Rare Earths / Lanthanides - Strategic & Critical

Strategic and Critical Failure

All of the following statements represent the current status of America's failure to secure, develop and produce primary materials that are classified as "Strategic and Critical" to American Industry and our National Defense.

· Rare Earth Oxides have been classified as "Strategic" and or "Critical" to the Defense of the United States.

· The National Minerals Advisory Board has classified Rare Earths as "Strategic and Critical" as defined under the legislation governing the National Defense Stockpile (NDS).

· The National Academy of Science, the National Academy of Engineering, the National Research Council and the National Academy of Medicine all conclude that Rare Earths are "Critical" to our Nation's industrial interests.

· The United States Geological Survey has listed Rare Earth Oxides as one of 19 minerals or materials that the United States is 100% import dependent upon.

· The United States is primarily dependent on China, who produces approximately 98% of all Rare Earth Oxides, for world consumption.

· China is increasing taxes, export restrictions and imposing VAT penalties on all Chinese exporters of Rare Earth Oxides, Elements and Alloys.

· China has closed many small REO mines and ceased issuing mining permits for the production of Rare Earth Oxides.

· China has imposed strict production quotas and has begun enforcing environmental law on current producers of Rare Earth Oxides.

· Most observers agree that China's current restrictive production, export policy and tax regime on Rare Earth Oxides, Elements and Alloys is designed to restrict global supply outside of China, to lure Rare Earth technology dependent manufacturing facilities into China.

· Asia produces well over 90% of all Refined Rare Earth Elements and Alloys.

· Asia alone consumes over 90% of all Rare Earth Alloys, critical to the production of nearly all modern consumer electronics and many U.S. weapons systems and armor.

· Asia produces +90% of all Rare Earth Magnets, the critical component of electric automobiles (Prius, Volt, etc.) and ultra-capacity electric wind turbines. These REO magnets are also critical to the production of U.S. weapons guidance systems.

· There are no active commercial Heavy Rare Earth Elemental and Alloy production facilities in the United States (or within the Western Hemisphere).

· Our National Defense Industry requires Heavy Rare Earths, not just the light lanthanides.

· Our National Defense Industry actually requires Heavy Rare Earth Elements and Alloys for many applications, not just Rare Earth Oxides.

· America's military contractors are actually 3 steps removed from a secure source of these Strategic and Critical materials, as there are no active Rare Earth mines in the United States, there are no refining capabilities for Heavy Rare Earth Elements in the United States and there are no active Heavy Rare Earth Alloy production capabilities in the United States (or within the Western Hemisphere).

· Published global production and consumption estimates show that Asia alone could consume 100% of world production for many of the Rare Earth Oxides, Elements and Alloys as early as 2015, if no new production comes on line.

· Without a domestic source of Rare Earths, it is fair to say that the United States Defense Industry is primarily dependent upon "China" to sell us Rare Earth oxides.

· Considering the fact that China is the near-exclusive source for Rare Earth Oxides that Japan and others use to produce Rare Earth Elements and Alloys, ultimately the United States is in fact dependent upon "China" for all Refined Elements and Alloys.

· The United States does not maintain a "strategic reserve" of Rare Earth Oxides, Elements or Alloys.

· Our nation's defense contractors are having difficulty procuring these Strategic and Critical materials in the current environment.

· The above listed 'market concentration' potentially constitutes a "significant and unacceptable risk of supply disruption."

· There are no active Rare Earth mines in the United States.

· Consequently, in the event that any Heavy Rare Earth Oxides were mined in the United States these oxides would be sold to an overseas refinery for further elemental or alloy processing.

I am working with Congress and DoD on this issue. I need as many important applications and potential applications for these materials as possible for congress.

Please help me with this National Security Issue. Letters of support, applied technologies, etc.

jimnina9@aol.com