How to Play the Scramble for Rare Earths

Rare earths have gotten a lot of attention lately. Deservedly so, as you’ll see. This creates some opportunity for nimble speculators. Let’s take a look…

Last month, China cut its shipments of rare earth exports to Japan. China and Japan have a maritime spat going on and this ban is probably fallout from that. In any event, the ban alarmed Japanese manufacturers who depend on China for rare earths.

The term “rare earths” refers to a group of obscure minerals, such as cerium, rhodium and neodymium. They are critical to a host of cutting-edge technologies. We use them in everything from hybrid cars to low-energy light bulbs. They are also used in all kinds of electronics, from cell phones to laptops. You’ll also find rare earths in batteries, polished glass, exhaust systems and more.

Japan makes all these things. In fact, it is the world’s largest consumer of rare earths. China is the world’s largest producer of rare earths, with 95% of the market. So you can see this is a match up of heavyweights. (more)