China’s ban on exporting rare earth element materials recently highlights a vulnerability with the US economy.

Yttrium

Rare earth materials are something that many people don’t think of, but they play a crucial role in modern life and technology.

Rare earth metals and alloys that contain them are used in many devices that people use every day such as: computer memory, DVD’s, rechargeable batteries, cell phones, car catalytic converters, magnets, fluorescent lighting and much more.

During the past twenty years there has been an explosion in demand for many items that require rare earth metals. Twenty years ago there were very few cell phones in use but the number has risen to over 5 billion in use today. The usage of computers and DVDs has grown almost as fast as cell phones.

Many rechargeable batteries are made with rare earth compounds. Demand for the batteries is being driven by demand for portable electronic devices such as cell phones, readers, computers and cameras.

Several pounds of rare earth compounds are in batteries that power electric vehicles and hybrid-electric vehicles. As concerns for energy independence, climate change and other issues drive the sale of electric vehicles the demand for batteries made with rare earth compounds will climb even faster.

Rare earths are used as catalysts, phosphors and polishing compounds. These are used for air pollution control, illuminated screens on electronic devices and optical-quality glass. All of these products are expected to experience rising demand.

Rare earth materials are also extensively used in industrial applications. They are found everywhere from diesel additives to high energy lasers and magnets.

Neodymium

The United States has the worlds third largest reserve of rare earth elements. Considering  the importance of these materials to our economy and the ever increasing demand for them, you would think extracting, processing and exporting rare earth materials would be priority within the United States. If you thought that, you would be wrong. The United States has only one inactive mine:

The U.S. Geological Survey has examined national reserves of the elements as part of an assessment of the threat posed to defense by limited rare earth supplies.

It found that while the United States has the third-largest reserves in the world after China and the Commonwealth of Independent States, nations that were formerly part of the Soviet Union, the only rare earths mine the country ever operated, at Mountain Pass, California, is currently inactive.

Mining could restart there within two years, but any other new mines would be a long time coming online, the report says.

The United States imports 100% of our rare earth materials. Mostly from China. This situation makes our economy extremely vulnerable to ‘disruptions‘ in rare earth material supply.

China’s temporary ban of rare-earth-mineral exports to the United States several weeks ago highlighted our vulnerability in that area. The U.S. imports all its rare earth minerals, which aren’t rare at all, but are vital to products ranging from solar energy to computers. Incoming House Natural Resources Committee Chairman Doc Hastings, R-Wash., hopes to change the dangerous scenario, The Hill reports.

Raw materials and mining are the foundation of any economy.

Gadolinium

Since our long term economic outlook and national debt isn’t exactly looking  all that rosy, it only makes sense to start utilizing our natural resources to strengthen our economy. Unfortunately, our government is more interested in implementing roadblock after roadblock to prevent this from happening.