• 4 minutes Pompeo: Aramco Attacks Are An "Act Of War" By Iran
  • 7 minutes Who Really Benefits From The "Iran Attacked Saudi Arabia" Narrative?
  • 11 minutes Trump Will Win In 2020
  • 15 minutes Experts review Saudi damage photos. Say Said is need to do a lot of explaining.
  • 4 hours Ethanol is the SAVIOR of the Oil Industry, Convenience Store Industry, Automotive Supply Chain Industry and Much More!
  • 8 mins Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 4 mins Let's shut down dissent like The Conversation in Australia
  • 4 hours Instagram Now Banning Photos Of People At Gun Ranges, Claiming They Promote "Violence"
  • 10 hours Famous Manufacturer of Anti-Ethanol Additives Proves Ethanol's Safety and Benefits
  • 16 hours Collateral Damage: Saudi Disruption Leaves Canada's Biggest Refinery Vulnerable
  • 22 hours Hong Kong protesters appeal to Trump for support.
  • 22 hours Saudi State-of-Art Defense System looking the wrong way. MBS must fire Defense Minister. Oh, MBS is Defense Minister. Forget about it.
  • 12 hours One of the fire satellite pictures showed what look like the fire hit outside the main oil complex. Like it hit storage or pipeline facility. Not big deal.
  • 7 hours US and China are already in a full economic war and this battle for global hegemony is a little bit frightening
  • 12 hours Trump Accidentally Discusses Technology Used In The Border Wall
  • 15 hours Iran in the world market
Alt Text

Vanadium Spikes On New Chinese Regulations

A new regulatory measure in…

Alt Text

Chinese Rare Earth Exports Tumble As Trade War Accelerates

China, the world’s largest producer…

Alt Text

Are We Really Facing A Battery Metal Shortage?

Electric car builder Tesla foresees…

Jeb Handwerger

Jeb Handwerger

Jeb runs Gold Stock Trades – a subscription based investment newsletter that focuses on investments in the various metals sectors.

More Info

Premium Content

Rare Earth Deficiencies, Diagnosis... An Emergency Treatment Plan

A serious lack of rare earth elements is endemically afflicting the world body politic.  It has been brought on by a chronic combination of American short sightedness and Chinese need for self survival. 

It is well known that rare earths, a group of 17 atomic elements are essential for the survival of cutting edge industry in such diverse areas as nuclear launch missiles hybrid autos, wind turbines, solar devices, oncological applications, night-vision devices and petroleum production. 

Once upon a time America was a major source for these substances, but Beijing had the foresight to co-opt this essential nourishment for their own needs.  This left the rest of the world fighting for survival.  Recently China decreased the circulation of rare earths to the rest of the world by thirty five percent.  It is not too late to be waking up to the malady that threatens our economies.  We must declare an immediate offensive as a national emergency!  The U.S. future security and survival is at stake as our representatives wrote in their letter to the head of our Defense Department. For this purpose a letter has been written on January 28,2011 by three congressional leaders, Murkowski, Begich, and Coffman, to the Secretary of Defense, Robert Gates.

Remember the U.S. is historically famous for mobilizing initiatives such as the Nuclear Energy Project in Los Alamos and the Federal Strategic Petroleum Reserve stored in gigantic underground salt caverns along the Gulf of Mexico.  It is the largest supply of crude oil in the world.  A nation that could consummate such wonders should not be daunted by the current challenges.  The following treatment protocols are proposed.

1) Diplomatic solutions with Chine are inadequate.  They are only a temporary panacea to a long time cure.  China’s own needs will soon overwhelm its own production.

2) We must do away with hostile regulations that have driven U.S. manufacturing to foreign shores and prevented mining rare earths in North America.

3) Our federal officials should think of setting up a rare earth reserve similar to the aforementioned Federal Strategic Petroleum Reserve.  This would safeguard against the contingency of a supply interruption.

4) At the same time the Obama Administration should work with our legislators to provide incentives for investments required to rebuild our rare earth industry.  The lawmakers have to revamp existing regulatory hurdles and support mining companies with heavy rare earth separation needs such as Avalon’s (AVL) Nechalacho rare earth element deposit in Thor Lake, Northwest Territories.  Avalon is the most advanced heavy rare earth deposit in North America and is the most advanced towards production after Lynas and Molycorp.

5) Having overcome these obstacles, we will require the scientific expertise needed to transmute this ore into viable commercial realities.  This would necessitate the remaking of our entire educational system, emphasizing technology and engineering, mathematics and sciences with scholarships for students entering these areas. 

Investors should look for available sources and the companies which are closest to production.  Both Lynas(LYSCF) and Molycorp(MCP) are the closest to production but will not be able to satisfy the increased demand as China increases export quotas and will not fulfill the critical heavy rare earths (dysprosium, terbium, yttrium, europium) and neodymium, a critical light rare earth needed for permanent magnets.  These permanent magnets are a major part of the clean energy legislation discussed recently during President Obama’s State of the Union address.  Terbium one of the pricey heavy rare earths is heavily used in fuel cells.

The importance of our survival of our rare earth resources are a national mandate.  As Lincoln wrote, “It is time for us to disenthrall ourselves.”  It is time we support meaningful legislation which protects our most important and cutting edge technologies before it is to late.  Investors must monitor this situation closely as interest in rare earths is becoming an international geopolitical issue and there may be bidding wars to own mines closest to production.  The Western World is rare earth deficient and requires immediate action.

Disclosure: Long LYSCF and Avalon.

By Jeb Handwerger




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play