Obama’s Clean Energy: a Dangerous Dependence on China

[I AM NOT THAT GUY 5,715]

The headline President Obama wants uppermost in the minds of American voters today is that the stimulus bill is translating into real jobs, after all. For this purpose, he travels to Holland, Michigan to celebrate the groundbreaking of a new battery manufacturing facility there made possible by an infusion of $89 million in funds from the Economic Recovery Act.

The plant is being built by Compact Power Inc., a subsidiary of the South Korean conglomerate LG Chem to produce lithium-ion cells for the Chevy Volt and other electric or hybrid-electric vehicles. (There is a certain irony to the President applauding LG for its leadership, since – as my colleague, Chris Holton, points out in a very important piece at the Center for Security Policy’s website, http://www.centerforsecuritypolicy.org/p18459.xml – that company is providing economic life-support to the Iranian regime. After all, Mr. Obama just signed into law U.S. unilateral sanctions that are intended to discourage precisely the sort of investment companies like LG make in Iran to the benefit our enemies.)

Now, I happen to be an enthusiastic supporter of freeing our automotive fleet from its present, nearly complete dependency on oil-based fuels. I am happy to have what will, hopefully, prove to be safe, durable, efficient and cost-effective batteries manufactured in this country. I look forward to the advent of the Volt and the sorts of vehicles that it may usher in that could allow most consumers to drive around on trivial amounts of gasoline.

The new facility and the 450 jobs it will ultimately offer to bolster Michigan’s depressed economy have an inherent problem: There will be no batteries coming off its production line once it gets going – unless there are supplies of lithium and other rare earth minerals (REMs) from which they can be made. And it’s not just our batteries that are at risk. Such minerals are also essential to a host of other high-tech applications, including in many modern weapon systems.

And last week, the source of 97% of the world’s rare earth minerals, the People’s Republic of China, announced that it was reducing its exports by a staggering 72%. The Chinese are said to be worried about meeting their burgeoning domestic needs. They certainly are interested in pushing up prices they are now in a position to command.

Forbes.com columnist Gordon Chang pointed to another possible purpose in this monopolistic play during his weekly interview on our show, Secure Freedom Radio, on Monday: The Chinese are effectively telling manufacturers all over the world that, if they want access to rare earth minerals, they better move their manufacturing operations to China, thus avoiding export quotas and other restrictions. The question occurs: How long might the Compact Power plant be able to resist the PRC’s REM-powered tractor beam?

Another recent news item adds to the drama of this story. It turns out that, of all places, Afghanistan may turn out to be the Saudi Arabia of rare earth minerals. It will be, under the best of circumstances, years before that wealth can be tapped – apart from what the Chinese are beginning to do in exploiting Afghan copper deposits (get this: protected by U.S. forces).

Still, here is one more powerful reason for ensuring the Taliban are not restored to power: The last thing we need is for those who adhere to Shariah and are, therefore, determined to destroy us, to have a stranglehold on yet another critical ingredient for our economic and national security.

The one bit of good news is that the United States actually does have one mine for rare earth minerals in Mountain Pass, California. It has been hobbled for years by environmental restrictions and was nearly sold off to the Communist Chinese as part of the PRC’s 2005 bid to buy Unocal. But, who knows, if Molycorp, the privately held company that owns the Mountain Pass mine, it can get a piece of Mr. Obama’s stimulus package to restart its operations and pay the premium for environmental monitoring (by some estimates $2.4 million), maybe the President will actually be able to keep in the USA the manufacturing jobs he is touting today – and provide for our competitiveness and vital defense needs in the process.

http://bigpeace.com/fgaffney/2010/07/15/obamas-clean-energy-a-dangerous-dependence-on-china/

[mawilson 2,133]

the People’s Republic of China, the source of 97% of the world’s rare earth minerals

97%? What a bunch of #######.

[IndigoSkies 168]

In what sense is Iran America's enemy?

Is Iran the big and scary monster because it calls America the Great Satan? But then how is that any different than calling another country "Axis of Evil?" The unhealty pre-occupation by Americans with Iran seems very odd to me.

Edited July 15, 2010 by IndigoSkies

[mendeleev 67]

97%? What a bunch of #######.

Mawlison demonstrates, again, that he doesn't know what he talks about. He is under the delusion that lithium is a rare earth mineral. Anyone who took even high school chemistry and was paying attention is aware that the rare earth elements range from lanthanum thru ytterbium. Some chemists include lutetium and yttrium because they occur in many rare earth deposits.

For several years, the Chinese have produced the vast majority of rare earth elements and compounds sold into world markets. There are moderate deposits in California (Unocal shut that mine down several years ago but it should reopen soon), Estonia, India, and some other places. Afghanistan may have some rare earth deposits but they are not mined yet.

For several years, I had responsiblity for sourcing rare earth compounds that my company used -- and the markets changed radically as Chinese production increased markedly about 10 years ago, depressing prices and greatly helping out consuming companies like mine.

In point of fact, China does provide over 95% (and one can find the figure 97% all over the place) of rare earths globally. This has been the case for about ten years.

Mawlison, besides elementary economics, you need to learn some chemistry.

[alienlovechild 75]

In what sense is Iran America's enemy?

Is Iran the big and scary monster because it calls America the Great Satan? But then how is that any different than calling another country "Axis of Evil?" The unhealty pre-occupation by Americans with Iran seems very odd to me.

It could because the Iranians are busy working on a nuclear program which could result in nuke weapons being used in the Middle East. Then there is Iranian support for Hizbollah in Lebanon by supplying lots of rockets aimed at Israel.

