Unless the U.S. diversifies its sources for rare earth minerals, manufacturers of clean energy products are at risk of major supply disruptions, according to a new report released by the Department of Energy.
China currently has a monopoly on rare earth minerals, with only Molycorp (NYSE: MCP) gearing up to increase production at a mine in California.
The Critical Materials Strategy released by DOE examines the role of rare earth metals and other materials in the clean energy economy. The report focuses on materials used in four technologies--wind turbines, electric vehicles, solar cells and energy-efficient lighting.
The strategy analyzes fourteen elements, identifying five rare earth metals (dysprosium, neodymium, terbium, europium and yttrium) as well as indium as most critical based on importance to clean energy technologies and supply risk.
It also explores eight policy and program areas that could help reduce vulnerabilities and address critical material needs, including research and development, information-gathering, permitting for domestic production, financial assistance for domestic production and processing, stockpiling, recycling, education and diplomacy.
DOE said it plans to work closely with its national labs, other federal agencies, Congress and international partners to develop its first integrated research agenda on critical materials and strengthen its information-gathering capacity to proactively address supply and demand for products that contain these metals.
An updated report will be issued by the end of 2011. The current report can be read at the link below (pdf).
