Rare Earth Minerals' Scarcity Worrisome for Growing Tech Sector

 PBS Newshour broadcast.  June 14, 2010

Global Collaboration Needed for Clean Energy Initiatives

Clean Energy and Energy Independence are not regional concerns.  These are societal driven goals for virtually all the developed countries of the world. The acute vulnerability of global supply chains for the Rare Earth (RE) technologies, which are enabling for Clean Energy and Energy Independence, is a threat to global economies and the global environment. Solutions to these vulnerabilities must come through the global collaboration of stakeholders.

REITA represents a consortium of global industry and academic stakeholders who have chosen to organize together through the association. The members of REITA span the range of stakeholders from mining companies to Original Equipment Manufacturers (OEMs) of Hybrid Electric Vehicles (HEVs), Plug-In hybrids, all electric vehicles, Compact Fluorescent Lamps (CFLs) and direct drive (gearless) wind turbines.  REITA members. 

After decades of reengineering, corporate rationalizations, and the “offshoring” of manufacturing and innovation, the world’s developed economies are virtually devoid of entire supply chains for vital rare earth technologies[1]. One hundred percent of RE raw materials for Clean Energy comes from China today. With China forecasted, in as little as two to three years, to be unable to meet the 10 -15 % annual growth in global demand for certain rare earth products – global industry vulnerability is clearly evident.

The issues go much deeper than strictly the availability of RE raw materials outside of China.  Of the developed countries, Japan is the only one that retains significant downstream supply chain capabilities to make the RE products that go into gearless wind turbines, CFLs, Hybrid and all electric vehicles.  In the EU, East Asia and the US these capabilities were largely abdicated years ago and whole supply chain infrastructures will need to be created.

REITA welcomes all global stakeholders who support REITA Members Shared Beliefs / Principles to join our association. 

Please contact me with your questions and comments.

Yours truly,

Keith A. Delaney
Executive Director
Rare Earth Industry and Technology Association