China’s ‘Rare Earths’: A Threat To America’s Strategic Standing
Minerals have always been one foundation of American greatness. The iron and coal mines of Pennsylvania, oil wells of Texas, and copper, silver, and gold mines of the west allowed us to create the industries that made America the most powerful country in the 20th century. But America’s strategic future now hangs in the balance.
The great innovators (and job creators) of the early 1900s, such as Edison and Ford, stood on the shoulders of the great miners of the late 1800s, such as Carnegie and Rockefeller. Victories in two world wars would not have been possible without access to the elements — iron, copper, nickel, etc. — from which our military might was built.
After WWII, we reached beyond our shores to establish alliances with mineral-rich nations in the Middle East and elsewhere to guarantee our strength and continued growth. Twentieth century military might was due to both our innovations and our control over the raw materials essential to them
Over the last 40 years America seems to have forgotten this. As a result, today the nation winning the battle for global control of the elements that will determine which nation will be the greatest in the 21st century is China.
The inventions of Edison, Ford, and Bell were in fact discoveries in the properties of the various elements on the periodic table. The table is populated with approximately 65 metals, each with its own unique alchemistic capabilities. The great inventions of the last century were possible because of copper’s ability to conduct electricity and iron and carbon’s ability to form structural steel.
The great innovations of the 21st century are no different, but they rely on very different metals, ones most Americans are unfamiliar with. For example, Bell’s national telephone system was possible because copper can transmit information electrically. Today’s fiber optic cables are possible because another metal at the very bottom of the periodic table, erbium, can transit information optically. Similarly, future generations of Ford’s automobile may not require either iron or oil, but they will most certainly require neodymium (electric motors) and lanthanum (batteries). Erbium, neodymium, and lanthanum are 3 of 14 elements collectively called the rare earths. The rare earths are essential to everything from modern automobiles, cell phones, televisions, and jets to countless military applications. Every Prius has 15 pounds of rare earths in it.
While the U.S. was the dominant producer of raw materials in the last century, China today controls nearly 100% of global production of rare earth metals. That’s right, nearly 100%.
Besides developing its domestic sources, China has built deep financial and political ties — as we once did — with nations around the world holding significant strategic metal reserves. It has invested billions in mineral-rich Africa alone. It is the underpinning of their foreign policy. While the U.S. continues to treat Africa as a post-colonial charity case, China’s much more forward thinking view of the continent is as a partner and important depository of strategic metals.
Our political leaders tell us the way out of our current financial crisis is through American innovation. But what if we are unable to participate in the next great American discovery simply because this time we don’t control the necessary raw materials? The millions of jobs flowing from these inventions would blossom where the materials are available. Today that place is China.
Even more threatening in the short term, China can at any moment easily challenge our military might by simply refusing to ship rare earths to America. U.S. high tech manufacturing would grind to a halt within months. This includes production of bulletproof vests (yttrium), night vision goggles (gadolinium), and the guidance systems on rockets, drones, and tanks (erbium, neodymium).
Would China actually use the threat of discontinuing U.S. rare earth shipments as a political weapon? It already has.
China did so to Japan 13 months ago. In October 2010, Japan arrested a fishing boat captain who wandered near islands in the East China Sea that both nations claim sovereignty over. In response, China instructed its customs offices to stop shipping rare earths to Japan. Within hours Japan released the captain. Japan knew it was out of business without rare earths.
-ARCH-
Arab oil
Russian gas
Chinese rare metals
good cards
in other hands
But I thought the Obama administration said that Afghanistan was just brimming, brimming mind you, with rare and valuable raw minerals worth billions of dollars. Now we want to leave? Hmmm, guess who will be happy to move right in and get those minerals (and not be too gentle about it in the process)? I’ll give you one hint: They make great and really authentic Chinese food (and no, they’re not from Chinatown in New York City). The Chinese will move in as soon as we move out. It will be interesting to see how the Afghans react to that.
I really don’t think it will matter one whit to the Chinese how the Afghanis react. Look at Tibet. Any resistance will be ruthlessly annihilated and/or condemned to a life in a mine. The Afghan people may actually cease to exist in their own country.
