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The 2011 Supply Crunch is Coming

Written By Brian Hicks

Posted November 18, 2010

Just when naïve investors thought rare earth was down for the count, there’s word that global demand is likely to outstrip supply by next year, as China cuts exports.

“Under normal conditions the global demand exceeds supply in about 2011,” Professor Brent McInnes from Curtin University in Western Australia said. “In 2016, it’s quite evident that the Chinese demand itself will exceed the global supply of rare earth elements.”

China can give Hillary Clinton all the assurances it wants to, but we all know what’s going to happen down the road. They’ll eventually get to a point where they’ll need all the elements they produce. Take a look at this chart from Business Insider, for example, and tell me, “why is China actively looking to acquire additional REE resources around the world?”

rare earth chart 2010

Because they feel like it?

No.. Because even they realize demand will outstrip supply.

Even Japan knows this, frantically searching for supply. “There is a whole range of economies out there… that are building high-tech industries that are dependent at the moment on a very narrow source,” said John Cole, director of the Australian Centre for Sustainable Business and Development.

Even the auto industry sees rare earth supply problems, according to this report.  They’re problem could be bigger than any one expects, given hybrid sales expectations.

hybridsales2010

We need a new source, outside of China, immediately… We don’t have time to play China’s games. And Greenland may offer all the supply we really need. Here’s more.