China’sRareEarthElementsIndustryWhatCanthe.PDFVIP

China’s Rare Earth Elements Industry: What Can the West Learn? By Cindy Hurst March 2010 Institute for the Analysis of Global Security (IAGS) The Institute for the Analysis of Global Security is a Washington based non-profit think tank dedicated to research and public debate on issues related to energy security. IAGS seeks to promote public awareness to the strong impact energy has on the world economy and security and to the myriad of technological and policy solutions that could help nations strengthen their energy security. WWW.IAGS.ORG Cindy Hurst is an analyst for the U.S. Army’s Foreign Military Studies Office, Fort Leavenworth, KS. The views expressed in this report are those of the author and do not necessarily repres- ent the official policy or position of the Department of the Army, Department of Defense, or the U.S. Government. 2 Introduction China controls approximately 97 percent of the worlds rare earth element market. These elements, which are not widely known because they are so low on the production chain, are critical to hundreds of high tech applications, many of which define our modern way of life. Without rare earth elements, much of the worlds modern technology would be vastly different and many applications would not be possible. For one thing, we would not have the advantage of smaller sized technology, such as the cell phone and laptop computer, without the use of rare earth elements. Rare earth elements are also essential for the defense industry and are found in cruise missiles, precision guided munitions, radar systems and reactive armor. They are also key to the emergence of green technology such as the new generation of wind powered turbines and plug-in hybrid vehicles, as well as to oil refineries, where they act