Sign up USA
Proactive Investors - Run By Investors For Investors

Magnet producers call on US Government to address looming "supply crisis" in rare earth metals

Magnet producers call on US Government to address looming "supply crisis" in rare earth metals

High-performance magnet producers in the US are calling on the government to unite federal agencies in tackling a perceived looming rare earth metals "supply crisis".

This follows the decision by Arnold Magnetics to sell one of its Chinese businesses to invest in rare earth production in a venture with Chevron oil offshoot, Molycorp Minerals, in the US. Arnold also plans to increase magnet production in Europe.

The US Magnet Materials Association (USMMA), founded in 2006, has submitted a proposal directed at the federal departments of Commerce, Energy, State and Defence, as well as trade and scientific departments.

Government financing guarantees and investments in the supply chain could be more effective than a physical stockpile in ensuring US access to rare earths, according to Molycorp Mineral's CEO, Mark Smith. "China, Japan, (South) Korea are all stockpiling" strategic metals and minerals such as rare earths, he said.

He noted, however, that there are challenges to building a traditional stockpile of rare earths due to their relatively small quantities and the fact that they can be subject to big price swings, which makes long-term planning difficult.

Supply of rare earths, which include elements such as lanthanum, cerium and neodymium that are used in magnets, metal alloys and batteries, is currently dominated by China.

Source: Metalsplace.com



Register here to be notified of future PROAC Company articles
View full PROAC profile View Profile

Proactiveinvestors Timeline

Related Articles

E-mail
October 18 2016
Geographical expansion, product innovation and strategic partnerships continue to be well executed, said house broker finnCap
Digital marketing
March 28 2017
Michael Karg, Ebiquity’s CEO, said:“We have already made good progress with our growth acceleration plan, which will replicate our service offering across key territories, further strengthening our ability to service global clients.”
learning symbol on a keyboard
January 16 2017
The English language learning specialist is confident it can kick on in the coming year
Copyright © Proactiveinvestors.com, 2017. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use