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Chinese Monopoly On Rare Earth Metals Challenged
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October 4, 2010 3:04 p.m. EST
Topics: metal and mineral, politics, economy, business and finance, electronic commerce, international relations, diplomacy, business, non ferrous metal, United States
 
Lawrence Mijares - AHN News Contributor
United States (AHN) - China's worldwide monopoly over the production and exportation of rare earth metals, and its strict export quotas over their distribution, is being challenged by the United States and Japan. Both countries are looking for alternative ways to obtain these scarce resources that are indispensable in many modern and hi-tech electronics products.
 
 Today, China accounts for 95 percent of global production of rare earth metals and recently withheld shipments to Japan in a diplomatic incident stemming from a controversy over the ownership of a chain of islands between the two countries. While China later reverved itself, a Japanese trading firm source said customers are now looking elsewhere for supplies.
 
 In the late 1980s, the U.S. was the world’s number one producer of rare earth metals, a title that has now been eclipsed by China. This has impelled the Obama administration to recently call for a diversification of sources where one doesn’t have to rely on just one source, but ideally to several.
 
 “Rare earths are virtually indispensable in the modern world," Paul Strange, professor of physics at the University of Kent, told an interviewer in the magazine TechEye. "Rare earth materials include the strongest magnets known and they are found in every car and a huge number of electronic devices, particularly associated with information storage. On top of that they are very likely to have applications in new electronics, and in green technologies such as catalytic converters and rechargeable battery materials."
 
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