Rare earths market must be kept open

By Patrick Burnson, Executive Editor
September 22, 2011 - LM Editorial

Concern that the United States will fail to maintain an adequate supply of the minerals needed to manufacture our most advanced products is gaining traction in Washington.

Congressman Don Manzullo (R-IL), Chairman of the House Foreign Affairs Subcommittee on Asia & the Pacific, held a hearing to highlight the fact that China controls 97 percent of the rare earths market and has been limiting exports and skyrocketing costs of the minerals to the detriment of manufacturers in the U.S. and other countries.

As logistics management sources have been noting, rare earths are vital in a variety of advanced manufactured goods, such as cell phones, fluorescent lights, hybrid engines, airplanes, wind turbines, and defense guidance systems. 

China’s actions to temporarily ban exports of rare earths a year ago following a territorial dispute with Japan caused huge price spikes for certain rare earths, particularly cerium, neodymium, and dysprosium.  Currently, the prices for these elements are at astronomical levels. As a result, U.S. manufacturers can no longer expect a steady supply of these elements, and the pricing uncertainty threatens tens of thousands of American jobs. 

According to Manzullo, the U.S. Department of Energy is conducting cutting edge research into rare earth alternatives, but a more comprehensive effort is needed.

“Congress, the Administration, and our manufacturers need to come together to formulate a comprehensive strategy to end China’s monopoly on rare earths, from challenging China’s trade actions to encouraging more American production of rare earths. We must end our reliance on China for the building blocks of advanced U.S. manufacturing. American jobs and our national security depend on it.”



About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

The high-volume warehouse or distribution center that supports B2B, Omni-channel activities, direct-to-consumer shipments, and the Internet of Things all require a flexible and scalable supply chain in order to function at optimal capacity. The problem is that most of today's supply chains are made up of fragmented silos of information that compromise their ability to compete, be responsive to customer demands or seize new business opportunities.

As customers' demands constantly evolve, transportation and logistics (T&L) operations are being put under growing pressure to offer more efficient delivery services, while not compromising on customer service. Using findings from a research survey conducted among transport and logistics managers around the world, this report explores how a combination of mobile technology implementations for mobile workers, and process re-engineering efforts can elevate operations to the next level.

It's a fact - most best-of-breed WMS providers force you to pay every time you require a system change. Uncover five more dirty secrets many warehouse management systems providers don't want you to know. Download the white paper 5 Dirty Secrets of Warehouse Management Systems to discover these hidden truths and gain valuable information on considerations for evaluating WMS vendors.

Not Sure? The Whitepaper "Stay or Switch" Provides the Research Necessary for You to See How Well Your Provider Stacks Up!

Too many companies invest in ERP systems but do not achieve the business benefits they anticipated. Sometimes, the ERP solution never fits the way your people and processes work.

Article Topics

Blogs · Global Logistics · Global · Trade · All topics

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. Contact Patrick Burnson

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA