Rare earths - rare stupidityIn 1992, Deng Xiaoping announced China's policy on rare earths. 2 decades for the West to set up its own mines for rare earths.
How did the West react to these memorable words from Deng Xiaoping in 1992? Not at all, how was a Western politician supposed to know what rare earths are? There are deposits of rare earths all over the world, but almost all the mines are in China. Let the Chinese work cheaply was the motto of the West. But suddenly they want to pay a little more for rare earths. Great excitement in the West. The West thinks China has a duty to plunder the country and sell everything as cheaply as possible. Or is the USA perhaps complaining to Saudi Arabia that oil should be sold for US$ 20 a barrel?
There used to be US$ 20 of neodymium in a wheel hub motor for an electric scooter. Does anyone in the rich, highly indebted West think about dismantling a wheel hub motor to extract neodymium for US$ 20? The price of neodymium has risen. Today, the same amount of neodymium is worth US$ 120. That is more of a motivation for recycling activities in a notoriously throwaway society. But neodymium for magnets in highly efficient electric motors can be used again and again. In 100 years, in 1000 years, in a million years. You only have to buy it once and you can use it again and again. Seen in this light, today's price of US$ 120 for the neodymium in a wheel hub motor is still a dumping price.
The WTO complaint by the USA, EU and Japan over rare earths is proof of rare stupidity. The world's future demand for rare earths can only be met by building new mines and recycling. China will see to that. Without stable higher prices for rare earths, there will be neither new mines outside China nor sufficient recycling. China is thus ensuring a secure future, while the West, as usual, is demonstrating absolute short-sightedness and rare earth stupidity. |
