Monday, September 7, 2009
Could Neodymium Be The New Gold?
Recent reports like this one in the NY Times have spoken of China's intention to severely limit exports of rare earth metals. One of these rare earth metals is Neodymium which is used primarily to make permanent magnets.
China produces around 95% of all rare earth supplies with other smaller deposits located in North America, Canada and Australia so comparative to oil exports they are the Saudi Arabia of the rare-earth mining world.
These neodymium magnets are a vital component in electric motors and no doubt will be in even greater demand as we move towards large scale electric car production. The Toyota Prius uses several pounds of neodymium in it's electric motor for example.
Despite the growing demand from industry, China has been cutting back exports of rare-earth metals for the past few years citing local environmental concerns from these rare earth mines.
The present worldwide situation concerning China and Neodyimium is of concern to industry because so many products rely on this material in their construction. China's Ministry of Industry and Information Technology (responsible for rare earths) have since withdrawn from the severity of their draft plan to severely limit exports but production will still struggle to keep pace with demand no matter what.
There is however another huge factor that no one has discussed and has yet to come into play; the upcoming unprecedented demand for free energy electromagnetic overunity products based on Orbo technology.
The surge in demand for these products and technologies will require extremely large quantities of Neodymium to be supplied worldwide, much more than currently imagined. With China holding 95% of the market and in posession of the largest rare-earth deposits while at the same time restricting supply it will result in a massive increase in price of these materials. Even with the Mountain Pass mine in California coming back onstream demand will likely be completely off the scale.
As of late 2008, Neodymium was trading at around $42/kg. If events play out as expected with the release of Orbo technology we could see Neodymium prices reaching many hundreds of dollars per kilo - perhaps even higher. Could Neodymium soon be worth it's weight in gold?
From the Steorn website:
Orbo is a technology that creates energy from magnetic interactions. Orbo provides free,
clean and constant energy at the point of use.
Orbo 1.0, the first commercial release of our platform technology, is based upon our electromagnetic implementation. Orbo 1.0 will be made available initially under license to 300 engineering companies and to the wider product development community later during the course of 2009.