Thanks to one of IKN's most special readers (thanks dude, you know who you are) check out the link here to the April 14th 2010 report by US Department of Defense and its call on the need to secure Rare Earth Metals supplies. The 38 page document is necessary reading for anyone interested in the sector, but FWIW here are the six summary points as per the DoD:
SUMMARY
Objective 1: Current and Projected Availability
• While rare earth ore deposits are geographically diverse, current capabilities to process rare earth metals into finished materials are limited mostly to Chinese sources.
• The United States previously performed all stages of the rare earth material supply chain, but now most rare earth materials processing is performed in China, giving it a dominant position that could affect worldwide supply and prices.
• Based on industry estimates, rebuilding a U.S. rare earth supply chain may take up to 15 years and is dependent on several factors, including securing capital investments in processing infrastructure, developing new technologies, and acquiring patents, which are currently held by international companies.
Objective 2: Defense System Dependency
• DOD is in the early stages of assessing its dependency on rare earth materials and is planning to complete its study by the end of September 2010.
• Government and industry officials have identified a wide variety of defense systems and components that are dependent on rare earth materials for functionality and are provided by lower-tier subcontractors in the supply chain.
• Defense systems will likely continue to depend on rare earth materials, based on their life cycles and lack of effective substitutes.
• We found examples of components in defense systems that use Chinese sources for rare earth materials and are provided by lower tier subcontractors.
Objective 3: DOD Identified Risks and Actions Taken
• DOD has not yet identified national security risks or taken departmentwide action to address rare earth material dependency, but expects to consider these issues in its ongoing study expected to be completed by the end of September 2010.
• Some DOD components, other federal agencies, and companies are taking initial steps to limit their reliance on rare earth materials or expand the existing supplier base.
Or in other words, China has the USA's ass in a sling for the next 15 years minimum. Enjoy the rest of the report, dudettes and dudes.