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Wednesday, October 29, 2014

China Loses Its Grip on Rare Earth Monopoly

I am surprised at this. The danger with any weapon, is once used, your enemies may seek alternatives. An example of this I worry about, is the use of sanctions again Russia. In this case, China used rare earths against Japan in 2010, and Japan found alternatives. Also supply and demand. When supply goes up in price, demand may go down, or their may be an increase in supply as other alternatives are developed.

A new example may be the Russian dominance of Titanium, that is used a lot by Boeing.

References:

China Loses Its Grip on Rare Earth Monopoly - The American Interest

Boeing, United Technologies stock up titanium parts from Russia: WSJ - Reuters

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