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Rare Earth- A Thought on Being Green and the Supply and Subsequent Demand on Earth Elements

Travis's picture




I've often scoffed at the people who drive hybrids and think they're doing everyone a big favor.  After the much publicised "Cash for Clunkers" effort, to get American drivers to "go green," I find it interesting the reasoning.  Spend an extra $6,000 to $10,000 (on average compared to a similar non-hybrid vehicle) and get marginally better fuel milage, which, would take you years and years to ever fully realize in cost savings. 

But another facet that has not been talked about much is the global impact hybrids and other eco-friendly battery operated devices have on the planet.  This time, from a basic elements perspective.

Today, Steve Gorman from Reuters writes "As hybrid cars gobble rare metals, shortage looms" a story how materials used in the production of car batteries is quietly outstripping supply.

Rare earth metals "covering 15 entries on the periodic table of elements, is expected to exceed supply by some 40,000 tonnes annually in several years unless major new production sources are developed."  Gorman hints that once promising new source of "rare earths" is slated to reopen in California by 2012. 

One rare earth depicted is neodymium- a key component in the production of magnets for motors and generators.  Others mentioned are terbium and dysprosium- also used in magnets. 

Of the biggest offenders to the looming shortages- the Toyota Prius.  The article sites- "Toyota plans to sell 100,000 Prius cars in the United States alone for 2009, and 180,000 next year..."   Toyota forcasts sales of hybrids totalling 1,000,000 units per year starting just next year in 2010!

Another offender of the rare earth shortages- China- as their industries begin to consume most of their own rare earth production.  Leaving Toyota among others looking for viable reserves.

While Toyota is quiet of confirming or denying anything, other than buying a Prius is "green," they and others are looking to Canada and Vietnam for possible rare earth possibilities. 

As for going "green" and driving a hybrid- if it's not one natural resource you're burning through- it's invariably another. 

Maybe in 30 or so years- they'll have "Rebates for Rare Earths."  Don't laugh- it could happen. 

 




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Mon, 08/31/2009 - 13:23 | Link to Comment Joe Sixpack
Joe Sixpack's picture

"Maybe in 30 or so years- they'll have "Rebates for Rare Earths."  Don't laugh- it could happen."

 

Cash for Lanthanides

Sun, 01/31/2010 - 20:06 | Link to Comment Anonymous
Mon, 08/31/2009 - 13:29 | Link to Comment Anonymous
Tue, 12/29/2009 - 21:55 | Link to Comment Anonymous
Mon, 08/31/2009 - 13:30 | Link to Comment DaddyWarbucks
DaddyWarbucks's picture

Even more egregious than the magnetic materials are the battery materials. Ever noticed how ALL of your batteries are considered toxic waste? Let's see, our choices are good old fashioned lead with an acid chaser, alkalines, metal-hydrides, various lithium compounds and who knows what will be the next wonder material.

The second thing to note about ALL batteries is the limited lifetime, and it is usually shorter than the advertised lifetime for various technical and sales reasons. Rechargeable batteries can only be charged and discharged a limited number of times and then it's off to a cozy retirement of slowly quietly poisoning some location.

Those who believe that batteries are "green" are sorely misled.

 

Mon, 08/31/2009 - 13:58 | Link to Comment Joe Sixpack
Joe Sixpack's picture

Lithium supply is also an issue. There's lots of it in Bolivia (a white powder?), but other sources need to be developed.

Tue, 09/01/2009 - 01:06 | Link to Comment Tipo anónimo
Tipo anónimo's picture

So having been in Bolivia several times, that means somewhere between "none available" and "neener neener, we finally have something we'll only sell to Iranians!"

Mon, 08/31/2009 - 14:43 | Link to Comment Anonymous
Mon, 08/31/2009 - 18:12 | Link to Comment Dantzler
Dantzler's picture

In Seattle, alkalines can go in the normal rubbish, but ALL other batteries are considered hazardous waste.

