REPORT: China not hoarding rare earth metals, just wants them to be used in Inner Mongolia
A coal mine in Mongolia
Reports of the death of rare earth metals might have been greatly exaggerated. While it remains true that China mines almost all (i.e., more than 95 percent) of the rare earth minerals that are taken out of the earth, the Wall Street Journal is reporting that recent news saying that China may begin hoarding these minerals – needed for today's hybrids, among many other high-tech products – are false. Instead, a senior Chinese official told the WSJ, the export controls are being put in place in order to get more high-tech firms to move to Inner Mongolia. Of course, if companies are building fancy gadgets using the metals in Mongolia, that does effectively hoard them, in that they won't be available for export. This means that fears of a price increase in the metals is not out of the question.
[Source: Wall Street Journal via Green Car Advisor]
Photo by Wolfiewolf. Licensed under Creative Commons license 2.0.
Reader Comments (Page 1 of 1)
amtoro 4:12PM (9/03/2009)
That does not necessarily means they will not be exported... the products containing them will eventually be exported and that is what matters at the end.
A perfectly reasonable move, instead of only getting paid for raw materials, they get all the benefits of the economical activity within their borders. Chinese are not stupid.
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Mike!!ekiM 6:31PM (9/03/2009)
Hmmm... You mean to tell me that a "managed economy" is More Profitable to the Host Country, then a "free market economy". The Chicago School must be spinning in it's grave.
amtoro 9:04AM (9/04/2009)
The free market economy model has lead to some countries commerce balance to be negative, while others are net exporters, that is another story.
Here, we are talking about a sovereign government that want to develop a region by limiting the natural resources that can leave it before being transformed. Makes sense to me, if you had a sheep farm and you have the people and resources to convert your own wool into apparel items, would you still sell the wool or would you make and sell clothes? (also assume nobody else in the world can make those clothes for less that you do and you have a captive market)
I'm not more in favor of their move more than you are, but it is their right...
TIMMAH!!! 4:29PM (9/03/2009)
How about a low-tech company based in Inner Mongolia and presses these rare earth metals into figurines or bowling balls and exports them to other countries?
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contact 5:17PM (9/03/2009)
So instead of fighting future wars for oil we'll fight them in china for battery metals.
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zhaviensdad 5:39PM (9/03/2009)
Why do we have to fight them for it? It is their resource, and they should be free to do with it as they please. I fail to see how this is different from what the west has done with their resources.
Ray 6:23PM (9/03/2009)
Yes, why just look at OPEC they share. I hope the Chinese are as giving of their resources as the middle east. Nothing is any fun, or profitable, unless you can share it.
Rick 8:29PM (9/03/2009)
Could be the problem with converting the world to hybrids and evs?
price and availability of rare earth metals
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