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These elements are critical but tiny parts of a number of products. Downstream users and even governments make a lot of noise about ensuring affordable supplies
by philipkglass 5y ago
These elements are critical but tiny parts of a number of products. Downstream users and even governments make a lot of noise about ensuring affordable supplies, but major multinational miners are slow and cautious about developing new projects. The total addressable market isn't that large. Miners aren't interested in over-supplying these commodities as a favor to manufacturers of batteries, magnets, or light bulbs. Especially for rare earth elements, market demand is so limited that one new major producer could significantly reduce market prices.
- netcan 5y agoWhy doesn't someone just "solve this problem with money." I realize this is a simplification, but any number of actors could affordably silo a massive stockpile and make the risk of supply deficits go away entirely. Some of the politicians bringing this stuff up as major future risks could personally afford to seriously mitigated on their personal accounts.
- philipkglass 5y agoThe United States used to stockpile raw materials for military use. A lot of that ended after the Cold War did because it was considered inefficient. (And it probably was; efficiency and resiliency are at odds here.)