Tue, 12/29/2009 - 22:10 | Link to Comment Anonymous
Mon, 08/31/2009 - 13:35 | Link to Comment SlimeyLimey
SlimeyLimey's picture

The economic case for hybrids is an artifact of the tax structure on diesel vs. gasoline. They make no sense in other parts of the world.

The air quality case is about cities exporting their pollution to the suburbs and power plants.

The carbon case: as long as electricity is produced primarily from coal, plugins will have a bigger carbon footprint than either gas or diesel.

 

Mon, 08/31/2009 - 13:37 | Link to Comment Anonymous
Mon, 09/07/2009 - 16:49 | Link to Comment Bob Dobbs
Bob Dobbs's picture

Question one: not really, no.  I suppose the batteries are given an intial charge, but maybe that just happens as the auto is driven around.

 

The answer to question two is "maybe."  Central power stations are usually much more efficient than small generators.  It's how the power is distributed and used that will be the trick.

 

As the author of the thread stated, the real problem will be the metals used.  For example, Li is not distributed equally in the earths crust

Mon, 08/31/2009 - 13:49 | Link to Comment Sancho Ponzi
Sancho Ponzi's picture

Guess who has an interest in the largest rare earth mine in the US

"Chevron Mining Inc. today announced that it has entered into an agreement to sell its Mountain Pass rare earth mining operations to Rare Earth Acquisitions LLC. The transaction is expected to close in late September, 2008.

REA is a special purpose company owned by Resource Capital Funds, Pegasus Partners IV, LP, The Goldman Sachs Group, Inc., Traxys North America LLC and Carint Group LLC. Included in the acquisition is the Molycorp name and upon closing, the company will be renamed Molycorp Minerals LLC"

Commodity manipulation here we come...

Mon, 08/31/2009 - 13:55 | Link to Comment Anonymous
Mon, 08/31/2009 - 13:54 | Link to Comment Silver Bullet
Silver Bullet's picture

We're screwed regardless. Let's burn all the oil and coal, live it up while we can.

Mon, 08/31/2009 - 14:42 | Link to Comment Tax Man
Tax Man's picture

You will not be able to burn all the coal. There is to much of it.

Mon, 08/31/2009 - 13:55 | Link to Comment Anonymous
Mon, 08/31/2009 - 13:55 | Link to Comment Anonymous
Mon, 08/31/2009 - 13:57 | Link to Comment Sqworl
Sqworl's picture

I have always felt that this was a major payday for Gore.  The whole thing stinks and cap n trade is the new cdo's.  Now we will trade and tax the air your breath that will kill you.

Mon, 08/31/2009 - 14:00 | Link to Comment crzyhun
crzyhun's picture

BRAVO!!

Mon, 08/31/2009 - 14:01 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

As long as our civilization consumes more than we return to the earth, there is no "green" to be had. The whole idea of "sustainable" is misleading because the entire consumption process (extraction, transportation, production, use, recycling) is rarely accurately measured.

Mon, 08/31/2009 - 14:17 | Link to Comment Manfred
Manfred's picture

In terms of the notion that "Cash for Clunkers" (was an) effort, to get American drivers to "go green," - C4C was the administrations' first attempt at marketing automobiles e.g. employee pricing.  Pretty soon we'll see the White House all decked out with those colorful flags and streamers that adorn used car lots and maybe even a giant Gorilla proclaiming a monster sale.

Mon, 08/31/2009 - 14:02 | Link to Comment Marley
Marley's picture

Yeah Slimmy and Anon;

Finally someone is thinking.  Exportation of pollution is the greatest offense of all.  Unless you're plugging in to your roof top panels to charge your spare battery, you're just causing pollution elsewhere to feel good locally.  Anon, power plants operate at anywhere from <30 and up to 40% efficiency.  The car, depends on gas mileage, anywhere from 18 to 20 percent, that's before the mechanical losses in your drive train, tires, and car aerodynamics.  Looks like electric is great, right?  Now assuming mechanical and aerodynamics being the same, remember, transmission losses for powerlines and transformers.  Conversion factors, from electricity to your batteries and back again.  What do all the losses add up too?  That's subject to debate, and believe me there are a lot of master debaters out there.  Good luck and thanks for thinking.

