{"id":8085,"date":"2013-07-28T13:54:59","date_gmt":"2013-07-28T17:54:59","guid":{"rendered":"http:\/\/www.pgm-blog.com\/?p=8085"},"modified":"2013-07-28T13:54:59","modified_gmt":"2013-07-28T17:54:59","slug":"why-investing-in-rare-earth-elements","status":"publish","type":"post","link":"https:\/\/www.pgmcapital.com\/nl\/why-investing-in-rare-earth-elements\/","title":{"rendered":"Why Investing In Rare Earth Elements?"},"content":{"rendered":"

\"Rare<\/a>\"Rare_Earth_Metals<\/a><\/p>\n

Dear\u00a0<\/span>PGM Capital<\/strong>\u00a0Blog readers,<\/span><\/p>\n

In this weekend’s blog edition, we want to elaborate on the increasing usage of
\nRare Earth Elements -REE’s- in our modern society and the best way to invest in them.<\/p>\n

What are Rare Earth Elements:<\/strong><\/span>
\nRare Earth Elements\u00a0(“REE’s”) or Rare Earth Metals\u00a0are a set of seventeen\u00a0chemical elements\u00a0in the\u00a0periodic table, especially the fifteen Lanthanides<\/strong><\/a> plus Scandium<\/strong><\/a> and Yttrium<\/strong><\/a>, which are considered “Rare Earth Elements”\u00a0since they tend to occur in the same\u00a0ore\u00a0deposits as the lanthanides and exhibit similar chemical properties.<\/p>\n

Despite their name, rare earth elements (with the exception of the radioactive promethium)\u00a0are\u00a0relatively plentiful\u00a0in the\u00a0Earth’s crust<\/a>, with\u00a0“Cerium”\u00a0being the 25th most abundant element.<\/p>\n

Rare Earth Elements are not found in the ground as independent elements. Rather, they are found in minerals which must be separated chemically in order to obtain them. The minerals containing REE’s are called\u00a0Rare Earth Minerals<\/a><\/strong>\u00a0REMs-.<\/p>\n

The Supply and Demand Picture:<\/strong><\/span>
\nThe supply of rare earths is dominated by China, which provides 97% of the world\u2019s production. However, China only has 48% of the world\u2019s known reserves of rare earths, according to the USGS Mineral Commodity Summaries 2011. Due to industry consolidation and stricter environmental regulations, China has imposed export quotas on rare earths. Effectively this creates two separate rare earth markets, an internal one for China and one for the Rest-of-World (ROW). The Chinese export quota amount therefore defines the majority of the ROW supply.<\/p>\n

In order to meet the forecasted global demand of approx. 175,000 metric-tons<\/a> (tonnes) by 2015, the Chinese supply will have to be increased to 130,000 tonnes per year, providing ROW supply to increase from approx. 10,000 tonnes in 2012 to more than 45,000 tonnes in 2015 as can be seen from below chart.<\/p>\n

\"REE_supply_demand\"<\/a><\/p>\n

\n

Applications:
\n<\/strong><\/span>The unique properties of REE’s have made them critical components in a range of green-tech and high-tech applications, as well as advanced defense systems and space-based communications systems.<\/p>\n

Below is a breakdown of each rare earth element and its common uses:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Element<\/strong><\/td>\nCommon Uses<\/strong><\/td>\n<\/tr>\n
Non-Lanthanides<\/em><\/span><\/td>\n<\/td>\n<\/tr>\n
Scandium<\/strong><\/td>\nAerospace components, mercury-vapor lamps<\/td>\n<\/tr>\n
Yttrium<\/strong><\/td>\nLasers, microwave filters, high-temperature superconductors<\/td>\n<\/tr>\n
Light Rare Earth Elements (LREE)<\/em><\/span><\/td>\n<\/td>\n<\/tr>\n
Lanthanum<\/strong><\/td>\nCamera lenses, catalytic cracking catalyst for refining oil, high refractive index glass, battery electrodes<\/td>\n<\/tr>\n
Cerium<\/strong><\/td>\nGlass and ceramics, polishing powder, chemical oxidizing agent<\/td>\n<\/tr>\n
Praseodymium<\/strong><\/td>\nRare earth magnets, lasers, carbon arc lighting<\/td>\n<\/tr>\n
Neodymium<\/strong><\/td>\nRare earth magnets, lasers<\/td>\n<\/tr>\n
Promethium<\/strong><\/td>\nNuclear batteries<\/td>\n<\/tr>\n
Samarium<\/strong><\/td>\nRare earth magnets, lasers, masers<\/td>\n<\/tr>\n
Heavy Rare Earth Elements (HREE)<\/em><\/span><\/td>\n<\/td>\n<\/tr>\n
Europium<\/strong><\/td>\nLasers, mercury vapor lamps<\/td>\n<\/tr>\n
Gadolinium<\/strong><\/td>\nRare earth magnets, lasers, x-ray tubes, MRI, computer memory<\/td>\n<\/tr>\n
Terbium<\/strong><\/td>\nLasers, fluorescent lamps<\/td>\n<\/tr>\n
Dysprosium<\/strong><\/td>\nRare earth magnets, lasers<\/td>\n<\/tr>\n
Holmium<\/strong><\/td>\nLasers<\/td>\n<\/tr>\n
Erbium<\/strong><\/td>\nLasers, vanadium steel<\/td>\n<\/tr>\n
Thulium<\/strong><\/td>\nx-ray machines<\/td>\n<\/tr>\n
Ytterbium<\/strong><\/td>\nLasers<\/td>\n<\/tr>\n
Lutetium<\/strong><\/td>\nPET scanners, high refractive glass<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

As you can see, rare earths have many uses, and find their way also into the following everyday technologies and applications:<\/p>\n

Green-tech applications include:<\/p>\n

\n
\n