Molycorp enters rare earth supply chain

By Freddie Pierce
What do precision-guided missiles, hybrid car batteries and iPads have in common? Theyre all made from rare earth components (http://en.wikipedia.org/w...

What do precision-guided missiles, hybrid car batteries and iPads have in common?

They’re all made from rare earth components (http://en.wikipedia.org/wiki/Rare_earth_element), a set of 17 chemical elements on the periodic table. Despite their name, rare earths are commonly found in the Earth’s crust.

Don’t tell that to China, as the world’s leading producer of rare earths is starting to make turn the rare earth supply chain into just that.

Rare.

As China restricts the amount of rare earth in the global supply chain, prices are skyrocketing. Prices have almost increased tenfold from a year ago, with the cost per tonne reaching a record-high of $109,036 in February.

Last July, the same amount of rare earth was valued at $14,405.

China produces upwards of 95 percent of the world’s rare earth. Having such a privileged position in the rare earth supply chain allows China to set the amount of rare earth on the market, which drives up prices when China decides to restrict its rare earth exports.

SEE OTHER TOP STORIES IN THE WDM CONTENT NETWORK

Apple iPad 2: The most successful Apple launch ever?

Nike to build logistics center in China

Why China’s rising procurement industry continues to attract foreign investment

Check out the latest issue of Supply Chain Digital!

There is some hope for the rare earth supply chain, however, as U.S. based rare earth producer Molycorp announced last week that they’ve acquired a processing facility to manufacture rare earth magnets.

The acquisition allows Molycorp to turn rare earth they mine into a finished product. While Molycorp won’t ever grow into a rare earth juggernaut like China, the movement into the market could provide some relief a supply chain that has been strangled by China’s rare earth whims.

Molycorp is expected to compete with Canada’s Rare Element Resources and Neo Material Technologies and Australia’s Arafura and Lynas.

Share

Featured Articles

PwC Examines Digital Trends in Operations for 2024

PwC’s Digital Trends in Operations Survey for 2024 demonstrates a significant proportion of firms are struggling to achieve their desired outcomes

P&SC LIVE New York 2024 Virutal - SAVE THE DATE

Don’t miss out on your chance to attend Procurement & Supply Chain LIVE New York in 2024 Virtually, 5-6 June

Charities & NGOs Submit to The Global P&SC Awards for FREE

The Global Procurement & Supply Chain Awards hosted at P&SC LIVE London Sept 2024 welcomes charities and NGOs to submit for FREE

Procurement & Supply Chain LIVE: 2024 Dates to Remember

Digital Supply Chain

Gartner Unveils Top Supply Chain Technology Trends for 2024

Technology

What the Latest CSDDD Milestone Means for Supply Chains

Sustainability