[SMOKE 1,426]

In what sense is Iran America's enemy?

Is Iran the big and scary monster because it calls America the Great Satan? But then how is that any different than calling another country "Axis of Evil?" The unhealty pre-occupation by Americans with Iran seems very odd to me.

they hosted a sleep over 20-30 years ago & the relationship has been pretty rocky since.

[I AM NOT THAT GUY 5,715]

Mawlison demonstrates, again, that he doesn't know what he talks about. He is under the delusion that lithium is a rare earth mineral. Anyone who took even high school chemistry and was paying attention is aware that the rare earth elements range from lanthanum thru ytterbium. Some chemists include lutetium and yttrium because they occur in many rare earth deposits.

For several years, the Chinese have produced the vast majority of rare earth elements and compounds sold into world markets. There are moderate deposits in California (Unocal shut that mine down several years ago but it should reopen soon), Estonia, India, and some other places. Afghanistan may have some rare earth deposits but they are not mined yet.

For several years, I had responsiblity for sourcing rare earth compounds that my company used -- and the markets changed radically as Chinese production increased markedly about 10 years ago, depressing prices and greatly helping out consuming companies like mine.

In point of fact, China does provide over 95% (and one can find the figure 97% all over the place) of rare earths globally. This has been the case for about ten years.

Mawlison, besides elementary economics, you need to learn some chemistry.

So, the Chinese really do have us by the #######!

[I AM NOT THAT GUY 5,715]

In what sense is Iran America's enemy?

Is Iran the big and scary monster because it calls America the Great Satan? But then how is that any different than calling another country "Axis of Evil?" The unhealty pre-occupation by Americans with Iran seems very odd to me.

After they sent the Shah into exile, and took hostages for 444 days, showing that the smartest man in the world was a complete idiot, things have been difficult between the two countries. Even worse, they made a deal with the Fascists in this county to help fund the war against the Communists in Central America, in exchange for freeing the hostages, and that insured that even the hardcore left in the US would remain pissed off at them for decades.

Edited July 15, 2010 by ##########

[Darnell 8,478]

Wow - I was sitting here, spinning along, reading this bit -

then after 7 spit-takes, realized just how 'wrong' this 'quotable data' is.

####### ?

Sorry, not in mood to elaborate. I'll just b|tch at the fact-checker over at bigpeace.com

F*cktards.

[mendeleev 67]

So, the Chinese really do have us by the #######!

They do, but it doesn't have to be that way.

The Chinese do produce the vast majority of rare earth elements these days. This was not the case 15 years ago. Indeed, Unocal operated a large mine in California that they shut down in spite of the fact that it was profitable. It just wasn't profitable enough for an oil company, who wanted to deploy their capital elsewhere.

North America has plenty of undeveloped rare earth -- and the deposits, by and large, are not in environmentally sensitive places. There just isn't a will amongst American capital, apparently, to develop and continue to utilize domestic resources.

My (former) company switched to Chinese rare earth sources when Unocal shut down their otherwise profitable mine.

[I AM NOT THAT GUY 5,715]

They do, but it doesn't have to be that way.

The Chinese do produce the vast majority of rare earth elements these days. This was not the case 15 years ago. Indeed, Unocal operated a large mine in California that they shut down in spite of the fact that it was profitable. It just wasn't profitable enough for an oil company, who wanted to deploy their capital elsewhere.

North America has plenty of undeveloped rare earth -- and the deposits, by and large, are not in environmentally sensitive places. There just isn't a will amongst American capital, apparently, to develop and continue to utilize domestic resources.

My (former) company switched to Chinese rare earth sources when Unocal shut down their otherwise profitable mine.

I wonder is any of that stuff can be found in Carson Sink, Nevada. There are lots of old uncovered strip mines out there, and huge piles of tailings. If I knew what I was looking at, perhaps I could make a few bucks next time the guys get together for desert trip.

[mendeleev 67]

I wonder is any of that stuff can be found in Carson Sink, Nevada. There are lots of old uncovered strip mines out there, and huge piles of tailings. If I knew what I was looking at, perhaps I could make a few bucks next time the guys get together for desert trip.

Good luck. The real money is in rare earth refining ... and that's probably the reason the Chinese are restricting their exports of crude product. The separations are tough, so purified compounds and elements draw a premium.

[I AM NOT THAT GUY 5,715]

Good luck. The real money is in rare earth refining ... and that's probably the reason the Chinese are restricting their exports of crude product. The separations are tough, so purified compounds and elements draw a premium.

It's just a pipe dream. I once thought about buying a hole in the ground, and retiring out there. But, now that I am married, priorities have changed.

[alienlovechild 75]

Even worse, they made a deal with the Fascists in this county to help fund the war against the Communists in Central America, in exchange for freeing the hostages, and that insured that even the hardcore left in the US would remain pissed off at them for decades.

You're more than a little confused here. The American hostages were released the day Reagan took office. Iran/Contra was years later.

[mendeleev 67]

You're more than a little confused here. The American hostages were released the day Reagan took office. Iran/Contra was years later.

As I remember, Reagan made a deal with the Iranians to get the hostages relaesed as soon as he became President (the real October Surprise) and he paid them back with Iran-Contra. It was a cool pair of deals for Reagan, first arranging to be paid by Iranian fundamentalists and then repaying the debt while doing dirty deal on Democrats in Congress who labored under the naive opinion that the US was a nation under law.

Alien, maybe you are too young to have seen the events unfold -- some of us have the benefit of memory.