Popping The Rare Earths Bubble
Sober Look | Oct 16, 2012 03:21AM ET
In recent decades financial bubbles have been plentiful. From the US housing to the global uranium markets, bubbles seem to be simply inevitable (and generally can not be prevented by regulation or other government interference). In fact bubbles occur even in simulated (experimental) markets (seeThe Asahi Shimbun : TDK Corp., which supplies magnets for motors, has developed a magnet where dysprosium is painted on its surface alone rather than being mixed into the entire magnet body, reducing dysprosium use by half. The company plans to start producing the magnet for automobiles in October.
In February, Panasonic Corp. introduced equipment to extract magnets made of neodymium, another rare earth element, from used home electric appliances at its home appliance recycling plant in Kato, Hyogo Prefecture. The neodymium will be reused in air conditioner compressors and in motors for drum washers and other products, Panasonic officials said.
Honda Motor Co. plans by year-end to start extracting rare earths from nickel-metal hydride (NiMH) batteries used in hybrid vehicles. The automaker's dealerships will collect NiMH batteries from disused hybrid vehicles, and a plant belonging to ferroalloy manufacturer Japan Metals and Chemicals Co. will dismantle them to extract rare earths. Honda will then use the collected material in new hybrid vehicles.
The industry ministry estimates domestic demand for rare earths dropped from 31,000 tons in 2010 to 23,000 tons in 2011.
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