story on the plan of Baotou is here:
http://news.xinhuanet.com/fortune/2010-03/01/content_13073803.htm

In addition to Toyota…

It is like a war at various fronts: Toyota is developing motors without using rare earth magnets. At the same time it is also searching for rare earth mines outside China.

In addition to Toyota, smaller companies are working on related technologies, such as developing magnets for more efficient hydrid motors.

Electron Energy Corporation is the last remaining US producer of sintered rare earth magnets, according to an article on the Energy Department’s website. The US Department of Energy gave a $750,000 Small Business Technology Transfer (STTR) to the family-owned business in September 2008 to support it, the article said.

Peter Dent, a vice president of the company, said more than 6,000 Americans worked in the permanent magnet industry in the 1990s, but foreign competition took most of these job overseas, especially in China, according to the report.

The grant is part of American government’s effort to support its competition in the global market and increase manufacturing jobs.

The company has been trying to develop a process that “allows manufacturers to maximize the electrical resistivity of Neodymium Iron Boron and Samarium Cobalt sintered rare earth magnets without reducing their magnetic strength,” the report said. The market of sintered rare earth magnets is estimated at $4 billion worldwide, according to the report.

Here is the link of the Energy Department report: http://blog.energy.gov/blog/2010/08/06/grant-helps-make-us-rare-earth-magnets-more-common

And the company’s website is here:
http://www.electronenergy.com/

US rare earth miner compete for government support

Rare earth producers in the United States are lobbying for help as the US government seeks to revive its rare earth industry, the Bloomberg reported.

Morlycorp wants federal loan guarantees to convert the elements into metals, alloys and magnets, Bloomberg cited Jim Sims, Molycorp’s vice president for public affairs, as saying.

The report said Morlycorp hired Jonathan Etherton, a former Senate Armed Services Committee staff aide, in December to assit the lobby. McBee Strategic Consulting, based in Washington, also helps.

Wings Enterprises Inc. of St. Louis is developing a mine in Pea Ridge, Missouri. It is lobbying Congress to help create an industry-backed cooperative to act as a repository for thorium. It will produce heavy rare earth, the report said.

The report is here:
http://www.bloomberg.com/news/2011-01-14/rare-earths-producer-molycorp-rivals-seek-u-s-aid-as-china-chops-exports.html

Toyota to develop electric cars without rare earth

Toyota is close to breakthrough in developing a motor for hybrid cars without using rare earth minerals, the Wall Street Journal reported.

All electric motors rely on magnets to work. The new motor Toyota is working on is based on inexpensive induction motor, the report said.

Permanent magnets are made from neodymium, a rare earth mineral. The new induction motor will mean the company will break its reliance on the mineral.

The report is here: http://online.wsj.com/article/SB10001424052748703583404576080213245888864.html

Here is the Bloomberg story:
http://www.bloomberg.com/news/2011-01-14/toyota-readying-electric-motors-that-don-t-use-rare-earths.html