“While the U.S. continues to treat Africa as a post-colonial charity case, China’s much more forward thinking view of the continent is as a partner and important depository of strategic metals.”
You speak also of good deeds done by China in Africa? My impression of Chinese mining activities in Africa more resembles slave colonies than say, the Marshall Plan restructuring of the Japanese economy. How could it be any other way? Chinese racism runs very deep.
The US should most definitely use its presence in Afghanistan to raise those people out of their stone age and enjoy the mutual benefit of access to the rich deposits of rare minerals there. Is that any different than technology transfer by say, British Petroleum to the Russian Federation?
But all of this is obvious and makes sense- sorry, I know that is just not how things are done under this administration.
I also think electric cars, along with wind turbines, solar panels, and fluorescent lighting, are just distractions and are not worthy goals for production. If they were truly superior products, people would flock to them with no need of government subsidies. The subsidies are just footholds in the US economy for China to sell their goods. Every “screwy” light bulb I’ve ever seen is made in China. We need to wake up and protect our economy.
Good article, but I have to quibble with part of this sentence: “The iron and coal mines of Pennsylvania, oil wells of Texas, and copper, silver, and gold mines of the west allowed us to create the industries that made America the most powerful country in the 20th century.” I think iron in Pennsylvania had been used up by the beginning of the 20th century, and it was in Minnesota and Michigan where most of that iron ore came from.
“You speak also of good deeds done by China in Africa? My impression of Chinese mining activities in Africa more resembles slave colonies than say, the Marshall Plan restructuring of the Japanese economy. How could it be any other way? Chinese racism runs very deep.”
The INSTANT that exploitation of native labor ceases to be cost effective, you will see these ‘Colonial enterprises’ (for want of a better term) become 100% Han overnight. And God help the locals.
Very well put, . . .
Actually, China DOESN’T control the world’s supply of rare earths. The US (and others) simply are too enamored of Green Fascism to compete.
Amen brother. I used to work in the tungsten and molybdenum industries and we had to shut our mines down because the EPA rules made it cheaper to buy from China then mine our own.
At the time of this post 6 other comments were posted and had pretty fair points. I’d like to add one more.
As we have seen over the past 20 years or so , at least, our government has worked feverishly to isolate and make off limits vast tracts of resource rich land and ocean based resources. I could list several of them here, but that is unnecessary, since we all understand this is true.
At the same time all of this was going on, economic free zones have been established, 254 of them across the U.S., much the same as the one surrounding Puerto Penasco, or Rocky Point Mexico, that permits and promotes different economic liberties for non U.S. exploitation.
One of those is 50 miles south of Boise, Idaho. China has purchased that tract of land. And plans on building a “manufacturing” center there. It will be manned with their people and they will be permitted to bring their “extended” families. It will include, homes, businesses, schools, shopping centers, everything an autonomous community requires, including access to local natural resources previously off limits to domestic citizens.
The tracts of resources made off limits were really resource ‘lures’ China required in order to consummate this deal. Money in the bank, really. Untapped and ready for china.
Sound crazy? Its a done deal. And all of it is true. 100%. I’m afraid I don’t know the exact time line, but it has been in the news regionally. We are the “Africa” of the northern hemisphere. And we have the infrastructure to move their goods where quickly. To market or to ports.
Don’t believe it? Check it out.
First, for the lanthanide series existing as the precious metals of our day—but of ever so much more practical worth in utility—there is the curious coincidence that, just before the Pearl Harbor incident, didn’t FDR also, close California gold mining? But, is this a mere simple coincidence, or a coincidence in contrivance? Is China now to war with us?
Then more broadly, I submit that, in the nature of things, the root of the complex of problems to which “Ruler4You”‘s post alludes has most to do with any USA individual’s correct and productive apprehension of life, and with transmission of a culture of worth and strength and curiosity:
Being the keyboardist in a Black Church, within this last year I was occasioned to hear—from different preachers—two sermons in which was lamented, Black community failure to keep their young people out of jails, and interestingly enough, contrasting this with better times for black families, before the so-called civil-rights era.
