Rare Earth Minerals Power the Green Economy and Embolden China's Bid for Dominance

China's control of rare earth minerals positions the nation as the green OPEC of the future. China controls the vast majority of the world's supply of rare earth minerals which are vital to a wide range of new technologies.

Rare earth elements or rare earth metals are a collection of seventeen chemical elements in the periodic table, specifically the fifteen lanthanoids plus scandium and yttrium. However, because of their geochemical properties rare earth elements are typically dispersed and not often found in concentrated and economically exploitable forms known as rare earth minerals (REMs).

All other countries producing rare earth minerals are dwarfed by the scale of Chinese production. China now produces approximately 97% of the world's rare earth supply, mostly in Inner Mongolia. All of the world's heavy rare earths (such as dysprosium) come from Chinese rare earth sources such as the polymetallic Bayan Obo deposit.

REMs are a crucial part of many modern technologies, including clean technologies like hybrid car batteries and wind turbine motors. REMs are essential to modern electronic devices, rechargeable batteries, electric motors, photo optics, solar cells and strong magnets.

China has understood the strategic and technological importance of REMs for a long time. Almost 20 years ago, Communist Party Leader Deng Xiaoping said in a radio broadcast from China National Radio, "There is oil in the Middle East. There is rare earth in China."

The surging importance of cleantech is driving demand for REMs. The current generation of hybrid cars alone each require between 23 and 25 pounds of REMs. By 2015, there are likely to be over 10 million battery-powered cars on the road around the world. This translates to 250 million pounds of REMs for hybrid and fully electric vehicles in the next few years.

China is driving the green economy forward, and the green economy is driving the demand for REMs. With the vast majority the world's reserves of REMs under Chinese control, this puts China in the enviable position of controlling some of the earth's most important natural resources.

© 2011, Richard Matthews. All rights reserved.

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The 2010 World Energy Technologies Summit

On Thursday March 18, the 2010 World Energy Technology Summit will convene in New York city. The summit will explore technologies that can help save the planet and shape the future. Some of the world's brightest minds and innovators in energy-tech will lead a daylong summit on game-changing green technologies. Core subjects will include power, food, heat and light. TIME Magazine and the World Technology Network are partners in this daylong gathering of influential energy technology experts and stakeholders. The Summit will bring together leading experts – technologists, scientists, business leaders, policy makers, entrepreneurs, investors, government and NGO representatives, and more – each working in or deeply tied to the fields of energy, alternative energy and environmental technologies. Throughout a day of discussions, panels and demonstrations, the Summit will explore the role and influence of emerging energy technologies on climate change, business, infrastructure and the environment. Speakers include Peter Goldmark, Program Director, Climate and Air, Environmental Defense Fund, and Mindy S. Lubber, President of CERES. Guided by the theme, REALITY CHECK: Technologies Putting us on the Path to Sustainability, programming will explore long and short term technologies and strategies that can re-shape our lives, our businesses, our policies, our planet and our future.

Green Investing Part 1: Objective Research and Analysis

Despite wild fluctuations in the stock market, Green is becoming a major economic power. However to be a successful investor in this area you must remain objective. Emotions are often harmful to the value of an investor's portfolio, this is particularly true in Green investing. For many investing in Green businesses, decisions are based on their hopes rather than on objective research and analysis. A successful (Green) approach to investing implies more than the ability to recognize a good concept or anticipate a trend, to be a bottom line investor you must also research and analyze a company's finances and business practices. Examine the management, the uniqueness and positioning of the product, the industry, and the competition. Consider also the future growth prospects for the company and the industry. Above all, effective analysis must review the plan for integrating green technologies or concepts into sustainable profitability.

Investors may also want to consider Green Chips, (exchange traded funds or "baskets" of green energy companies). Although sustainable energy gets a lot of attention, there are many smaller opportunities that offer favorable rates of return. Assess risk by anticipating obstacles, and the individual set of pros and cons that come with each investment. To help minimize your risk, diversify your portfolio.

When eco-convictions hold sway over analysis, invest only what you can afford to lose. When analyzing a Green investment, research the details and remain objective.

Next: Green Investing Part 2: The Green Wave