SAN JOSE, Calif., June 6 (UPI) -- The U.S. Geological Survey has warned the U.S. Congress that demand for rare earths is increasing 8 percent a year.
The caution comes in the wake of U.S. companies searching worldwide for replacement suppliers for rare earth elements.
China supplies 97 percent of the global market's demand, primarily from a single mine near Baotou city in Inner Mongolia.
Last week domestic RRE producers concerned about potential supply shortages urged Congress to help reduce the United States' dependence on China for its rare earth supplies in light of Beijing's announcement in July 2010 that it would cut its export quotas by more than 70 percent despite growing demand worldwide.
Since China's pronouncement, RRE mineral prices have skyrocketed, in some cases more than 500 percent, Business Wire reported Monday.
California's Green Technology Solutions has taken on the challenge of helping eliminate the risk of supply shortages to the U.S. market and GTSO is working in conjunction with the Mongolian company Ar Erkhes, LLC to ship RRE from Mongolia to South Korea.
