China's Metals and U.S. Energy Dependence

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As recently as 2005, a simple change in building codes turned China from the world’s largest exporter to a net importer causing a 450% increase in vanadium prices in less than a year.
China is making the use of vanadium a key part of its 12th "Five Year Plan". As of July 1 this year, any new building design must incorporate grade 3 or 4 rebar, both of which require vanadium while grade 2 does not. This equates to an additional 27,000 MTV per year demand of vanadium an increase of about 40%.
China is also focusing significant efforts on commercializing vanadium redox batteries - the only battery available today (and for the foreseeable future) that can scale to power grid needs for renewable energy facilities. China just announced a vanadium redox battery that passed the 10,000 charge/discharge mark.
Vanadium is critical for the American steel, defense, aerospace and energy industries. 45% percent of the vanadium currently consumed in the US is sourced from Russia, China and South Africa. A further one third of the total vanadium currently consumed in the US is derived from raw materials originating in Venezuela. Thus, close to 80% of vanadium consumed in the US today originates in Russia, China, South Africa and Venezuela. 15% of the demand is met by vanadium originating in Mexico. So only 5% or less is supplied domestically as a by-product from a uranium mine in the US.
There is no known substitute for vanadium used in many titanium alloys. Without vanadium the US cannot produce aircraft, missiles, light weight personnel transports and other military and commercial aerospace products.
American Vanadium Corp. (AVC) plans to open the only vanadium mine in the US by the end of 2012 in Nevada. Our mine could supply 50% of domestic vanadium market.
Please do visit our site: http://www.americanvanadium.com and watch for breaking vanadium news on our Twitter feed: http://www.twitter.com/AVCVanadium
Here's to a greener and stronger future,
Michael Hyslop
Director of Corporate Development
American Vanadium Corp.
http://www.americanvanadium.com/disclaimer

Michael Hyslop of NV 2:13PM July 06, 2011

It is perhaps a little known fact that Australian companies control equal amounts of rare earth elements as China.
It is susurprising that American investors haven't been flocking to these Australian companies as they have miminuscule market caps and hold just on half of the world's rare earths commercially viable deposits.
Chinese interests are already moving into position and it seems that Australian investors do not have deep enough pockets to protect them.
These issues, including the compnaies, the resources and world positions are explored at www.AustralianRareEarths.com.

sparty 9:43PM July 12, 2009

While all Americans are waiting for the economy to change.
China has wasted no time in monopolizing rare earth metals.
Wake up America, this is something we cannot allow to happen,
not right under our noses.
There are jobs right there to be had, not to mention that if
we want a cleaner enviroment, we are going to need our own
rare earth metals, or are we going to give that away to China
too.

A. I. Sepulveda of CA 7:02PM July 09, 2009

A recent (7/1/09) article in US News by Kent Garber laid out another “inconvenient truth”. The article outlines a scenario that has China holding a monopoly on the critical rare earth elements market. Can we really afford to procrastinate and “once again” demonstrate our ignorance of the strategic and commercial importance of more critical American natural resources? Much of the new technology necessary to start “the green economy” depends on rare earth metals.
Rep. Mike Coffman of Colorado (amendment into the House's defense budget bill – reviewing rare earth concerns) and Sen. Evan Bayh of Indiana (proposed requiring the defense department to evaluate the extent to which the country's weapons are dependent upon rare earth metal supplies) have proposed legislation that would help. Thorium Energy CEO Ed Cowle has been trekking to Washington to talk to congressmen, senators, and agency officials. “Part of their problem, says Cowle, is getting people to realize there is actually a problem”. As Jack Lifton, a longtime metal analyst, says, "The Chinese are depending, as they always do, on the myopia of the American investment community that only sees to the end of its nose."
We need to develop domestic supplies through companies such as Molycorp and Thorium Energy, Inc. before China becomes the sole source. Everyone needs to make sure that their Congressmen understand that we do care.

P Kennedy of TX 4:40PM July 07, 2009