Rare Earth materialsThe entertainment industry understands the rare Earth crisis, why doesn’t everybody else?
U.S. dependence on rare earths imports substantially exceeds our dependence on imported petroleum. In 2011, the United States imported 45 percent of the petroleum we consumed, but we imported 100 percent of the rare earth materials we consumed that same year — and rare earths are far more essential to a wider variety of industries than petroleum is. China controls the production, refining, and processing of over 95 percent of the world’s rare earth elements despite only controlling about half of the world’s rare earth resources. In the 1980s, there were approximately 25,000 American rare earth-related jobs; now we barely have 1,500. The United States must take action now to reduce our dependence on foreign sources of rare earth materials and bring back jobs.
Warning: This Op-Ed contains spoilers to Season One of House of Cards. In the conclusion to Season One of House of Cards, Democratic Whip Frank Underwood’s hopes of being appointed U.S. vice president depend on whether he commits to U.S. multibillionaire industrialist Raymond Tuskto do everything he can to ensure a secure source of Samarium from China. Samarium is not fictional. It is one of seventeen rare earth elements, primarily the lanthanide series, different combinations of which are needed to make modern life enjoyable.
U.S. dependence on rare earths imports substantially exceeds our dependence on imported petroleum. In 2011, the United States imported 45 percent of the petroleum we consumed, but we imported 100 percent of the rare earth materials we consumed that same year, according the U.S. Energy Information Administration and U.S. Geological Survey, respectively. Additionally, rare earths are far more essential to a wider variety of industries than petroleum is. They are necessary for the production of Hollywood films and television series, fossil and renewable fuels, wind turbines, solar panels, telecommunications, consumer electronics, hard drives, LED and LCD screens and televisions, and weapons systems to protect American troops.
Samarium is central to the House of Cards conclusion because China controls the production, refining, and processing of over 95 percent of the world’s rare earth elements despite only controlling about half of the world’s rare earth resources. Accordingly, almost all rare earth materials mined anywhere on earth must be shipped to China to be turned into metals, oxides, phosphors, and other materials, then shipped back in refined form. This is a reversal of the historical pattern of Western nations importing raw materials and exporting finished products, and it shifts highly skilled and well-paying jobs out of America. This result is due to Deng Xiaoping’s far-sighted industrial policy, and the primary reason Apple and others have such a strong presence in China: access to the rare earth material supply chain — from extraction all the way to the creation of microchips, hard drives, and computer screens that make their products work.
In the best-selling PC game Sid Meier’s Civilization V, one of the modifications players can download includes Apple Corporation as a player civilization. The Apple Civilization, like all others, possesses a special bonus. Theirs is called “rare earths” and provides the player bonus resources. This represents a nod to Apple basing their primary manufacturing operations in China to ensure secure access to the rare earth supply chain. As far back as 2009, Wired published an article titled “China: All Your Rare-Earth Metals Belong to Us.” The title both acknowledges Chinese domination of the rare earth industry and is homage to the poorly translated intro sequence to the 1990s video game Zero Wing, which states “All your base are belong to us.” The quote has become a meme among the Technorati, and the video game and its console depend on rare earths to provide entertainment.
The entertainment industry’s interest in rare earths, and that of its consumers, indicates that Hollywood, Silicon Valley, and their overseas counterparts understand the importance of rare earth materials. Wired’s short article points out Chinese domination of the processing and refining side of the rare earth industry. Taken together, these make a bigger point: Congress and the federal government lag behind popular culture and industry in recognizing the importance of rare earth elements and their derivatives, as well as China’s domination of the industry. Congressional committees have held hearings and the Defense Department has begun to seek new sources of rare earths, but these are not sufficient to seriously address American dependence on rare earth imports.
In the 1980s, there were approximately 25,000 American rare earth-related jobs; now we barely have 1,500. This is one result of China’s success in moving the entire rare earth industry to its shores. The United States must take action now to reduce our dependence on foreign sources of rare earth materials and bring back jobs. Fortunately, Board Members of RARE, The Association for Rare Earth, have been met enthusiastically by forward looking Congressmen committed to addressing these issues. Some of RARE’s policy recommendations include: (1) working with our trading partners to expand the amount of rare earths in the international supply chain; (2) improving America’s academic and intellectual infrastructure to rebuild a domestic rare earth industry; (3) pursuing rare earth element recycling incentives; and (4) expediting domestic rare earth development in an environmentally sound way.
Stevens C. Berry is senior vice president of RARE The Association for Rare Earth.
