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Posted on Sustainabilitank.info on November 20th, 2009
by Pincas Jawetz (pj@sustainabilitank.info)

From the Energy & Capital website information of value:

On January 1, 2010, for the first time in history,
Greenland’s $273 billion Rare Earth resource will become private property.

And one company will control it all.

“Dear Reader” writes, Keith Kohl, the editor of that investment newsletter:

“On New Year’s Day, the Kingdom of Denmark will relinquish its sovereign hold over Greenland’s mineral rights.

At stake: a 500-square-mile hunk of Arctic bedrock…

To most, this ice-encrusted landscape is the definition of barren and uninviting.

The only vegetation is moss, and the nearest town is little more than a collection of tents, over 100 miles away.

But to the world’s biggest automakers, as well as to the global weapons industry, this uninhabitable hunk of rock is the most precious 500 square miles on the planet.

?You see, locked within this property is a unique group of minerals, concentrated unlike any other deposit on earth.

?They’re called Rare Earth Elements, or REEs for short. And this prized piece of land contains more than $273 billion worth.

Without them, some of our most important modern technologies could never exist.

In fact, they’re so crucial to modern circuitry that industry insiders came up with a nickname for REEs: ‘Technology metals.’

From hybrid car batteries… to wind turbine motors… to missile guidance systems…

Metals such as cerium, promethium, europium and many of the remaining 29 Rare Earth Elements are essential to all modern electronic devices that use:

  • rechargeable batteries
  • electric motors
  • photo optics
  • solar cells
  • strong magnets

And as the Kingdom of Denmark signs away its rights to these riches, the world’s biggest concentration of REEs will fall into the hands of a single company.

“Literally overnight, this company – which is trading for just under 50 cents right now – will come to control 1/4 of the global supply… for the next half century.

Now before I tell you all about this company — and its imminent run-up — let me explain why these minerals are so critical for Big Auto and the defense industry…

… And why they’re the Western world’s last line of defense against a huge and determined rival.

You see, for the last 15 years, the world has gotten its REEs from one main source.”

And it hasn’t exactly been a friendly one.” is written in that newsletter – then elaborated:

China’s Mission:
A Rare Earth Element Monopoly

“The Mideast had oil, but China has Rare Earth Elements. As OPEC did with oil… China is about to tighten its hammerlock on the market for some of the world’s most valuable metals.” – NY Times

The Chinese knew how important Rare Earths would be years ago.

In fact, as far back as 1992, Communist Party Leader Deng Xiaoping said: “There is oil in the Middle East. There is rare earth in China.”

And since then, they have been doing everything in their power to realize this destiny…

On April 27th of this year, they penned a deal with a major foreign supplier to widen their control of this market to a historic level.

Today, thanks to that deal, Communist China produces 96.8% of the total global supply of these vital elements.

656-chart
Obviously, the newsletter does not mention Bolivia, Mongolia, and not even further resources in the US – but nevertheless – the basic information is of great interest.

Here’s what I mean he continues:

Every Toyota Prius, every Honda Civic Hybrid, and just about every other battery-powered car on the market requires between 23 and 25 pounds of Rare Earths to run.

For Japan, this is a very dangerous scenario:

“Japan, which imports nearly 100% of its rare earths from China, sees the group of elements as a probable battleground” – Wall Street Journal.

And while cleantech is still new, it’s already changing the face of the REE market.

Because as vital as Rare Earth components are, they make up only a tiny fraction of the overall mass of any modern electronic device.

That is why up until 2008, the entire global market for REEs was just $2 billion.

But with the emergence of cleantech, this is all rapidly changing.

quote-1

In fact, less than a year from now, growth in the battery-powered car industry will increase global REE consumption between 90% and 166% from 2008 levels.

Now here’s why there is no end in sight for this trend: In high-capacity batteries, Rare Earths represent a significant percentage of the weight.

And right now, these batteries are being produced at an unprecedented rate.

Just look at the forecast for hybrid/electric sales for the next six years:

scenario-for-hybrid-vehicles

I’m talking about over 10 million battery-powered cars globally by the year 2015. (That’s a 500% increase over what exists today.)

And remember, it’s not just hybrids.

It’s any technology in which electric motors, photovoltiac cells and portable rechargeable batteries are essential… which means that on top of using REEs in the solar panels and in the the wind turbines themselves, every cleantech power generator will also rely on REE-filled batteries to store the energy.

And because batteries are so much hungrier for REEs more than any other single product, the demand for REEs will outpace the growth of the consumer electronics market alone — by as much as four-fold.

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One Response to “Lithium for Electricity Storage Batteries to be found in Bolivia, Mongolia, China, and now in Greenland.”

  1. JD Says:

    What is the name of the one company that will control the REEs in Greenland? Is it Crew Development Company? Any insight would be greatly appreciated.

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