The rare earth metal crisis, revisited

By Michelle Malkin  •  October 20, 2010 10:52 AM

Over the past month, I’ve noted how short-sighted enviro-zealots helped create the conditions for the current rare earth metal crisis (see here and here).

The NYTimes reports on the latest developments as China purportedly tightens the noose:

China, which has been blocking shipments of crucial minerals to Japan for the last month, has now quietly halted some shipments of those materials to the United States and Europe, three industry officials said this week.

The Chinese action, involving rare earth minerals that are crucial to manufacturing many advanced products, seems certain to further intensify already rising trade and currency tensions with the West. Until recently, China typically sought quick and quiet accommodations on trade issues. But the interruption in rare earth supplies is the latest sign from Beijing that Chinese leaders are willing to use their growing economic muscle.

“The embargo is expanding” beyond Japan, said one of the three rare earth industry officials, all of whom insisted on anonymity for fear of business retaliation by Chinese authorities.

They said Chinese customs officials imposed the broader restrictions on Monday morning, hours after a top Chinese official summoned international news media Sunday night to denounce United States trade actions.

China is denying the report.

Look for plenty of congressional posturing on this — without any self-awareness of how eco-nitwit-ism helped sow this mess — when lawmakers return to Capitol Hill.

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Comments


  1. #1
    On October 20th, 2010 at 10:58 am, verogolfer said:

    Yes, underreported but very important story. China can put the squeeze on us now, and won’t hesitant to do so

  2. #2
    On October 20th, 2010 at 11:01 am, letget said:

    This really shouldn’t be a surprise. china has our money, getting real estate, oil, gas, coal leases on land and water. They will soon have half our Republic it we don’t put a stop to this. The sad fact, it doesn’t seem this bho, team, and the dc bunch will do a blooming thing to help American’s!
    L

  3. #3
    On October 20th, 2010 at 11:02 am, tarpon said:

    Why would anybody report that electric cars depend on rare earth materials? You don’t want consumers figuring that out until after the buy the suicide clown car electrics.

    Maybe the word “RARE” should be forced by government mandate to be placed on the window stickers? Just to make sure consumers know what they are buying.

    Brings back memories of diamonds are rare …

  4. #4
    On October 20th, 2010 at 11:06 am, spaceycakes said:

    Brings back memories of diamonds are rare …

    unfortunately, most believe that today.

  5. #5
    On October 20th, 2010 at 11:09 am, battleaxe said:

    We don’t need the rare earths. The taxes, red tape, unions, environmental requirements, and lawyering have already forced the manufacturing of anything of consequence to China.

  6. #6
    On October 20th, 2010 at 11:11 am, ArizonaNeanderthal said:

    China does have us by the short hairs in more ways than one. She is a threat to us, has been for a generation and will continue to be. That trade makes friends is foolish. Germany was both Poland’s and Russia’s major trading partner-what did it get them?

  7. #7
    On October 20th, 2010 at 11:22 am, RedDog said:

    Any fool could see this coming. And China is much more militant and aggressive than the Soviets ever were. They are a fearsome enemy under any circumstances, but when they have significant material advantages? Yikes. Reminds me of the Democrats when they siezed power in 2008. “Katie bar the door!”

  8. #8
    On October 20th, 2010 at 11:22 am, ITookTheRedPill said:

    When China decides to take Taiwan, we won’t be in a position to stop them.

  9. #9
    On October 20th, 2010 at 11:23 am, Truesoldier said:

    Look for plenty of congressional posturing on this — without any self-awareness of how eco-nitwit-ism helped sow this mess — when lawmakers return to Capitol Hill.

    Or any kind of significant legislation that will truly address the situation. I would not be surprised at all if Obama, Pelosi, Reid, etc claim that this proves that moving forward with cap and tax is the right thing to do.

  10. #10
    On October 20th, 2010 at 11:38 am, Flyoverman said:

    It’s the price you pay when you want to make money by dealing with a poisonous snake who hates you.

  11. #11
    On October 20th, 2010 at 11:38 am, txvet2 said:

    Meanwhile, this administration keeps pushing environmental policies and vehicle standards that will require ever increasing quantities of the rare earths only China can provide. Welcome to the Chinese Century.

