China's rare-earth metal cuts spark supply fears

China has cut its export quotas for rare-earth metals in the first half of 2011 by a further 11.4%, sparking concerns among wind turbine manufacturers about access to the minerals used in the production of permanent-magnet generators.

But rare-earth analysts say the move is not as alarming as it first appears, because supplies and prices of the magnets produced by Chinese manufacturers are not affected. Rare-earth mineral neodymium is used in magnets.

"There are no restrictions on the finished permanent magnets that use the rare earth, or on the complex alloys to make the magnets," says Gareth Hatch, founding principal of Technology Metals Research.

"There is a lot of concern on the raw-material side, but if you are buying magnets from China for the foreseeable future,…

Become a Recharge subscriber!

Or try our free trial.

Order Subscription

Already a member?

Login