Quest Trend Magazine
Quest Trend Magazine

"Rare Earths and Automation Technology" – New Quest Research

The unstable supply situation with rare earths has specific causes. Quest Research publishes 7 theses in order to look behind the scenes trying to make an objective and useful orientation easier for manufacturers and users of automation technology.

Bochum, Germany, August 02, 2012 --( The seven theses, published in the Quest Trend Magazine Online, spot geological and technological structural problems, oversupply and undersupply at the same time, price determination without considering costs of environmental protection, price speculations, China’s striving for dominance since the 1980s and a suggestion for solution.

Thesis 1 documents that the extraction of the 17 rare earths’ metals has to lead geologically determined to a disproportional structure of supply. That is why "the extraction of rare earths resembles a seventeenpede being out of step moving disorderly" according to thesis 1.

Thesis 2 uncovers that the technologically caused demand regarding rare earths of the automation technology requires a simultaneous combination of frequent and rare elements of the rare earths. So "the structure of supply and demand fits like two left hands," thesis 2 states.

Thesis 3 addresses the environmental pollution with the extraction of rare earths by acid and radioactive arrears. Obviously the current prices do not still reflect the costs of an effective environmental protection. Its consideration will lead to higher prices.

Thesis 4 reveals that a general scarceness in supply of rare earths will not prevail until 2016, instead of that a mixture of oversupply and undersupply can be expected. So it is projected until 2016 that for servo motors Neodymium will be in oversupply while dysprosium, crucial for servo motors likewise, in undersupply.

Thesis 5 clarifies that the extreme price increases of the year 2011 were based on price speculations instead of a scarce supply.

Thesis 6 tracks how striving for dominance has been developing in China since the 1980s targeting regarding rare earths to a world market-controlling position. For this purpose the Chinese Government combined the exportation of rare earths with capital export. Certainly, also enterprises in the USA, Japan and the European Union pursue such a strategy as e.g. with the oil. Therefore the thesis 6 calls that "China is less the main problem rather the main competitor."

Finally thesis 7 opens up the prospect "pushing innovations, extending substitution possibilities!"

The Quest Research is a new department with Quest TechnoMarketing. Quest TechnoMarketing provides market surveys for the automation technology while the Quest Research investigates the basic conditions underlining the results of the market surveys. So by now the substantial changes in the world-wide industrial production since 1980 and the internationalization of world-wide automobile production were investigated and published in the Quest Trend Magazine. The series of articles "Rare Earths and Automation Technology – 7 Theses" is available on
Quest Trend Magazine
Thomas Quest