Signed Independent

The article notes China, which produces about 97% of worldwide rare earth elements (essential for electric vehicles), announced plans to cut rare-earth exports by 40% and to maintain its 10 – 25% export tariff. This decision will probably be challenged, but China apparently favors its own electrical component industry instead of favoring still more exports (although, to be fair, US corporations might export electric vehicle component manufacturing to China anyway, just like they seem to do with everything else).

Realistically, this indicates US electric car component production has even more challenges and will now encounter more competitive disadvantage (you’d think that before spending so much money on infrastructure, our planners would have looked at the resource availability, just as you would do if you were remodeling your kitchen). The US mining industry hopes to open a California rare-earth mine in 2012 but this mine will supply maybe 10% of worldwide demand by 2014, assuming it even passes California’s vast regulatory processes and public opposition. Even lithium (one of the most common elements in the universe) is in limited commercial supply. The article also concludes that no action is expected for domestic rare-earth loan guarantees in the current session of Congress.

Looks like Obama has again blown some of his wishful-thinking-disguised-as-hope smoke right at us.

free market always sounds great until there is a disaster (e.g. financial meltdown, giant oil spill)… then the blame points to lack of government involvement. i suppose you like breathing toxic air before the clean air act? think objectively and you’ll realize some form of balance between gov involvement and free market is always necessary.

obama might not be perfect but he’s doing a lot more forward driving policies than many of his predecessors. unfortunately he is also spending more time cleaning up mess not only from 8 years of backward policies, but also 30+ years since the oil crisis in the 70s. like him or not, at least this president has a lot of common sense.