  12. #12
    On October 20th, 2010 at 11:40 am, walterc said:

    ITookTheRedPill said:

    When China decides to take Taiwan, we won’t be in a position to stop them.

    Nor the desire. This bunch in charge have no concept of “enemy”. Hold hands, group hug and a round of Kumbya and all will be right with the world.

    Note to self, stock up on food, load more ammo.

  13. #13
    On October 20th, 2010 at 11:40 am, cheapseat said:

    America really needs to put America’s best interest foremost in trade arrangements, as the other guy is surely putting his country’s best interests into his negotiations. One world utopia through trade, to put in Merkel terms, IS AN UTTER FAILURE FOR THE U.S.

  14. #14
    On October 20th, 2010 at 11:41 am, Regulus said:

    What we’re seeing with our increasing reliance on hostile foreigners to supply the raw materials for our easy way of life is reminiscent in a way of what Arthur “Bomber” Harris said of Germany “reaping the whirlwind” in World War II: for too long we’ve assumed that we can let everybody else “rape Mother Gaia” while we’d keep our pristine little paradise here at home, and not pay a price for it.

    And now the whirlwind for that foolish short-sightedness is beginning to blow.

  15. #15
    On October 20th, 2010 at 11:49 am, wescam said:

    I am of the opinion this is a market-based decision for them. They have an increasing demand for these REs and don’t see profits for exporting them as a win.

    More about discovery and production from USGS:

    http://minerals.usgs.gov/minerals/pubs/commodity/rare_earths/mcs-2010-raree.pdf

  16. #16
    On October 20th, 2010 at 11:51 am, fulldroolcup said:

    Leftnoid skulls are already exploding over the realization that they’re trading “dependence on foreign oil” for “dependence on foreign rare earth metals”. Where’s the “public virtue” in THAT?

    The Law of Unintended Consequences has thus bit them hard on the butt. It’s just silly to talk about “economies of scale” eventually bringing down the high cost of EV batteries, when the sole supplier of the exotic materials needed to make them has a stranglehold on availability and price.

  17. #17
    On October 20th, 2010 at 11:56 am, tonyr951 said:

    The Mountain Pass REE Mine here in the CA high desert is supposed to reopen soon.

  18. #18
    On October 20th, 2010 at 12:13 pm, Mister P said:

    Is the US the only country that does not act in its own best interest? We have become a globalist nation among nationalist predators. We have no regards for our borders. Punish our own citizens over people here illegally. Act as world police force, while becoming the number 1 target of all nations and extremists. Insists on sending jobs overseas and be dependent on other nations for energy and metals. Now the Chinese have figured out how to tighten the screw on us. The Marxists may finally get what they want, only to find that it is worthless.

  19. #19
    On October 20th, 2010 at 12:18 pm, st_james said:

    Forget Spanish. We should be teaching our kids Mandarin. At least then they will be able to beg for mercy in a fashion intelligible by their Chinese rulers.

  20. #20
    On October 20th, 2010 at 12:38 pm, babiesgrandma said:

    ITookTheRedPill said:
    When China decides to take Taiwan, we won’t be in a position to stop them.

    Don’t worry – we will storm the gates with our troops, uh, we will hold them accountable by our air power, uh, we will set up a cartel to keep them from getting goods so they could survive, uh, we can cry and beg for mercy when their hammer comes down hard.

  21. #21
    On October 20th, 2010 at 12:38 pm, Flyoverman said:

    On October 20th, 2010 at 12:18 pm, st_james said:

    Forget Spanish. We should be teaching our kids Mandarin. At least then they will be able to beg for mercy in a fashion intelligible by their Chinese rulers.

    Planning on sitting on your single point of contact and letting that happen?

    Boy, that’s the old American Spirit. /sarc

  22. #22
    On October 20th, 2010 at 12:40 pm, Flyoverman said:

    ITookTheRedPill said:

    When China decides to take Taiwan, we won’t be in a position to stop them.

    You’re right; you won’t be, nor will I. That’s why the Seventh Fleet is there.

  23. #23
    On October 20th, 2010 at 12:45 pm, happyscrapper said:

    Don’t we have many of these rare metals here, available, if we just go get them?? And, isn’t it the environmental wackos who are preventing this? I do believe we need to concentrate on defeating the environmental terrorists, and soon!!

