DOE WANTS RARE EARTHS

DOE: U.S.' Clean Energy Future Cannot Depend On China's Rare Earths

Laura DiMugno, 1 June 2012 (North American Windpower)

“The U.S. Department of Energy (DOE) has launched a major effort to ensure the U.S. has a reliable supply of rare-earth materials, which are used in a number of clean energy applications, including permanent magnet direct-drive wind turbines…[The Critical Materials Hub] will invest up to $120 million over five years to not only ensure access to these materials, but also develop alternatives that reduce the amount of rare earths needed.

“China provides 94% of the world's rare earths, including neodymium and dysprosium, which are used in the magnets for direct-drive wind turbine motors…With trade tensions with China rising - and China increasing its export taxes on rare earths - U.S. wind turbine manufacturers must face the possibility of relying solely on California-based Molycorp Inc., North America's only rare-earth supplier.”

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“Some companies in the wind energy supply chain are already preparing for this reality. Last September, permanent-magnet generator manufacturer Boulder Wind Power engaged Molycorp to be its preferred supplier of rare earths and/or alloys for wind turbine generators…According to a recent report, 25% of the world’s rare-earth supply will come from China by 2015, as demand for the neodymium and dysprosium necessary for the manufacture of magnets for wind turbines will climb at a pace of 7% to 9% per year through 2015.

“To avoid dependence on China, the new initiative will focus on tackling the challenges across the entire rare-earth spectrum, including mineral processing, manufacturing, efficiency, substitution and recycling…[T]o encourage competition, the DOE will use the $120 million allotted to the new initiative to award grants to businesses, universities, national laboratories and nonprofits to develop proposals to address the key conflicts associated with maintaining adequate supplies of rare earths…”

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