And to this in the present context of response to the above post, lamenting the peculiar loss of land in Idaho—but may well be cogently related also, to USA loss of border control, and losses in USA academic achievement, etc., strange American declinations, all—I would add my testimony concerning the dominate culture that, outside the ethnic minorities, the wishes and intents for status quo is not much better—if at all. And in that way, I can’t tell you how many white guys whom I’ve heard talk about how they are going to retire with a quarter mil., with bigger houses, more cars, longer vacations, fatter retirements, but to my ear, all of which intones in death knells for what of the USA which had been held in admiration as the product and hope of a struggling world; for as has been said: “All those mere things do the heathen seek after.”.
For sustenance of a great nation, the minds of many individuals of its people being fixated upon mere things, will not suffice—have just too Americans done “gone heathen”?
And as fitting into a larger picture, somewhat like the days of Shamgar in the time of the Judges of Israel, when the people were forbidden weapons, but for being self-debilitating, our condition now much worse, even to the extent of inability to mine our own metals, . . . and now, as most signal, the zombie Occupiers intending to use their time indoors during this cold season to plan more effective attacks on our economy—and, the economic system upon which their lives also do depend—I wonder that, our Society doesn’t undergo some sort of dramatic organic re-organization, though despite all of the debate, not upon any sort of international conspiracy—for, in most instances and times, in various ways, if every nation is not against every other nation, plainly, not always is each in support of the other, for then where were the necessary competition as essential to progress in evolving standards of decency—but rather, of a simple kind of spontaneous combustion, and yes, very much as though, “We have met the enemy, . . . and the enemy is us.”, . . .
This is tied to agenda 21 and the regulations its spawned, if memory serves me correctly?
This feels like one of those elephant in the room issues that deserves more attention.
Absolutely correct article. When I lived in China back in the early 1980s, I learned from a Japanese language teacher colleague of mine that the Chinese were calling in Japanese corporations to exploit their rare earth metals because the Chinese did not yet have the technology for doing so. Now the Chinese have had 30 years to develop their own technology to extract and use these rare earth metals and they are going all over the world, as you point out, to extract and process them. In the meantime, as you also correctly point out, extreme environmentalists are keep both Americans and Canadians from exploring for and exploiting these rare earth metals in North America.
Every one of our resources are being taken off the market by either (1) EPA issuing excessive regulations, (2) excessive labor regulations, taxes and mandates, or (3) Wilderness and National Parks. I heard that we probably have rare earth minerals in the Grand Canyon. So why aren’t we exploiting them? Its been the national policy since the EPA, Endangered Species Act, and the Energy Dept. was created. Its all intentional by our politicans. In my mind, they’re traitors selling us out decade after decade. we’ve been sold to the Chinese and the Arab Muslims.
This is absurd … China thinks it controls the worlds largest piles of rare earth minerals; but the happy fact is: THEY DON’T. After the big tsunami in Japan; somehow, massive amounts of rare earth minerals were discovered on the ocean floor across the ocean all the way to Hawaii for goodness sake … screw China.
I remember about the time when the USA invaded Afghanistan in late 2001, there was briefly mentioned in the media about the various mineral deposits in the Afghan mountains. Apparently China took note.
Yeah! Talk about asleep at the switch? How’s (an estimated)94%? This is contracted, owned or under control by China. And the US is planning on a “green” economy? How? Everything leads to…yep! China.
Better yet, the US is betting on leaping forward into IT. How? All resources and rare earths flow through…yep! China.
China owns Long Beach’s naval facility! All ship building and dry dock repairs now are contracted with….yep! China.
Hummmm…one detects a pattern here. Maybe this is symptomatic of this administration’s, “I didn’t give any authorization for this!”
Let the fun begin. Finger pointing all over the place. God Bless America.
REPROCESS THE USED NUCLEAR FUEL! Used Nuclear Fuel contains enough fissile material to run our entire reactor fleet for at least seven years, and it also contains a significant amount of rare earth metals.
The land of North America has rare earth metals that the communists desire to control. America has not ‘forgotten this!’ America has been denied their wealth through ‘minimum wage,’ EPA ‘controls’, government regulations all thanks to the communist party of America under the guise of ‘democrats’! Just like the people of the oil rich countries. Kept poor and 3rd world. Americans must give up everything for freedom and throw off the communist party controlling her.