    We need to drill for our own oil.
    We need to mine our own coal and metals
    We need to build more power plants
    We need to build more oil refineries

    Somehow, the environmentalists who are preventing this country from prospering need to be put in their place (which, in my opinion is prison).

    Any ideas how to defeat them? It has become a national emergency, but you know the regressives won’t do anything. They will just let us implode.

    When an entire nation is held hostage by policies that protect a tiny fish and destroys the lives of thousands of farmers, you know we have GOT TO DO SOMETHING! This sh#% has to cease!!

  24. #24
    On October 20th, 2010 at 12:48 pm, rocketman said:

    ***
    As I remember the rare earth elements are important in producing very high strength permanent magnet materials. Some are used in high performance motors and generators for military and commercial items.
    ***
    Others are used to get very high thermal electron emission in older vacuum tubes. And also for use in high power microwave amplifiers used in radars and missiles.
    ***
    But this is like the Comrade Obama (PBUH) Regimes shutting down domestic oil, natural gas, and mining sources while forcing our economy to waste money buying overseas. It’s almost like they want our country to fail.
    ***
    I don’t think this is a “bug”–it’s a feature! The more our economy fails–the easier the socialists / marxists / communists can take over the U.S.A. and make it into their new dream of the United Socialistic States of Amerikka.
    ***
    It worked out very well in Cuba and Zimbabwe–and Chavez is giving it his best shot in Venezuela now.
    ***
    Thirteen days and counting!
    ***
    John Bibb
    ***

  25. #25
    On October 20th, 2010 at 12:51 pm, Rogue Cheddar said:

    And with foreign creditors buying up mountains of our debt, can we even call ourselves a “Sovereign Nation” anymore?

  26. #26
    On October 20th, 2010 at 12:55 pm, happyscrapper said:

    It’s almost like They want our country to fail.
    Fixed it for you, Rockeman!

  27. #27
    On October 20th, 2010 at 12:56 pm, letget said:

    rocketman#25,
    We voted yesterday in early voting. It is great to see the great number of people coming out to vote here in S TX. I can hardly wait for the late Nov.2 election results around the nation! Now, if we can get the good ole r’s in the house and senate to help us stop this train wreck in dc! We feel the TP men and women will help us out, they better do what they say they will do!
    L

  28. #28
    On October 20th, 2010 at 12:57 pm, happyscrapper said:

    On October 20th, 2010 at 12:51 pm, Rogue Cheddar said:
    And with foreign creditors buying up mountains of our debt, can we even call ourselves a “Sovereign Nation” anymore?

    Well, we can’t call ourselves “Sovereign” when we won’t even protect our borders!

  29. #29
    On October 20th, 2010 at 1:04 pm, happyscrapper said:

    Off topic and hilarious!

    http://www.wtop.com/?nid=25&sid=2085956

  30. #30
    On October 20th, 2010 at 1:09 pm, ArizonaNeanderthal said:

    Teach the kids Spanish-this is good.
    Teach them Mandarin-I love the oranges.
    And teach them the Constitution, their duties and rights as citizens and teach them marksmanship.

    As for defense–the greatest military in the world means nothing if there is treason at the top. Bow baby Bow doesn’t cut it.
    ===
    Let your sidearm be like American Express:
    Don’t Leave home without it.

  31. #31
    On October 20th, 2010 at 1:19 pm, AlohaGuy said:

    Obama Twist: “Please Mr. Wen, may I have some more?”

  32. #32
    On October 20th, 2010 at 1:21 pm, txvet2 said:

    On October 20th, 2010 at 12:40 pm, Flyoverman said:

    ITookTheRedPill said:

    When China decides to take Taiwan, we won’t be in a position to stop them.

    You’re right; you won’t be, nor will I. That’s why the Seventh Fleet is there.

    Within a very few years, we won’t be able to sail that fleet past Hawaii without subjecting nuclear attack.

  33. #33
    On October 20th, 2010 at 1:22 pm, txvet2 said:

    Oops, proofing error. “subjecting it to….”

