As we transition to alternative energy sources, a new shortage looms in the background. Gas guzzling cars will be replaced by rare earth metal guzzling electric motors and batteries. The use of neodymium, terbium, dysprosium, and lanthanum will become much more wide spread. Rare earth metals will become the next ‘black gold’!
Today, almost all of the worldwide production of these rare earth metals comes from China and they have been able to force most manufacturers of advanced magnets and motors to build their factories in China, close to the source of these minerals.
As the demand for these metals increases, so will the prices. Alternate sources will become more and more feasible. Sources like Lynas Corporation and Arafura Resources in Australia, Great Western Minerals and Avalon in Canada, and Molycorp Minerals and Thorium in the United States.
To develop these sourrces, an enormous amount of capital will be required. Capital from state-owned Chinese companies or private capital. I suspect the tentacles of Goldman Sachs may be intwined in many of these investments and they will again be postured to make bundle.
Just some thoughts…
Bob
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