Comments on: The Final Chinese Rare-Earth Export-Quota Allocations For 2012

By: Alessandro

Alessandro — Mon, 03 Dec 2012 10:20:49 +0000

Dear Gareth,
I am a student that works on FDI in rare earths economy. I would know if there is a link between chinese ban on rare earths exports and the development of hight tech batteries and hybrid cars.
Thanks in advance
Alex

By: Gareth Hatch

Gareth Hatch — Fri, 07 Sep 2012 04:52:35 +0000

@GH: I won’t be at that meeting.

@henk mol: at present there really aren’t any supply issues with Nd-Fe-B magnets (costs aside). From what I hear, most factories in China are running at 30-40% capacity at most and could easily ramp up if required. I am also not aware of any real shortages of Dy, despite the usual mainstream hype on the subject.

By: henk mol

henk mol — Fri, 24 Aug 2012 06:39:20 +0000

Hello Gareth,
Thank you for keeping this update going. For me as a representative of a mechatronic component maker, the question is not the raw material export, but more “What magnet volumes are actually available to make efficient internal permanent magnet motors and with what delay time” for the purpose of hybrid and electrical cars. The quota deal with RE oxides, so how about finished products (that is magnet metal mixtures, raw magnets, and finished magnets) or even complete motors? Is there any statistics being kept of these export products? Will there be significant delay in magnet production requiring >6% Dy if there are shortages in especially that kind of raw material? Will this impact the amounts of IPM motors made before end of 2015, when the “super credits” for electric cars of the EU emission regulation will pass out?
It does make a huge difference whether to make parts for IPM motors or whether we will be stuck to induction motors, wound rotor motors or variable reluctance motors in the nex gen hybrid cars.
Regards, Henk Mol

By: G H

G H — Thu, 23 Aug 2012 15:41:00 +0000

Gareth,

Thanks as always for reliable information which is almost impossible for the retail investor to obtain.

I imagine abolishing the quotas will be a very hot topic in informal discussions at the Sept 12-14 conference in Guangzhou, as well in as Steve Mackowski’s session. After the conference, an update posted here would be deeply appreciated!

– Gary H