China To Limit Certain Strategic Metals That Are Necessary For All Modern Militaries

Neodymium: A rare earth element found in trace quantities in a variety of minerals, Neodymium is a crucial component in the alloy used to make the Prius's electric motors' magnets. Theodore Gray

China Sees New Limits, But Not Export Ban, on Rare Minerals -- New York Times

BEIJING — Chinese officials said Thursday that they would tightly regulate production of two minerals vital to manufacturing hybrid cars, cell phones, large wind turbines, missiles and computer monitors, but that they would not entirely ban exports.

China produces over 99 percent of the world’s supply of dysprosium and terbium, two rare minerals essential to recent breakthroughs in high-technology industries.

A bureaucratic reshuffle in Beijing this year prompted a review of Chinese policy, and new regulations were drafted that would entirely ban the export of these minerals. That has triggered anger and dismay from Western governments and multinational companies that depend on Chinese supplies.

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More News On Strategic Metals

China tries to calm unease over rare earths curbs -- AP
China says its rare earths supply may be inadequate -- Livemint
Shortage of Rare Earths Used in Hybrids, TVs May Loom in China -- Bloomberg
Rare earth, common problem -- China Daily
China tightens its grip on technological future -- Times Online
China says it seeks business for Inner Mongolia -- Wall Street Journal
As hybrid cars gobble rare metals, shortage looms -- Reuters
Reports: China to limit rare earths exports -- Forbes/AP
China Produces 99% of Two Rare Metals Needed for Hybrids -- Chinese Public Companies
Is China The New OPEC For Green Energy? -- The Atlantic

My Comment: For the past few years this has always been a concern. What is changing the dynamics of this discussion is the slow increase (or expected large increases) in the price of these metals. Money talks .... and everyone is now realizing how dependent they are on these minerals. My concern is the impact that these shortages will have on military budgets. I am willing to bet that these increases have not been factored into the cost of much of the high tech equipment that our military buys. Missiles, F-35 (future) planes, predator UAVs .... I am sure the list is long .... and expensive.