  34. #34
    On October 20th, 2010 at 1:23 pm, swede said:

    happyscrapper said:
    Don’t we have many of these rare metals here, available, if we just go get them??

    Yes indeedy. From what I’ve read, this is just a new mashup of an old tune. Remember when the Chinese were dumping computer chips below cost in the 90′s to corner the market? Ended up backfiring when import regs and tarrifs were imposed.

    China did the same with “rare earth metals” (which in fact are not “rare” at all – they are found on every continent, including here). When they dropped the price below mining and refining costs no one did anything – so I believe China now controls something like 97% of the market. Mines will start producing now to meet the demand, but in the mean time China will make a killing.

  35. #35
    On October 20th, 2010 at 1:23 pm, RedDog said:

    On October 20th, 2010 at 11:40 am, walterc said:
    ITookTheRedPill said:

    When China decides to take Taiwan, we won’t be in a position to stop them.
    Nor the desire. blockquote>

    Taiwan and the ChiComs both lay claim to those Japanese islands, the Ryukus? I say let them have Taiwan.

    As far as the 7th fleet, Obama will see to it that they have no support. He is gutting the Navy as we speak. And what’s up with the Pentagon taking openly gay applicants based on an unelected judges ruling?? I thought they only took orders from the CIC?

  36. #36
    On October 20th, 2010 at 1:25 pm, RedDog said:

    Dang…

    On October 20th, 2010 at 11:40 am, walterc said:
    ITookTheRedPill said:

    When China decides to take Taiwan, we won’t be in a position to stop them. Nor the desire.

    Taiwan and the ChiComs both lay claim to those Japanese islands, the Ryukus? I say let them have Taiwan.

    As far as the 7th fleet, Obama will see to it that they have no support. He is gutting the Navy as we speak. And what’s up with the Pentagon taking openly gay applicants based on an unelected judges ruling?? I thought they only took orders from the CIC?

  37. #37
    On October 20th, 2010 at 1:27 pm, TooMuchTime said:

    Off topic and hilarious!

    http://www.wtop.com/?nid=25&sid=2085956

    hahahahahahahahahahaha!

    I’d love to see the Stewart/Colbert event cancelled because they have no port-o-potties for their attendees.

    Just like liberals. They don’t plan ahead. And yes, that can be a pun!

  38. #38
    On October 20th, 2010 at 2:03 pm, happyscrapper said:

    On October 20th, 2010 at 1:27 pm, TooMuchTime said:
    Just like liberals. They don’t plan ahead. And yes, that can be a pun!

    Best pun I’ve heard in a LONG time!! :grin: Good job!

  39. #39
    On October 20th, 2010 at 2:04 pm, happyscrapper said:

    P.S. I LOVE puns!

  40. #40
    On October 20th, 2010 at 2:09 pm, ITookTheRedPill said:

    On October 20th, 2010 at 12:40 pm, Flyoverman said:

    That’s why the Seventh Fleet is there.

    Yes, and the Chinese have been significantly adding to their Navy.
    Do we know how many subs are hidden in the mountain at this base?

    And remember this?

    Nov 13, 2006

    A Chinese submarine approached a US aircraft carrier in the Pacific Ocean last month and surfaced within firing range of its torpedoes and missiles before being detected, The Washington Times reported Monday. The newspaper said the encounter highlighted China’s continuing efforts to prepare for a possible future conflict with the United States…

  41. #41
    On October 20th, 2010 at 2:16 pm, Dexter Alarius said:

    When China decides to take Taiwan, we won’t be in a position to stop them.

    Nevermind the capability, the problem is we won’t have leadership with the cojones to stop them. That’s why I believe they will make their move within 2 years.

  42. #42
    On October 20th, 2010 at 2:17 pm, Mister P said:

    You’re right; you won’t be, nor will I. That’s why the Seventh Fleet is there.

    Soon to be called the Seventh Gay Fleet, as straights abandon the armed services.

  43. #43
    On October 20th, 2010 at 2:26 pm, ITookTheRedPill said:

    It’s not just a military challenge… Obama fully knows that by weakening our country economically, he is weakening our military.

    Could Sen. Obama’s Dire Warnings Be President Obama’s Current Plan?

