China pondering hoarding precious metals used in hybrids and EVs by banning exportation?
Ever hear of neodymium? How about dysprosium or yttrium? Thulium or lutetium? These are just some of the metals that China's Ministry of Industry and Information Technology is considering either banning the exportation of, or at least severely limiting the amount that it will let leave the country. These precious metals are used in manufacturing new (and sometimes green) technologies, and China wants keep the goods available for its growing domestic use.
Neodymium, in particular, is required for making the electric motor in hybrid cars, and every Toyota Prius you've ever seen contains 25 pounds of rare earth elements. iPods, Blackberries and countless other items also require these rare earth minerals.
Right now, China mines more than 95% of the rare earth minerals that are taken out of the ground. Let us repeat that: Ninety-five percent. While some might see the export limits as an act of aggression by China, an Australian rare metals expert told the UK's Telegraph, "This isn't about China holding the world to ransom. They are saying we need these resources to develop our own economy and achieve energy efficiency, so go find your own supplies." Does this mean BYD will one day have a big, big advantage?
[Source: Telegraph via China Car Times | Image: Martin Bernetti/AFP/Getty]
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Reader Comments (Page 1 of 4)
Alex 2:46PM (8/26/2009)
Ohh the irony of the thought of war being waged over minerals needed for hybrids!
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Sanders 3:06PM (8/26/2009)
And so it begins. The rush to control the Earth's next important resources...
Does anyone else see a war, say 20 years down the road?
Ian B. 3:16PM (8/26/2009)
This isn't funny. I have a son who's only 6. The thought of him fighting a war over resources 15 or 20 years from now angers me.
the4thheat 3:25PM (8/26/2009)
War being waged? That was World War II-the major reason for Japan desperately wanting to take over China was because China is rich (very rich) in natural resources, especially compared to Japan where hundreds of millions of people basically live on tiny volcanically formed islands.
China being particularly rich in resources is also why the western powers carved it up into their little spheres of influence, and why the older parts of Shanghai look like various European cities.
But you know, since it is their land and their resources it's really hard to demand that they give it to you when they themselves have 1.5 billion people who all wanna drive cars so if they don't keep some for themselves their skies will get even more horribly polluted. China gets so much flack in the media for not doing enough about pollution but if they're seriously going to do something they're going to need to keep more of their own resources to make it happen...can't have it both ways.
akboss302 3:35PM (8/26/2009)
...yet up until the day a war does break out, we will be forced to listen to people whine and bitch about rights and liberties to buy, use and consume whatever they please without regard for any future existence.
Luis 2:46PM (8/26/2009)
Nah, we'll just rape other third-world countries to feed our insatiable consumerism.
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LesPaul1 3:03PM (8/26/2009)
what we do best, since the18th century.. holllaaaaa
Jerk Face 3:00PM (8/26/2009)
Ding! Ding! Ding! Ding! Ding! We have a winner!
tanooki2003 3:02PM (8/26/2009)
BINGO
Rick C. 3:03PM (8/26/2009)
It worked for oil. The CIA set up friendly monarchies to feed our oil needs. I'm sure we can find people in the Chinese government to bribe. Money talks.
James Toliver 9:29PM (8/26/2009)
With China growing into another economic superpower they are only wise to withold their resources for for thier own use. While America neglect and further rape third world countries like Africa, China is seen investing in and giving much needed aid and incentives to the struggling continent for a much larger return for their investment.The scriptures says 'When the Dragon roll over the Euphrates and Tigris rivers with an army of 200 million so with it shall be the King of the South". Too bad the west does not find Africa an appealing ally. Well, we may one day when we're all speaking chinese.....Shalom
FThorn 2:47PM (8/26/2009)
That is a great idea. China is in a position of power over all the world. Why not flex its muscles?
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nadnarb 3:26PM (8/26/2009)
They probably shouldn't. What would happen if Saudi Arabia stopped shipping oil? We would adapt to a different fuel and fast. What would that do to oil prices....drop them like a stone over a period of brief spiking.
It is simple economic theory of supply and demand. If the supply is gone then demand will spike in the short run as people adapt. After adaptaion the Chinese will be left with a lot precious metals that arent very precious, thus shooting self in foot.
Easiest scenario is this Chinese reduce these metals, they spike in price making hybrids unaffordable in the short run. Fuel efficient cars then take center using diesel and turbos. Fuel spikes in response causing a flood of alternate fuel technology with hydrogen most likely taking center stage. Either scenario looks like last summers $130 a barrell oil prices with governments rushing to find alternate means.
Just a side note though if China does this it would be epically dumb, they can reduce exports by 25% creating a falsely inflated price and laugh to the bank as people dumbly pay for it.
Although all this is moot if these metals are found in some 3rd world nation that nobody cares about.
akboss302 3:49PM (8/26/2009)
Not sure if anybody has heard of Canada, but believe it or not we are 350,000 square kilometers bigger than China and are basically made up entirely of raw natural resources. Oil, precious metals, gems, forests, fresh water and farmland are in abundance.
kal326 4:07PM (8/26/2009)
@akboss302
Yes we have heard of Canada, but we prefer to exploit countries that are further way. The day we have to start strip mining near our own backyard...well their goes the neighborhood.
epi23140 9:46PM (8/26/2009)
The thing with Canada is that although it has vast reserves of oil, gas and uranium it doesn't really have the rare Earth metals needed to produce electronic goods.
Ari 2:50PM (8/26/2009)
And yet biofuels are out of the question because corn is too precious, and fuel cells aren't viable?
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TigerMil 2:59PM (8/26/2009)
Clearly the comment on fuel cells is ignorant of their use...fuel cells produce electricity which is used by electric motors and stored in batteries...i.e., the components that utilize the rare earth minerals that China is considering limiting export of.
the4thheat 3:39PM (8/26/2009)
There's ways around requiring a battery to let fuel cell vehicles work...ultracapacitors and similar stuff. Or simply different battery chemistry, since a battery that just has to store a little bit of electricity being passed from a fuel cell doesn't necessarily have to have the exact same metals.
It's just that under current battery tech these metals are used and convenient (and all the Chinese battery factories are already set up to make batteries like this). Since the US has no real battery plants to speak of it really doesn't affect us much other than having to either go obtain these resources ourselves or having to work out alternate battery technologies with resources we do have.
Presumably China wants to keep more internally since 1.5 billion people polluting like crazy has already made their city skies the most disgustingly polluted skies since the industrial revolution, so they want to keep the prices low to help more people get greener technology. If it was exported then prices go up and Chinese people wouldn't be able to afford it, and China will continue to have black skies.
It's certainly the right thing for China to do for it's own environmental health, whether or not we like it.
ckm 2:51PM (8/26/2009)
This is effectively what the US has done with oil by limiting exploration. Despite that, the US is still the world's 3rd largest oil producer... Like comment #2 (Luis) says, the result of this sort of policy is draining other countries of their resources...
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