Implications of Competition for Rare Earth Elements (REE) in Africa

Abstract

Abstract : According to the Congressional Research Service, China possesses over ninety-seven percent of the industrial production capacity for rare earth elements (REEs), thus creating a global monopoly. Most of the global REE supply-chain is located within China's national territory, or under its influence through the purchase of mineral rights from other parts of the world, such as Africa. In 2010, China constrained the exports of REEs into the world market. It is feared that China will further limit exports of REEs as a tool to shape foreign policy, but the real reason may be to meet its own increasing needs. REEs are critical to production of many commonly used items like cell phones, computers, and military weapons technology. Production of REEs takes a significant amount of time to develop, usually in terms of decades. The only developed U.S. source of REEs is located at Mountain Pass, California and has been out of production since 2002, but is due to reopen in mid-2012. Should the U.S. remain dependent upon China for the majority of its REE supply, or do alternatives exist elsewhere like Africa.