Rare Earth News

EU may stockpile rare earths after China reduces exports

After China announced that it would restrict global supply of its rare earth elements and introduce new quotas, the European Union is considering stockpiling its rare earth mixed carbonate for the future, Reuters reports.

China's sharp cut of exports has led western rare earth mining operations to boost production, hoping to fill the supply void that has opened, especially for Lanthanum and Cerium, which are used by petroleum refineries around the world, the news source stated.

"I have been approached by the EU about stockpiling. There is a task force that is looking over strategic materials and they have contacted me," said David O'Brock, chief executive of Molycorp Silmet, a top European rare earths producer. "They were surprised that we do tantalum and niobium, which are also strategic materials."

Elsewhere in the West, investors are scrambling to cash in on the new demand in places across Canada.

In Quebec, 56 percent of the potential deposits of rare earth elements outside of China could be laying beneath the service, which 41 exploration projects are hoping to tap in to.

According to Trade Arabia, the diversification of rare earth sources in the near future is likely to ease the world's concerns of a shortage caused by China.