Prices of rare earth elements have doubled over the last two weeks as China begins restrictive mining production and export practices. Since China supplies 95% of the 17 rare earth minerals used in everything from lasers, to plasma televisions to laptop batteries their policies will affect the global market adversely.
Dysprosium oxide is a rare earth mineral used in magnets, lasers, and nuclear reactors. The price for a kilogram of the material has gone up from $700 to nearly $ 1,470 a kg in just the last fortnight. This is indicative of how all 17 elements have seen a rise in price across the board.
Goldman Sachs said that the clamp down on rare earth mining and slashing of export quotas by China have led to more than mere price rise for the rare earth elements. Countries such as Japan which heavily deal with the rare earth elements in their major industries are running worried about where they will be able to access supplies.
Many countries have begun to revive old rare earth mines which had been mothballed as production costs were seen to be too high. Now with the boosted market prices for rare earth elements it may be economical for these old mines outside China to be restarted. The deficit is worrying as the rare earth elements are used in a multitude of high tech products which are as varied as wind turbines, hybrid cars, bulbs, and guided missiles.