China’s virtual monopoly over the global rare earth metals market – it accounts for 97 percent of worldwide production – is a troubling area of potential risk for clean every technologies ranging from wind turbines and electric vehicles to fuel cells and energy efficient lighting, a new report says.
According to Pike Research the first, profound sign of China’s influence over the rare earth metals market was the price spike that followed the Asian nation’s imposition of export quotas in July 2010.
Although positive initiatives offer the potential for market alleviation in the long term, the short term picture for the clean technology will be characterized by a significant supply risk brought about by the export quotas, the market analyst says.
“This will almost certainly come to influence the adoption and commercialisation of certain technologies across the clean tech industry,” the report continues. “It is therefore becoming increasingly important for respective clean technology manufacturers to assess their rare earth needs and explore options for reducing dependence.
“Up to this point, however, there has been very little evidence of this kind of assessment despite the increased market prices for critical rare earth metals,” it adds.
This Pike Research report provides a thorough analysis of supply and demand dynamics, assessment of risk, and pricing scenarios for the utilization of rare earth metals in clean tech applications.
The study includes profiles of key industry players and their strategies to address the need for rare earth metals in the clean tech industry. Detailed demand forecasts, segmented by rare earth metal, application, and world region, are provided through 2017.