A Challenge to China"s Monopoly on Rare Earth Elements
With about 95% of world production of so-called rare earth elements, China has a virtual monopoly on these key minerals that are used in the manufacture of high-tech products.
And the land of pandas and orange chicken has been using its control over worldwide output of rare earths as a trade weapon by blocking exports of these critical elements to manufacturers that include Japan and Germany.
Although China has simply referred to its export restrictions as "increased scrutiny" of certain exports, the widely held view is that the action by China is in retaliation for the arrest of a Chinese fishing boat captain by the Japanese coast guard.
The Chinese boat had moved into water in the East china Sea near islands claimed as territory by both Japan and China.
Access to rare earth metals is important for the manufacture of a number of different high-technology products that include mass market products such as cell phones.
Products across a wide range of other industries will be affected as well.
For example, wind turbines necessary for expanded implementation of wind power rely of certain rare earth metals.
Hybrid vehicles such as the Toyota Prius are requires the elements in their production, and even military products like guided missiles are dependent on rare earths.
The embargo on shipments of rare earth elements out of China has created worldwide concern over their availability.
Concern has been so great in Germany that a special conference focused on the issue of maintaining access to rare earth elements will be held next week in Berlin.
The export restrictions have created a near panic mentality among some large Japanese companies such as Toyota and other large Japanese manufacturers of high-tech goods..
There is a challenger to China's monopoly lurking in the background, however.
The challenge is probably not coning from a source you would expect.
It is coming from the country of Greenland, where a site discovered in the Ilimaussaq Intrusion of Greenland has likely reserves of rare earth elements that would meet at least 25 per cent of global rare earth demand for the next half century.
Greenland is an autonomous country within the Kingdom of Denmark that uses the Danish Kroner as its currency.
The economy has always been heavily dependent on fishing and fish products, which currently comprise 94% of the country's exports.
That statistic may be about to change.
Indeed, it will change in dramatic fashion if the projections about the reserves of rare earth elements prove to be accurate.
And the land of pandas and orange chicken has been using its control over worldwide output of rare earths as a trade weapon by blocking exports of these critical elements to manufacturers that include Japan and Germany.
Although China has simply referred to its export restrictions as "increased scrutiny" of certain exports, the widely held view is that the action by China is in retaliation for the arrest of a Chinese fishing boat captain by the Japanese coast guard.
The Chinese boat had moved into water in the East china Sea near islands claimed as territory by both Japan and China.
Access to rare earth metals is important for the manufacture of a number of different high-technology products that include mass market products such as cell phones.
Products across a wide range of other industries will be affected as well.
For example, wind turbines necessary for expanded implementation of wind power rely of certain rare earth metals.
Hybrid vehicles such as the Toyota Prius are requires the elements in their production, and even military products like guided missiles are dependent on rare earths.
The embargo on shipments of rare earth elements out of China has created worldwide concern over their availability.
Concern has been so great in Germany that a special conference focused on the issue of maintaining access to rare earth elements will be held next week in Berlin.
The export restrictions have created a near panic mentality among some large Japanese companies such as Toyota and other large Japanese manufacturers of high-tech goods..
There is a challenger to China's monopoly lurking in the background, however.
The challenge is probably not coning from a source you would expect.
It is coming from the country of Greenland, where a site discovered in the Ilimaussaq Intrusion of Greenland has likely reserves of rare earth elements that would meet at least 25 per cent of global rare earth demand for the next half century.
Greenland is an autonomous country within the Kingdom of Denmark that uses the Danish Kroner as its currency.
The economy has always been heavily dependent on fishing and fish products, which currently comprise 94% of the country's exports.
That statistic may be about to change.
Indeed, it will change in dramatic fashion if the projections about the reserves of rare earth elements prove to be accurate.
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