nuclear-news

The News That Matters about the Nuclear Industry

China’s economic advantage in control of rare earths

Control of rare earths gives China a fresh economic advantage, Las Vegas Sun, By Llewellyn King, Aug. 10, 2017……China controls the world’s production and distribution of rare earths. It produces more than 92 percent of them and holds the world in its hand when it comes to the future of almost anything in high technology.

Rare earths are great multipliers and the heaviest are the most valuable. They make the things we take for granted, from the small motors in automobiles to the wind turbines that are revolutionizing the production of electricity. For example, rare earths increase a conventional magnet’s power by at least fivefold. Strategically, they are the new oil.

Rare earths are also at work in smartphones and computers. Fighter jets and smart weapons, like cruise missiles, rely on them. In national defense, there is no substitute and no other supply source available…….

If President Donald Trump — apparently encouraged by his trade adviser Peter Navarro, and his policy adviser Steve Bannon — is contemplating a trade war with China, rare earths are China’s most potent weapon.

A trade war moves the rare-earths threat from existential to immediate.

In a strange regulatory twist the United States — and most of the world — won’t be able to open rare-earths mines without legislation and an international treaty modification. Rare earths are often found in conjunction with thorium, a mildly radioactive metal and a large regulatory problem.

The Nuclear Regulatory Commission and the International Atomic Energy Agency have defined thorium as a nuclear “source material” that requires special disposition. Until these classifications, thorium was disposed of along with other mine tailings. Now it has to be separated and collected. ….

Meanwhile, future disruptions from China won’t necessarily be in the markets; they could be in the obscure but vital commodities known as rare earths: China’s not-quite-secret weapon. https://lasvegassun.com/news/2017/aug/10/control-of-rare-earths-gives-china-a-fresh-economi/

Advertisements

August 12, 2017 - Posted by | business and costs, China, politics international, RARE EARTHS

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: