China extracts over 97% of all rare earths. These minerals are at the core of U.S. defense, industrial, and consumer goods technologies. They are used in everything from mobile commucations and sensing devices to wind turbines.
China has increased its export controls to feed its domestic demand. This will directly impede production by manufacturers like Intel , and Siemens.
One U.S. company, Molycorp , is poised to soak up the coming worldwide rare earth demand shortage and supply the Siemens and Intels of the world.
How important are rare earths?
Rare earth elements, or REEs, include lanthanides, tantalum, niobium, yttrium, and scandium. Among the lanthanides, neodymium and samarium are used to make magnets for motors and turbines. Lanthanum is used in semiconductor chips for memory and processing devices. Tantalum is used to make steel even stronger and lighter in weight.
Defense and cyber-specific applications include jet fighter airframe and engines, guidance systems, space-based communications, and anti-missile defense.
Siemens makes energy products like transformers for electric transmission, turbines for wind power, and motors for electric transport systems. Each of these products requires rare earths. For example wind power turbines use neodymium rare earth magnets to increase efficiency and synchronization with grid connections especially at low wind speeds.
Intel uses rare earth lanthanum oxide in memory chips, transistors, and other information handling integrated circuits. WIthout rare earth layers in semiconductor devices, it would not be possible to achieve further miniaturization required in mobile telecommunications, computing, and information storage devices. Intel is a supplier of custom semiconductor devices to Siemens.
