The Costs of Dependence
The price of rare earth metals has gone up again – according to the New York Times, world prices have doubled just in the last four months. This is in addition to a fourfold increase in prices during 2010. The reason: increasing demand for rare earths, combined with China’s (near) monopoly of the rare earths market, has caused a shortage of these metals.
Rare earths are used in a variety of applications, such as iPods, hybrid cars, and smart bombs. According to the article:
[C]onsumers in many cases will barely notice the soaring cost of rare earths. Even though the materials are crucial to the performance of everyday equipment like automotive catalytic converters and laptop computer display screens, rare earths typically are used only in trace quantities.
In terms of national security, however, cost isn’t necessarily the most important issue; availability is of greater concern. China’s dominance of the market, its own increasing demand for these resources, and its willingness to use the export of rare earth metals as a political tool make for a dangerous combination for the United States. Rare earths are used in a host of military applications, such as smart bombs, radar, night vision goggles, and electronics such as computers and laptops. A shortage of these metals could mean delays in weapons production (as has already happened).
What this article really highlights is the need for U.S. policymakers, particularly those in the defense and energy sectors, to continue working towards greater independence in the rare earths supply. DOE’s Critical Materials Strategy is an excellent start. In another positive step, Molycorp, the only U.S. company that produces rare earths currently, is refurbishing its Mountain Pass, California mine and has recently invested money in a mine in Estonia.
The U.S. should also continue to research new recycling techniques and rare earth alternatives to reduce its reliance on China for these valuable minerals. Our defense capabilities should not rely on such a weak supply chain.
