China Shakes Up Rare Earth Industry

Tue, May 31, 2011

By Michael Montgomery

It is no secret that China dominates the production of rare earth elements. Over 95 percent of world production comes from China, and over the last few years the nation has tightened its control over the production and export of the 17 elements. Further controls over the industry have come out of the last few weeks. Included in these developments is a major shake up, the establishment of a rare earth exchange in Baotou, Inner Mongolia.

Editor: This is important news because rare earth elements are essential ingredients used across the whole range of modern technology products. The Chinese strategy of creating export controls on these in a market where they have a virtual monopoly has the potential of creating dangerous tensions between China and the US in particular.
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