“Americans must give up everything for freedom…”
Somehow that resonates. That’ll be my next bumper sticker. Thanks!
You want the government to link aid to mineral deposit exploitation agreements. While that sounds good in theory, in function it is the first step to Corporatism.
The U.S. government does not run any mining operations itself. Expecting it to exert its authority to secure concessions for private business can never function on any level but that of crony capitalism.
You want an ideological special interest group, the environmental movement, to simply up and see reason?
I’m sure that sounded like a great idea to someone, but functionally it is a complete pipe dream. The sooner you stop thinking that will be possible the better.
Despite the assurance that prices will not be affected, any time the government is set up to buy a commodity for whatever reason it must always raise warning signs.
How much of a reserve?
How much should they have to pay?
Where can it be stored?
How much will it cost to store?
Who will be making money off the storage?
Anti-trust laws have indeed swung too far, and there is a driving need for just plain fewer regulations.
That being said, given the other proposals you make, I am extremely wary of just what this particular industrial consortium has in mind. Let’s make sure that enough regulations are removed to permit anyone to play in this game, and not just the current members.
You want to encourage students to get degrees that will help in getting jobs in your industry.
We’ve seen the results of trying to manipulate the education choices of past generations. They have not worked to date, and there is little to suggest they will not work in the future. If you want more people getting degrees in geology and what not, then tap into your corporate reserves and set up some scholarships. Along the way, offer better wage and benefit packages. If your industry wants people trained in these fields, your industry can pay for them.
Yes, the Strategic Minerals issue is a significant one, but let’s not jump in without considering all the options and collateral effects. Not doing so is what led to the collapse of those American mines in the first place, we don’t need to compound the error with an overreaction in the other direction.
Oops.
Forgot to include my name in that.
I’m not that anonymous.
“The only alternative is for U.S. mining corporations to move further down the supply chain through joint ventures and acquisitions so they realize their profits in the added value products… Securities laws that stifle such vertical integration should be rescinded in favor of rules that encourage this behavior.” – Michael Silver
So you think that by rescinding securities laws, the new monopolies will act in America’s best interests?
Twenty years ago in response to Japan’s banking dominance, we similarly rescinded securities laws on our banks. They proceeded to merge and blend banking with exotic investing, resulting US dominance by just a few that were too big to fail.
What could go wrong?
The problem is not that North America doesn’t have large deposits of rare earths, which are actually not that rare, but that China has kept the price so low that none can be mined economically. This was also done with other metals. Tungsten ore once sold for $1000/ton, but when the Chinese began selling it the price dropped to $50/ton and all the mines in North America closed. At the time it didn’t seem to make any sense that China would offer to sell a commodity for a price so much lower than what they could have gotten, but it now seems to have been part of a deliberate strategy to create a monopoly. The only choices we have would be either to create enormous stockpiles of strategic metals, or place a tariff on imported strategic metals being sold below a certain price to establish a price floor high enough to allow miners in North America to develop domestic resources economically.
In an ancient age, leading to WWII, the US went through another scramble for a rare metal which few knew existed: uranium. Our first bomb was made from African ore, used to color ceramic dishes.
Today, Advanced Rare Earth technologies, sources, applications, and future assessments, are one topic of many, studied by DoD experts and published in The Militarily Critical Technologies List (MCTL). It is the “bible”, required by law, for all government conduct bearing on our future military technological capabilities. It heavily defines US export controls and other regulations. For most technologies, there are dual use aspects, civilian and military, which interact. Break throughs in one area impact the other, in a volatile manner of urgent emails and assessments.
It is reasonable to assume that its hundreds of pages of open unclassified text are the favorite reading of our enemies. It is also reasonable to conclude that almost no American voter realizes that it exists, keeps us alive and free. Yet America has allowed bizarre situations to develop such as described by the author, a defacto foreign monopoly on vital materials. There are other agendas and priorities within our government. e.g. we regulated the only US rare earth mine out of existence. Was this wise?
The priorities, and view points would be a worthy topic of debate in our political campaign.