Contents
Introduction..................................................................................................................................... 1
What Are Rare Earth Elements? ...................................................................................................... 2
Major End Uses and Applications ................................................................................................... 2
Demand for Rare Earth Elements.............................................................................................. 3
Rare Earth Oxide Prices ............................................................................................................ 5
The Application of Rare Earth Metals in National Defense ............................................................ 7
Rare Earth Resources and Production Potential .............................................................................. 8
Supply Chain Issues ................................................................................................................ 13
Molycorp’s “Mine to Magnet” Vertical Integration Approach for Rebuilding the
U.S. Rare Earth Supply Chain........................................................................................ 14
Other Recent Supply Chain Developments....................................................................... 16
Role of China.......................................................................................................................... 16
Japan’s Interests...................................................................................................................... 19
Selected Possible Policy Options................................................................................................... 19
Research and Development ..................................................................................................... 19
Authorize and Appropriate Funding for a USGS Assessment................................................. 20
Support and Encourage Greater Exploration for REE............................................................. 20
Challenge China on Its Export Policy ..................................................................................... 20
Establish a Stockpile................................................................................................................ 20
Hearings on Rare Earths and Related Legislation in the 112th Congress ....................................... 21
Executive Branch Activities........................................................................................................... 22
Department of Energy ....................................................................................................... 22
Department of the Interior................................................................................................. 22
Department of Defense...................................................................................................... 22
Other Federal Agencies ..................................................................................................... 23
White House Office of Science and Technology Policy ................................................... 23