Will High Prices of Rare-earth Elements Affect the Photonics Industry?

Rare earth elements are misnamed. They are not rare by any measure. They are simply too close to each other in the periodic table, to be easily separated. They are produced as byproduct in mining operation. China smartly cornered the market, and insane EPA rules prevent the use of the domestic product. Admittedly, the present separation / refinement process is dirty. It needs an update

Since they - at the present state of technology - are essential to permanent magnets, all industries are affected by price and availability.

It was China's ability to under cut-prices that caused the rest of the mining industries to suspend operations until now. Now that China has cut back on their exports, thus driving the market price up, it's now economical to go back and reopen the closed mines.This is a quote from Design News dated 9-22-2011, "Several light REOs are the byproducts of iron ore mining, which is one of China's staple industries. The steps required to extract REOs typically involve toxic or even radioactive materials. And in the past, Chinese suppliers have been subject to less stringent environmental regulation than their international competitors, which helped them undercut prices and ultimately capture around 95 percent of the market."

"That approach -- opening or reopening mines outside China -- is already under way around the globe. Molycorp Minerals LLC of Greenwood Village, Colo., has secured permits and $781 million in funding to reopen the Mountain Pass mine in California, which was priced out of the market in 2004. According to a new report from Technology Materials Research LLC of Carpentersville, Ill., sufficient sources exist outside China to compensate for the export cuts as early as 2013 for some elements..."

In the same vein (pun unintended but accepted anyway), a rare-earth mine may open up on Prince of Wales island next door to me, a short distance from the old Bokan uranium mine. It is supposed to be a "surgical" operation, with rich veins removed rather than open pits or dredging. Excusing another pun, I hope it pans out.

There is a real easy way for the rest of the planet to stop China from manipulating markets and prices. Stop buying from them.

All China is doing is playing on the knowledge that the rest of the world will run to the cheapest source of anything. Again to give credit where credit is due, it's a brilliant strategy...................as long as the rest of us continue to behave like Pavlov's dogs, it will continue.

Right - when you are playing a game with fools you use 'fools rules'.

I remember seeing new boots in the Navy getting lessons about shooting craps - the rules (that they didn't know about or understand) were only that the newbie lost.

This may be off topic, but it's shows China's ability to under cut the market in more areas than just Rare Earth Elements and it really pi$$es me off every time I think about it. And it's the construction of the new East Span of the San Francisco Bay Bridge. China is the major supplier of the steel for this project. Why? Because they under cut the price of American made steel. And in doing so, it also gave them the opportunity to refine more Rare Earth Elements while mining and milling the iron ore!!

This project is not only funded at the State level, but also subsidized with Federal money as it is part of the Interstate 80 infrastructure. Shame on our Legislature to allow this to happen at not only the State level but also at the Federal level, with all the Unemployment that this Country has, this should have never happened.

That's a tough one.

Both the Feds and CA are profusely bleeding red ink. At the same time, US unions want to be able to compete in the global marketplace, and yet refuse to make any concessions. Their packages include covered health care, early retirement, high wages, fat pensions, etc.

Not saying that unions are good or bad, but as states continue to go broke, largely due to unfunded or underfunded pension plans.....................something's got to give.

It is a bitter pill to swallow. The Bay bridge is a 6.281 billion (+) dollar project that should have stayed here. With that, I have to let it go, otherwise I'll get on my soap box and end up with another heart attack.

Don't do that. It's not worth it.

_{I won't tell you that the latest numbers are over 7 billion.}

Generally different mines.

There was a time, when the American Colonies did undercut the british manufactured goods for good reason, and well proven techniques. Relearning histories lessons is seriously advisable. Hint: nothing new under the Sun.

Heart attack is a very serious thing, not worth risking. It is a biochemical problem, not a sudden anger over anything. Write privately, if interested.

On a different thread, now, there was a lament by the europeans about the high price of the chinese finished rare earth magnets. they cost 50x - 80x of the raw materials. Good. And there seem to be a decision to open up a mine in Greenland.

What about besoiling that pristine wilderness? That is all I have heard from them. For a few pennies advantage to their pockets? How low and cheap!

There still be some hope yet, USGS just released this about Afghanistan mineral Studies including REEs

I can already hear the protestors screaming, "No blood for minerals".

Hi Mark, I was thinking the same thing when I was reading the studies. It probably be one of those situations, where there is so many protesters, they will tell you,

"Go take a number and stand in line, if you want to be heard"