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Beijing is drawing up plans to prohibit or restrict exports of rare earth metals that are produced only in China and play a vital role in cutting edge technology, from hybrid cars and catalytic converters, to superconductors, and precision-guided weapons, according to a reputable British newspaper.


A draft report by China's Ministry of Industry and Information Technology has called for a total ban on foreign shipments of terbium, dysprosium, yttrium, thulium, and lutetium. Other metals such as neodymium, europium, cerium and lanthanum will be restricted to a combined export quota of 35,000 tons a year, far below global needs, The Telegraph reported.


China mines over 95 percent of the world's rare earth minerals, mostly in Inner Mongolia. The move to hoard reserves is the clearest sign to date that the global struggle for diminishing resources is shifting into a new phase. Countries may find it hard to obtain key materials at any price.


Alistair Stephens, from Australia's rare metals group Arafura, told The Telegraph his contacts in China had been shown a copy of the draft -- "Rare Earths Industry Devlopment Plan 2009-2015." Any decision will be made by China's State Council.


"This isn't about the China holding the world to ransom. They are saying we need these resources to develop our own economy and achieve energy efficiency, so go find your own supplies," he said.


Stephens said China had put global competitors out of business in the early 1990s by flooding the market, leading to the closure of the biggest U.S. rare earth mine at Mountain Pass in California -- now being revived by Molycorp Minerals.


New technologies have since increased the value and strategic importance of these metals, but it will take years for fresh supply to come on stream from deposits in Australia, North America, and South Africa. The rare earth family are hard to find, and harder to extract.


Stephens told The Telegraph that Arafura's project in Western Australia produces terbium, which sells for $800,000 a ton. It is a key ingredient in low-energy lightbulbs. China needs all the terbium it produces as the country switches wholesale from tungsten bulbs to the latest low-wattage bulbs that cut power costs by 40 percent.


No replacement has been found for neodymium that enhances the power of magnets at high heat and is crucial for hard-disk drives, wind turbines, and the electric motors of hybrid cars. Each Toyota Prius uses 25 pounds of rare earth elements. Cerium and lanthanum are used in catalytic converters for diesel engines. Europium is used in lasers.
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Tags: Batteries, China, China, Emissions, Fuel Economy, Hybrid, Plug-ins and Electric, Arafura, Batteries, China, Electric Vehicle, Hybrid, Lithium Ion, Lithium-ion, Lynas Corp, Mountain Pass

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China to Begin Hoarding Precious Metals Used in Hybrids and All-Electric Vehicles was originally published by Green Car Advisor. Read the full story by clicking here.