Mon, 08/31/2009 - 23:00 | Link to Comment defender
defender's picture

Those numbers sound remarkably low to me, especially the power plants.  Do you have a link for that? 

Tue, 09/01/2009 - 00:34 | Link to Comment Marley
Marley's picture

The simplest site is Wiki, I know there is a lot of bunk on wiki but this article isn't too far off.

http://en.wikipedia.org/wiki/Fossil_fuel_power_plant

The easiest way for me to explain, you can look for yourself, is to look up the energy conversion factor for btu to watt, approximately 0.29 watt-hour per btu.  You need a thousand watts to make a kilowatt-hour. Power plant efficiency is measured in "heat rate" which is a measure of how much heat input provides a given amount of electrical power.  In this case Btu's per kilowatt-hour.  The best units, and most expense, are in the 8,500 btu/kwh range.  So, just do the math and you come up with 40%.  The vast majority of plants don't operate in this range.

Tue, 09/01/2009 - 15:39 | Link to Comment Anonymous
Mon, 09/07/2009 - 16:51 | Link to Comment Bob Dobbs
Bob Dobbs's picture

Just reference the second law of thermodynamics.  That's not going to change.

Mon, 08/31/2009 - 14:27 | Link to Comment Sancho Ponzi
Sancho Ponzi's picture

Rather than flushing the stimulus money down the toilet, why don't we build more of these?

http://www.guardian.co.uk/environment/2008/nov/09/miniature-nuclear-reactors-los-alamos

http://www.hyperionpowergeneration.com/

Let's do the math

Each reactor powers 20k homes at $30 million a pop, and there are 120 million households in the US.

So we could power every house in the US for a mere $180 billion, or approximately 1/4 of the stimulus. Nah, that makes too much sense.

 

Mon, 08/31/2009 - 14:40 | Link to Comment Cheddar Bob
Cheddar Bob's picture

second that

Mon, 08/31/2009 - 15:55 | Link to Comment Anonymous
Mon, 08/31/2009 - 23:24 | Link to Comment defender
defender's picture

I personally like the thorium reactors.  You turn on a alpha particle emitter, aka MASER, and there is a nuclear reaction.  You turn off the MASER and the reaction stops in a few minutes.  It is also more abundant than uranium, and contained in rare earth minerals.  Just consider it a two for one special.  Wikipedia has a nice long winded writeup on it.

Tue, 12/29/2009 - 21:48 | Link to Comment Anonymous
Mon, 08/31/2009 - 14:24 | Link to Comment Anonymous
Mon, 08/31/2009 - 14:25 | Link to Comment Anonymous
Mon, 08/31/2009 - 14:25 | Link to Comment passive_lurker
passive_lurker's picture

It will be the height of irony when the greenies, lefties, and social justice types lock themselves to the bulldozers at the rare earth metals mining pits, claiming the harm of such things to the indigenous cultures and the environment...

Mon, 08/31/2009 - 14:27 | Link to Comment Anonymous
Mon, 08/31/2009 - 14:31 | Link to Comment Thoreau
Thoreau's picture

Anyway you slice it, we're gonna need cleaner solutions for energy & transportation. There's a lot of exciting innovations being developed; which I'm sure most on these boards are savvy too. It irks the hell outta me that we're pissing-away possible trillions to further entrench the established oligarchy, when a fraction of that amount pumped into R&D could yield untold fruits & solutions - environmental, economic, political. Talk about wasted resources.

Mon, 08/31/2009 - 14:39 | Link to Comment FreddyInBangkok
FreddyInBangkok's picture

we live to consume, burn & waste.

your alternative is ... what...?

