WHAT: Rare earth element neodymium



WHY: Going green? Better go to China. Energy-efficient high-tech devices from light bulbs and iPhones to wind turbines and Toyota Priuses all depend on the unique characteristics of 17 rare metals, among them neodymium (used in hybrid cars), terbium (low-energy light bulbs), and dysprosium (lightweight magnets). Yet, Chinese mines supply the world with 97 percent or more of all of the above-and they’re not exporting. Will a rare metal trade war result, or can supply chains elsewhere adapt?



HOW: Rare earth elements occur together in nature and separating one from another for industrial use requires expensive technology and advanced scientific techniques. China has both-and, by geographic chance, 50 percent of global rare earth deposits. Now Australia, Canada, South Africa, and Greenland are rushing to open or expand native mines while other countries work to secure new supply lines. Toyota, for example, which uses over 30 pounds of rare earth element lanthanum in its Prius car batteries, contracted to be the exclusive customer of a rare earth mine in Vietnam. The pay-off: unique luminescence, magnetism, and conductivity vital to power X-ray machines, guided missiles, fiber-optic cables, and flat-screen televisions among a host of other products.



CAVEATS: China’s Ministry of Industry and Information Technology denies a strategy to reduce trade in rare earth metals.



QUOTE: Former Chinese premier Deng Xiaoping: “The Middle East has oil. China has rare earths.”



MORE INFORMATION: “The Battle Over Rare Earth Metals,” Journal of Energy Security: http://www.ensec.org/index.php?option=com_content&view=article&id=228