    Listen to what Obama said about the U.S. and China in 2008, and then look at what he has done since January 2009.

  44. #44
    On October 20th, 2010 at 2:27 pm, happy2behere said:

    This story is a consequence of our crippling debt and a harbinger of things to come.

  45. #45
    On October 20th, 2010 at 2:30 pm, ITookTheRedPill said:

    Obama said on more than one occasion:

    “For a nation to remain a preeminent military power, it must remain a preeminent economic power.”

    He knows that a perpetually weak economy will eventually lead to a weak military. I believe it’s part of his plan.

  46. #46
    On October 20th, 2010 at 2:47 pm, stillontheroad said:

    ITookTheRedPill said:

    It is the difference in outlook – the Chinese do everything with long term goals in mind – The US has always had a knee jerk reactive thinking Government.

  47. #47
    On October 20th, 2010 at 3:36 pm, One_American said:

    Mark my words: China and/or Russia will soon put the squeeze on Mongolia to keep them from selling us rare earth metals. The Communists are out to destroy this country – along with the Communists within our borders.

  48. #48
    On October 20th, 2010 at 4:24 pm, Flyoverman said:

    On October 20th, 2010 at 2:09 pm, ITookTheRedPill said:

    A Chinese submarine approached a US aircraft carrier in the Pacific Ocean last month and surfaced within firing range of its torpedoes and missiles before being detected, The Washington Times reported Monday.

    An that Chinese Captain was likely unaware he was being trailed the entire time by a US attack sub. Sucks to be him in a real war.

  49. #49
    On October 20th, 2010 at 5:20 pm, AlohaGuy said:

    Flyoverman said:

    On October 20th, 2010 at 2:09 pm, ITookTheRedPill said:

    A Chinese submarine approached a US aircraft carrier in the Pacific Ocean last month and surfaced within firing range of its torpedoes and missiles before being detected, The Washington Times reported Monday.

    An that Chinese Captain was likely unaware he was being trailed the entire time by a US attack sub. Sucks to be him in a real war.

    The Chinese tested an anti-ship missile a few weeks ago, designed to fly 900 miles and accurate enough to hit an aircraft carrier. This has nothing to do with the Clintons and Gore taking Chinese money and in return giving them “peaceful” missile targeting technology and I don’t want anyone here suggesting that they would sell out their own country to gain and stay in power, nor hide evidence of crimes or have friends mysteriously wash up in parks or anything.

  50. #50
    On October 20th, 2010 at 5:37 pm, ITookTheRedPill said:

    AlohaGuy,

    In my opinion, it appears that the Clintons represent the Chinese Communists’ interests, and Obama represents the Russian Communists’ interests.

    Two communist regimes who fought a knock-down, drag out fight for the Democratic nomination for President of our country… via their proxies.

  51. #51
    On October 20th, 2010 at 5:41 pm, T-Bone said:

    On October 20th, 2010 at 1:27 pm, TooMuchTime said:
    Off topic and hilarious!

    http://www.wtop.com/?nid=25&sid=2085956
    hahahahahahahahahahaha!

    I’d love to see the Stewart/Colbert event cancelled because they have no port-o-potties for their attendees.

    Just like liberals. They don’t plan ahead. And yes, that can be a pun!

    They are full of it so the need is there.

    And are they issued one piece of toilet paper each?

  52. #52
    On October 20th, 2010 at 6:14 pm, wren said:

    The key paragraph in the NYT article is on page 2.

    Despite their name, most rare earths are not particularly rare. But most of the industry has moved to mainland China over the last two decades because of lower costs and steeply rising demand there as clean energy industries have expanded rapidly.

    http://www.nytimes.com/2010/10/20/business/global/20rare.html?pagewanted=2

    We would be mining “rare earths” in the U.S. too, if we hadn’t chased the industry to China with our high costs and government regulations.

  53. #53
    On October 20th, 2010 at 8:27 pm, Republicanvet said:

    On October 20th, 2010 at 1:27 pm, TooMuchTime said:

    Off topic and hilarious!

    http://www.wtop.com/?nid=25&sid=2085956

    hahahahahahahahahahaha!

    I’d love to see the Stewart/Colbert event cancelled because they have no port-o-potties for their attendees.