 

Mon, 08/31/2009 - 14:39 | Link to Comment zeropointfield (not verified)
Mon, 08/31/2009 - 18:58 | Link to Comment Anonymous
Tue, 09/01/2009 - 07:21 | Link to Comment zeropointfield (not verified)
Tue, 09/01/2009 - 15:47 | Link to Comment Anonymous
Mon, 08/31/2009 - 23:32 | Link to Comment defender
defender's picture

Unfortunately fuel cells require platinum, which is also a scarce resource.

Tue, 09/01/2009 - 07:28 | Link to Comment zeropointfield (not verified)
Mon, 08/31/2009 - 14:52 | Link to Comment Zippyin Annapolis
Zippyin Annapolis's picture

No free lunch- well done.

Mon, 08/31/2009 - 14:56 | Link to Comment Anonymous
Mon, 08/31/2009 - 15:17 | Link to Comment Anonymous
Mon, 08/31/2009 - 15:50 | Link to Comment Anonymous
Mon, 08/31/2009 - 17:14 | Link to Comment Anonymous
Mon, 08/31/2009 - 15:19 | Link to Comment hooligan2009
hooligan2009's picture

investing for ninnies!

http://www.resourceinvestor.com/News/2008/4/Pages/Ninja-Neodymium-Investors.aspx

these guys seem to have their heads screwed on..

 

Mon, 08/31/2009 - 15:19 | Link to Comment FreddyInBangkok
FreddyInBangkok's picture

howbout some clean people ... y'know the fuckers running things

Mon, 08/31/2009 - 15:22 | Link to Comment Anonymous
Mon, 08/31/2009 - 15:28 | Link to Comment Anonymous
Mon, 08/31/2009 - 15:30 | Link to Comment Anonymous
Mon, 08/31/2009 - 19:12 | Link to Comment Anonymous
Mon, 08/31/2009 - 15:34 | Link to Comment hooligan2009
hooligan2009's picture

(hides funny hat) hey I'm not a clown and it was my science background that helped me make brazillions of soon to be worthless bucks that were taxed for your free education!

Mon, 08/31/2009 - 15:56 | Link to Comment Anonymous
Mon, 08/31/2009 - 19:43 | Link to Comment Anonymous
Mon, 08/31/2009 - 16:00 | Link to Comment Anonymous
Mon, 08/31/2009 - 16:00 | Link to Comment Anonymous
Mon, 08/31/2009 - 16:03 | Link to Comment They steal from...
They steal from us everyday's picture

Any car can get 50-80 miles per gallon with ordinary gas.

You use a smaller engine and constantly variable gears and a turbo charger for those that want speed.  The engine cuts off at stop lights and comes back on when you hit the gas.  Under steady speeds, two cylinders cut out until you need more power.

You make the cars out of light weight materials and aerodynamic.

This technology is all THIRTY YEARS OLD.

 

The whole hybrid Bullshit is just another GREEN SCAM.

Mon, 08/31/2009 - 16:06 | Link to Comment Anonymous
Mon, 08/31/2009 - 16:20 | Link to Comment Printfaster
Printfaster's picture

Funny, rare earths seem to tied up totally in private equity.

If it is valuable, the investment is private.  If it has no value, it is distributed on NYSE or NASDAQ. 

 

Mon, 08/31/2009 - 16:33 | Link to Comment 57-71
57-71's picture

The rare earths are numbered 57-71 on the periodic table.

They are, among other similar elements, the commodities that hold my interest.

Mon, 08/31/2009 - 17:29 | Link to Comment hooligan2009
hooligan2009's picture

theres a stock called thorium power that could easily be ramped, trading at 28c today i think...ive asked for some details from the company that is more than they put on their website or reported in the junkpapers

Mon, 08/31/2009 - 17:32 | Link to Comment BM (not verified)
Mon, 08/31/2009 - 18:24 | Link to Comment Anonymous
Mon, 08/31/2009 - 18:58 | Link to Comment Anonymous
Mon, 08/31/2009 - 19:03 | Link to Comment Anonymous
Mon, 08/31/2009 - 19:09 | Link to Comment Narcolepzzzzzz
Mon, 08/31/2009 - 20:54 | Link to Comment Missing_Link
Missing_Link's picture

> if it's not one natural resource you're burning through- it's invariably another.

