The scarcity of rare earths for military applications in the USA has become "an untenable situation," according to Gary Billingsley, executive chairman of Great West Minerals Group (GWMG). The US military uses magnets made from a number of specific rare earth elements for key applications such as lasers, ballistic missiles and guidance systems and is totally reliant on China for supply. "At military level, there is quite a concern," he said. "I am not sure if it is at political level yet, but it soon will be." China controls 97% of the world's light and heavy rare earth production, predominantly from Inner Mongolia, and while the industry is scrambling to activate new sources, China is set to remain the world's foremost source for the medium term. As a result of this pending demand crisis, the price of neodymium has risen to the US$40/kg mark in the last six months.