    Just like liberals. They don’t plan ahead. And yes, that can be a pun!

    I doubt they cancel it. They will just do like libs always do and go in the street, then blame the Marines for having all the porta-johns.

    Can you imagine the loads of trash from their last event mixed with loads of poo?

  54. #54
    On October 20th, 2010 at 8:30 pm, Republicanvet said:

    On October 20th, 2010 at 2:09 pm, ITookTheRedPill said:

    On October 20th, 2010 at 12:40 pm, Flyoverman said:

    That’s why the Seventh Fleet is there.

    Yes, and the Chinese have been significantly adding to their Navy.
    Do we know how many subs are hidden in the mountain at this base?

    I wonder how many Tomahawks are pre-loaded with coordinates on those tunnel mouths.

    Kinda hard to float a sub out when the door is closed with intent.

  55. #55
    On October 20th, 2010 at 11:04 pm, plymouthacclaim said:

    On October 20th, 2010 at 2:09 pm, ITookTheRedPill said:
    On October 20th, 2010 at 12:40 pm, Flyoverman said:

    Do we know how many subs are hidden in the mountain at this base?

    Looks like a perfect Bond Villain lair to me.
    Kind of reminds me of The Spy Who Loved Me.

  56. #56
    On October 21st, 2010 at 11:59 am, TK-421 said:

    On October 20th, 2010 at 12:40 pm, Flyoverman said:

    Umm you do know China has,

    One, WAY MORE AIRCRAFT in the area than us, and not 20 year old cast offs, but new state of the Art SU-27′s (With stolen US F-16 Radar systems might I add) may be building stealth aircraft as well, China unlike us doesn’t have a national defense review that records every last thing we have for public viewing.

    TWO, the Chinese Navy has been investing in Long Range Missiles and Submarines at an alarming rate, though older they have jumped hugely in numbers and with hidden bases popping up all the time seem to be growing by 25% every year if not more. Often we know this by chance occerances NOT by them saying it.

    THREE, China see’s us as an enemy and the number one threat to global peace, which the Chinese Militaries mandate is to maintane global peace.

    As to the Chinese Sub Captian keep in mind back when this happend we were ALOT Stronger. Thanks to enviromentalist the types of Sonar we can and do use is limited, out anti subforce is a JOKE, keep in mind our subs are Attack Subs, yes they can provide protection to the Fleet however, that takes them away from the traditional Attack role they were made for. The Sub Hunting planes we have used and Attack aircraft for the most are being hacked up, removed from service, or no longer serve that fucntion. The Bulk of our Ocean going airpower is not in the hands of F-18 Hornets and the F-15 land based aircraft are quitely being removed from service for the F-35 that many Airforce pilots say is a technological DEATH TRAP. Meanwhile the Chinese are hashing together Russian and American Tech with Chinese innovation, thus gaining an air to air platform that is ready for action. And Cheap.

    The US military of today is a robot loving nerd. All of our “wonder” weapons need rare metals that we may now no longer be able to count on, while our idustrial basin to build the older American weapons is well its gone. Ignore this facts if you want and fly as many flags as you wish, but we need to Re-arm and withdrawl from orginizations such as NATO and the UN. We are not the biggest kid on the block as we once were. Japan though it was the biggest kid on the block, it had the best hardware in 1941, it shoved everyone aside. In a few years it was stomped and ruined, can we affoard the same complacency, when the Factories to build things like the M1-A1 MBT and the Sentry E3 are no longer around as is the case now? When the Navy readily states should the battleships be needed again we lack the machines to build replacement ammo for them, never mind the technical skills to even know how to work the guns!?

    Nationalist pride is no subsitute for bullets. But I find it funny we must be enemies of the Chinese, heh if not for politics an alliance with them would be most benafical to the US. Unlike that with the Europeans who we defend with our blood while they bury us economically. But long live the Anglo-Saxen Alliance…

  57. #57
    On October 21st, 2010 at 2:17 pm, Tazed and Confused said:

    What do you expect. Debtor is slave to the lender. And the debtor is a spineless, wimpy, apologetic coward blaming all but himself for the mess we’re in.

    And I’ll bet he was an ineffectual community organizer too.

    Is it 2012 yet?

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