 

Forgive me for siding with the retarded tree-hugging lefties, but this statement is ignorant.

 

There's a whole spectrum of options between, say, using solar, which is available in more supply than we can use, and using chemical energy such as gasoline, which is available in limited quantities.

Mon, 08/31/2009 - 21:08 | Link to Comment Anonymous
Mon, 08/31/2009 - 23:54 | Link to Comment Anonymous
Tue, 09/01/2009 - 03:47 | Link to Comment Tax Man
Tax Man's picture

The story in NYT: China currently accounts for 93 percent of production of so-called rare earth elements — and more than 99 percent of the output for two of these elements, vital for a wide range of green energy technologies and military applications like missiles.

They will restrict exports in order to make investors place their green technology factories in China. Smart move by the Chineese, who also have secured rights to mine for strategic minerals and metals all over Africa.

Wed, 12/30/2009 - 11:50 | Link to Comment MadScientist
MadScientist's picture

"Cash for Clunkers" was economic stimulus and had nothing to do with being green. The formula for acceptance removed recent drivable cars that would compete with the new car market. (The steel from the clunkers was of course shipped overseas.) The "need" for high mileage cars was driven by high fuel prices driven by (market manipulation by TARP recieving banks and) long commutes driven by selfish real estate interests that fought growth management. Although much has been made of the fuel wasted in one person auto trips, that amount pales to the 8% of total world energy going into nitrogen fertilizer alone, or the 3 years worth of driving fuel to build the average automobile. Technology in a small vehicle is a waste of money. On the other hand large "vehicles" like locomotive engines (2000+ horsepower) and ships use diesel-electric systems (NOT using non-rare earth magnets; using rare earth magnets is a size thing) because large mechanical transmissions waste more energy per unit power transmitted. Industrial batteries (secondary cells, rechargeable) were originally Edison cells using iron and nickel. (Mercury and Cadmium are what make older alkaline batteries toxic.) Single battery design? Lithium (rechargeable) contains the same energy per weight as Aluminum and Methyl Alcohol but much less than Natural Gas or Gasoline. Japan has had multi Megawatt fuel cells (primary battery) running on Natural Gas since 1993, ranging down to 1KW industrial units. Primary batteries are not limited by the second law of thermodynamics for conversion efficiency. They need to be hot to run. The amount of Platinum used would be similar to current catalytic converters, maybe less.

 

Those so called "rare earths" are not actually that rare (they were named when "gay" meant happy). The monzonite sand that covers beaches in India is an ore for rare earths (REEs) and also a source of Thorium for India's breeder reactors. Monzonite sand and other sources are found in states from Alaska to Arizona, Coal ash and mine tailings, and even granite and Mississippi river sediment contain REEs. The price reflects how difficult they are to extract from the ore. It  IS  chemically difficult to separate the individual component REEs and only China appears happy to poison its citizens with the pollution from sloppy separation processing. The amount of rare earth we use in magnets today is less than used as Misch metal in cigarette lighter flints. And that's dwarfed by the usage in steel manufacture. Oops, I forgot, the U.S. purposely destroyed its steel industry. No steel, no need for rare earth production.

 

Interesting that noone has commented on the use of "precious metals" as a hedge. In the last decades of "stability" Silver has tracked at about 1/50th of Gold and Platinum was 2x Gold and Palladium was 1/10th Platinum. And what if you bought Rhodium in june 08 for $9400/oz? Not that I'm a Lyndon LaRouche fan wanting to bring back the Bretton Woods system.

 

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