Perhaps a more suitable title would’ve been Postcard: People’s Republic of China, except for the fact that I’m in Arizona. This is an assortment of information about that formidable place modestly self-described as The Middle Country. Let’s begin with the impending global rare-earth metals shortage.
What are rare-earth metals?
Possible shortages in rare-earth metals seems rather arcane. What are they? Depending on who you ask, they are 15 to 30 elements with the following common properties: A silvery or grey appearance, high luster that is quick to tarnish in air and very high electrical conductivity. They are not all that rare, but earned their name from the tedious process by which they were extracted prior to advancements in metallurgy in the 1950′s.
Lanthanide series and a few more: The 17 Rare-earth Elements
Now I present a most beautiful Periodic Table of the Elements by Perioden System. If you like the Periodic Table, I highly recommend having a look at their interactive version, on Perioden System’s home site. Super-high resolution downloads are available free. Click on this image and those that follow to view full size.
The 17 elements that are universally considered rare-earth elements are also known as the Lanthanides. The name is pleasingly appropriate, as it is derived from the Greek lanthanon, meaning I am hidden. They appear on the bottom drop-down of the chart, numbers 57 Lanthanum, through 71 Lutetium. Elements Scandium and Yttrium comprise the rest of the rare-earth metals. Several members of the second series, the Actinides, are also classified rare-earth by some, including Thorium and Uranium.
Important! Precious Metals, which are refined from the elements Gold, Platinum, Palladium, Silver, Rhodium and Irridium are NOT in the same group as the Rare-Earth elements. This confusion is common. Referring to the Periodic Table will clarify, as the Precious Metals have atomic numbers 45-47 and 77-79.
China now mines 95% of the world’s rare-earth metal supply
Rare-Earth Metals Shortage
Physics Today (May 2010) reports new concerns over China’s dominance of rare-earth metals. This presents yet another functional risk exposure to the People’s Republic of China.
The U.S.A. and the rest of the world have been highly dependent on China as a source of rare-earth metals for decades.
The demand is only expected to increase as green technologies gain more acceptance and use. Special batteries use rare-earth metals. Hybrid car motor construction requires Dysprosium, element 66. All of the heavy rare-earth metals such as Dysprosium are mined in China. Heavy refers to heavy nuclei, which simply means a larger number on the periodic table. In general, the heavier nuclei rare-earth elements are the most sought after.
Over 80% of the world’s material scientists, geologists and experts in rare-earth metals reside in PRC. According to the Physics Today article, concentration of metals in the PRC has also resulted in a dramatic shift in the world’s rare earth knowledge base, from the U.S.A., South America and Africa to China. Consequences of this localization are dramatic. For example, the division of General Motors which deals with miniaturized magnet research shut down its US office and moved the entire staff to China in 2006.
Rare-earth oxide production per year*
On September 1, 2009, China announced plans to cut its quota to 35,000 tons per year in 2010-2015 to conserve scarce resources and protect the environment. This isn’t necessarily a play for monopoly power and hegemony, as there is also the simple matter of the limited supply of natural resources. In fact, illegal rare earth mines are common in rural China and are often known to release toxic wastes into the general water supply, presenting further environmental concerns for China and all of us.
Part 2 will continue with my market insight, such as it is. Perhaps there will be coverage of a second intriguing topic from the Middle Country, the sinister-sounding Human Flesh Search Engine. It is not quite that sinister, however. To be continued….
* Chart of global rare-earth resources courtesy of Wikipedia and the U.S. government.
